China to become worlds second largest consumer market by 2015

China is likely to become the worlds second largest consumer market by 2015, a Boston Consulting Group (BCG) report has claimed.

New Delhi, Oct.22 : China is likely to become the world's second largest consumer market by 2015, a Boston Consulting Group (BCG) report has claimed.

According to Xinhua, the report is based on a survey of 4,258 consumers in 13 Chinese cities from February to March 2007.

It says that Chinese consumers are experiencing an unprecedented wealth growth, which is three to five times faster than developed countries in the past 50 years, and adds that most Chinese consumers plan to spend more in the near future to fulfill their family dreams.

"The past decade of rapid economic growth has brought prosperity but also uncertainty, resulting in a highly complex consumer market with diverse consumer attitudes," said Hubert Hsu, senior partner and managing director of BCG, at a press conference in Beijing.

"Capturing the next wave of consumer growth in China will involve developing deep consumer insights and creating marketing differentiation," Hsu added.

The report said there are significant generational differences in terms of spending attitude among Chinese consumers. The strong interest in trading up, which means spending more money for more expensive products, was driven up by consumers' increasing desire for better goods and services and rising concern over safety and quality of cheap products.

Chinese consumers put more faith in brand names compared with the US consumers and they believe good brand represents quality, safety, effectiveness and durability, said Hsu.

The report suggested global suppliers in China should establish strong, branded relationships with China's treasure-hunting consumers, provide the kinds of products that appeal to practical concerns and emotional needs, and be willing to customize their offerings to meet the needs of a geographically diverse population.

ANI