Inside the Mind of the Chinese Consumer

Key ideas from the Harvard Business Review article by William McEwen, Xiaoguang Fang, Chuanping Zhang, and Richard Burkholder

The Idea

Ever since China emerged from its Maoist cocoon, companies around the globe have been clamoring to do business in or with China. But too many of them don’t understand Chinese companies and consumers. Western executives, in particular, wrongly view China as merely a giant production factory peopled by eager, engaged workers—or a giant, monolithic population starving for basic consumer goods. The consequences? Western companies risk stumbling badly when they try partnering with Chinese firms or selling their wares to Chinese consumers.How to avoid these risks? Develop an accurate portrait of who the Chinese people really are and how they’re changing—so you base strategic decisions on facts, not myths. And the facts may surprise you. For example, contrary to most Westerners’ beliefs, Chinese workers want more than just a job and salary: they desire recognition for their efforts and opportunities to grow. And Chinese consumers want to do more than just clean their homes and cook their food: they yearn to tantalize their tastes and to be seen as au courant in their choice of products.By replacing misconceptions with facts, you deepen your understanding of what Chinese people really want. And you develop business strategies that successfully meet those demands—before your competitors can.

The Idea in Practice

To successfully do business in or with China, acquire accurate information about the country’s workers and consumers.WorkersConsumers