Final Ethnoconsumerist Report MK 501 E INTERNATIONAL CONSUMER BEHAVIOR Mengqiao JIN-MSC International Luxury Brand Management Programme ESC RENNES School of Business Autum 2012
Introduction and purpose
This report is an analysis about the difference of U.S.market and Chinese market, related to the trend of DEALER CHIC, which has become an integral part of daily life for millions of consumers.
Consumers have always loved getting good deals or executive rewards, but rather than having to hide one’s haggling, securing the best deal is now accepted, if not admired by one’s fellow consumers. That’s why we can find so many DEALER CHIC websites, among them we can easily choose the good deal any time any where. Take example, in Chicago, Groupon recently provided to registered users a personal body shaping courses with 72% discount, you just need to spend 29 USD to enjoy 20 times personal trainer courses in the gym, which usually have to spend $ 350. (Source: Vanity Fair 2011.08)
Groupon attracts consumers to buy with a low discount, so far it achieved to help users get the price benefits of $ 136 million. This crazy website was founded in 2008, it has attracted a number of imitators in a short period of time, they are all over the United States, Britain, Germany, Russia and China, in China hundreds of similar websites sprung up adhering to this model.
The DEALER CHIC model, just as Groupon, which generated from the pressure of the economic environment, Americans need to save money while they still want to follow the previous consumption and entertainment. While the Chinese, specially young people, they have living pressures significantly higher than in previous years, accompany with the rising housing price and inflation, they also have the same needs.
Since China's business environment and user consumption habits is variously different with United States, this mode moved here from the United States must go through the process of localization.
The purpose of this article is based on the contrast to the U.S. market from the point of view of economy, culture, as well as different industries, focusing on the Chinese market analysis to find potential opportunities and existing problems, and put forward feasible suggestions to DEALER CHIC trend in China to achieve localization, in order to have a healthier and long-term development in the future.
Economic and market comparison Still under the influence of economic crisis，there’s no overlooking the fact that many consumers in mature markets like Northern America, Europe and Japan are at the very lest fearful of their financial futures, meaning that any kind of deal or discount is welcomed with open arms. It can well explain the reason that
In USA, traffic volumn of discount website and buying information integration website increased 610% between August 2009 to 2010, data from market research firm Experian Hitwise. The annual revenue of group-buying in United States reached $ 1.12 billion and $ 2.67 billion respectively in 2010 and 2011. （Data source: local offer network）
China's economic growth is beginning to slow, under multiple pressure of the U.S. recession, the European debt-ridden, Japan's economic malaise and other factors. Export growth is difficult to sustain, so more and more enterprises in China will focus on stimulating domestic demand, and to occupy the domestic market with more competitive price. Chinese consumers have to face the inflation pressure, so securing the best deal and deal hunting become good ways to alleviate the pressure. The emergence of dealer-chic websites in China was not long ago, but has become a popular new consumption style. Although it has not become the mainstream of consumption style, its explosive power has already been gradually revealed.
China's e-commerce market scale reached 121 billion RMB in the third quarter of 2010, there are about 1.08 million traditional businesses units which...