Consumers in China are the most health-conscious people in the world, according to a new report entitled Capturing a Share of China’s Consumer Health Market by The Boston Consulting Group (BCG).
BCG’s Center for Consumer and Customer Insight (CCCI) surveyed 2,600 Chinese consumers aged 18 to 65, from the middle and affluent classes, and from large, medium, and small cities across the country.
The research revealed that Chinese consumers are increasingly health conscious, buying a wide variety of products to treat common ailments, boost their energy, and strengthen their immune system.
These are propelled by rising incomes, the stress effects of urbanization, an aging population, and the country’s ongoing issues with food safety and quality.
“Almost half of the Chinese consumers we surveyed said they feel subpar because of lifestyle factors, such as work pressures, family obligations, and long work hours,” says Carol Liao, a BCG senior partner and coauthor of the report.
“Common complaints were insomnia, fatigue, lack of energy, obesity, and frequent illness.”
Other findings of the report include:
- Traditional Chinese medicine is popular with consumers of all ages, not only the older generation;
- Chinese consumers often lack knowledge about health and wellness treatments and do not trust their claims;
- Brands are powerful, and their reputation matters;
- Most consumers make final purchase decisions on-site;
- Although the Internet is not an important purchasing channel for vitamins and over-the-counter treatments yet, it is fast emerging as one.
Capitalizing on the market
“For manufacturers of health and wellness products, Chinese consumers present an increasingly attractive market,” says Chun Wu, a BCG partner and coauthor of the report.
“But before jumping in and committing valuable resources to secure a foothold, most companies are wrestling with a variety of strategic issues, such as which consumer segments to target, what products to offer, how city size affects consumer behavior, and which distribution channels to use.”
The report suggests that companies seeking to make inroads in China should focus on segments that play to any advantages in scale, brand strength, product efficacy, or expertise.
They must build their brands; educate and inform consumers; manage retail outlets aggressively; be ready for e-commerce — especially to sell vitamins and supplements; and understand the role that city size plays in consumer behavior.
