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News    >    May 17, 2012

NIELSEN:  RETAILERS MUST INTEGRATE CHINESE CONSUMERS’ OFFLINE AND ONLINE SHOPPING EXPERIENCES TO SUCCEED IN E-COMMERCE

BEIJING – May 17, 2012 – A new analysis by Nielsen, a leading global provider of information and insights into what consumers watch and buy, finds that to succeed in e-commerce, retailers must integrate Chinese consumers’ offline and online shopping experiences.

“With over 500 million people online, China’s e-commerce industry already offers major opportunities to retailers and is poised for significant development and growth in the years ahead,” said Joey Chan, vice president, Nielsen China. “Many in China are already preparing for the time when the rest of the population begins to adopt e-commerce.”

According to Nielsen, China’s online shoppers are primarily younger and more educated consumers (80 percent have a college education).

“For China’s traditional online shoppers, price and convenience rule,” said Chan. “For traditional brick-and-mortar retailers, entering the online market expands their potential shopper base by offering more convenient buying opportunities. But, to truly win in e-commerce, retailers must synergize their online and brick-and-mortar shopping experiences to improve the customer’s experience both online and offline.”

Nielsen’s analysis finds that retailers planning their Chinese e-commerce strategy have two main goals: (1) expanding their consumer base, and (2) improving consumer satisfaction and loyalty. As retailers look to integrate their offline and online businesses, Nielsen’s Chan suggests marketing strategies to appeal to the Chinese consumer:

  1. Products – Chinese online shoppers are primarily young and educated consumers who are seeking value and convenience, along with particular types of products. “Offering unique product assortments online—products unavailable in most offline stores—and giving the consumer multiple convenient options for payment and delivery are likely to resonate with these shoppers,” said Chan.
  1. Price/Cost – While consumers do expect some cost savings online—at least in some categories like apparel and electronics—price is not their only consideration when choosing an online retailer. “Favorable reviews from previous customers, product availability/choice, and fast delivery offerings also drive many online purchases in China, so retailers who meet these demands can likely avoid losing out in a price war as long as they maintain a low-cost reputation,” he said

  1. Promotions – Online shopping offers many advantages for precision promotions, giving the retailer opportunities to better reach their potential customers. Combining promotions online and in brick-and-mortar locations can help synergize the two businesses and drive sales.

  1. Communication – E-commerce and online shopping flip the traditional store-to-consumer one-way conversation. Consumers are now searching out retailers’ websites for specific products and learning about goods via social media. “Retailers need to engage in this social conversation and interact with China’s tech-savvy consumers who are increasingly open to boosting e-commerce spending,” said Chan.

About Nielsen

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement,

online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visit www.nielsen.com.

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Wendy Wang, wendy.wang@nielsen.com, 008613681695919


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