Dear Reader,
Over the past 20 years, Roland Berger has conducted more than 80,000 interviews in China with people from all walks of life, giving us unprecedented access to the way Chinese consumers see their world. We have found out about their preferences and dislikes, their hopes and fears, their aspirations and what they are happy with in the status quo.

These interviews were mostly held in connection with one of the more than 200 assignments we work on in China each year, affording us unrivalled insight into the Chinese market. For at least 15% of these assignments we have used our Roland Berger Profiler tool to analyze the behavior of Chinese customers.

To keep on top of developments in 2008/2009 we felt it was important to conduct a largescale survey to consolidate our knowledge of this exciting and still growing market. This study presents you with some of the results of this undertaking, which covered 12,000 Chinese consumers in 64 cities, ranging from the four megacities Shanghai, Guangzhou, Shenzhen and Beijing down to tier-3 cities.

Ignatius Tong, Partner and Vice President, Consumer Goods and Retail in China, believes knowing the customer base is vital for any business striving to penetrate or survive in the Chinese market: "More than ever, it is critical for FMCG to be tailored to specific consumer needs. This requires a more insightful understanding of consumers that goes beyond mere demographics."

John Shen, Partner in Automotive, agrees and points out how critical brand management has become: "Brand loyalty can only be nurtured and enhanced through the consistent delivery of brand values at every customer touch point. Brand strategy and brand management should be at the top of the agenda for every CEO."

We are delighted to be able to include interviews with two CEOs of Western companies which have been operating successfully in China for many years: Paolo Gasparrini, CEO of L'Oreal China and Günter Butschek, President and CEO of Beijing Benz Daimler Chrysler (BBDC). Their impressions about the future of the Chinese market will be of great interest to any reader working or investing in China.

The following report is the first of what we're hoping will become an annual cornerstone of insight into the Chinese consumer market. In 2009 everybody will be looking to understand the unfolding domestic consumption in China as exports suffer due to the world economic crisis. In this environment we are looking forward to continuing to assist businesses in China in developing the domestic customer base and defining winning road-to-market strategies for our clients in this country.

Charles-Edouard Bouée,
Regional Coordinator Asia,
President & Managing Partner,
Greater China

Visit Chinese Consumer Report 2009 Download Page

You can download Chinese Consumer Report 2009 in PDF format.

CONTENTS
A. Method and Scope 04
B. The ChinesE Consumer 08
1 SIx Recommendations 08
2 Chinese Surprises 18
3 Know your archetypes    21
4 Sample Industries: The cosmetics market 28
5 Sample Industries: The automotive industry 33
6 Straight from the horse's mouth 37
C. About...
... Roland Berger 42
... Cic 43
... L'oréal 44
... BBDC 45
D. Contacts 46

CHINESE SURPRISES
China is unique among the nations of our planet. It is home to the world's largest population, it is governed by the Communist Party and it has experienced unprecedented economic growth over the past 30 years. Even now, with the global economy in the doldrums, China still expects roughly 7% growth for 2009.

Most companies have very little or no experience in such a market, making it doubly important to invest in extensive research before venturing into China. Western companies that have so far been successful in the country have usually spent years planning their market entry before going there. In China more than elsewhere, unexpected tendencies in the general development need to be taken into consideration at all times. It is not enough to trust your feelings or base your judgment on Western market circumstances.

We identify four critical factors that need investigating by any company wishing to establish a clear brand image in China:

• Regardless of city tier, leisure spending remains roughly equal – it's the frequency of leisure pursuits which differs
• Average family size is connected to income rather than geography
• People consider themselves to be fashionable in most parts of the country, regardless of city tier
• Interest in Western culture is evenly spread among all of society

Roland Berger Strategy Consultants Worldwide
Roland Berger Strategy Consultants, founded in 1967, is one of the world's leading strategy consultancies. With 36 offices in 25 countries, the company has successful operations in all major international markets. In 2008, it generated more than EUR 670 million in revenues with 2,100 employees. The strategy consultancy is an independent partnership exclusively owned by about 180 Partners.

Roland Berger supports leading international corporations, non-profit organizations and public institutions in all management issues – ranging from strategic alignment and introducing new business models and processes to organizational structures and IT strategy.

Roland Berger is based on global Competence Centers that are organized along functional and industry lines. This allows us to offer tailor-made solutions devised by our interdisciplinary teams of experts.

At Roland Berger we develop customized, creative strategies together with our clients. Providing support in the implementation phase is particularly important to us. In so doing, we create value for our clients. That's why our approach is based on the entrepreneurial character and individuality of our consultants – "It's character that creates impact." All employees at Roland Berger Strategy Consultants strive to adhere to our three core values: excellence, entrepreneurship and partnership.

Roland Berger Strategy Consultants Greater China
The Chinese market is a key pillar of Roland Berger Strategy Consultants' international expansion. Since our entry into the China market in 1984, the consultancy has grown rapidly: The four Chinese offices (Shanghai, Beijing, Hong Kong and Taipei) now have over 200 people dedicated to working extensively with leading Chinese and international companies.

With the motto "Client and quality first," we offer consulting services in fields of industry such as automotive, electronics, telecommunications, consumer goods and retail, engineered products and high tech, transportation, financial services, chemicals and oil, building materials, and real estate. Our services are focused mainly on strategic and operational consulting involving every aspect from M&As, corporate development strategy to marketing as well as supply chain management.

Currently, Chinese clients account for more than 70% of our total revenue in Greater China. Through in-depth understanding of the Chinese business environment and dedication to forward-looking, creative, targeted and practical solutions for clients, Roland Berger has gained a very strong reputation in the Chinese market. We offer tailor-made solutions according to the individual needs of each client in response to current Chinese market development trends.

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