Future Watch: Consumer trends in China and Hong Kong

OTSIKKO
ALAOTSIKKO, KUUKAUSI VUOSI
FUTURE WATCH REPORT ON FUTURE CONSUMERS:
INSIGHT INTO MAINLAND CHINA & HONG KONG
www.marketopportunities.fi

FUTURE CONSUMER ROLES
Future Watch into Mainland China & Hong Kong, December 20182
This report aims to identify and communicate future consumer trends in Mainland China and Hong Kong over the next 2-10
years. These trends are likely to impact the products and services these consumers buy and the marketing they respond to.
Many of the global trends identified in the 2014 Future Watch Report What Makes Us Buy and Why? are applicable in China
today. However, to avoid repetition, we have aimed to identify significant trends that were not covered in this study, with a
particular focus towards trends that are specific to China’s unique market.
To complement our future trend forecasting, we surveyed 600 middle-affluent consumers across Mainland China and HK,
providing a current snapshot of how consumers view these trends. Results from the survey are included throughout this
report.
This report follows a similar format to What Makes Us Buy and Why?, firstly identifying 12 consumer roles for the future. For
each role we highlight how these consumer types represent key China trends. To provide context, each role includes a case
study of a nascent example of this trend. Commentary also highlights how HK and Mainland consumers are differing in the
early stages of each trend.
After explaining the consumer roles, we have provided a deep dive into four key areas identified by Business Finland including
Seamless Shopping Experience, Future of Entertainment, Personalize It, and Consumer Cleantech. The relevant consumer
roles are linked to these areas. We then summarise each consumer role and include opportunities and action areas that
Finnish exporters would be wise to focus on to best connect with these consumers in the future.
To ensure readers keep a Finnish and Nordic context in mind when reviewing the trends, we have included high level
perceptions of the region as they stand resulting from social listening and the 600-respondent survey.
We trust that you find this study valuable in identifying and capitalizing on trends in the China market, ensuring that you are
well placed to take advantage of the vast opportunities.
INTRODUCTION AND REPORT OUTLINE

12 CONSUMER ROLES FOR THE FUTURE: MAJOR FINDINGS
PERSONALIZATION
NEEDER
ASTUTE
PREMIUMISER
TRANSPARENCY
NEEDER
VIRTUAL
ESCAPIST
EXPERIENCE
SEEKER
CELEBRITY
WANNABE
SELF
IMPROVER
SETTING
CHANGER
GENDER
AGNOSTIC
ETHICAL
ADVOCATE
CONSUMPTION
NATIONALIST
CONNECTED
CAPITALIST
TAILORED
CONVENIENCE
QUALITY
STATUS
SAFETY
AUTHENTIC
ENTERTAINMENT
BELONGING
ENJOYMENT
SERVICE
AFFLUENCE
INFLUENCE
FULFILMENT
DIFFERENTIATION
INDIVIDUALITY
DYNAMISM
UNTRADITIONAL
SELF-EXPRESSION
VALUE-ALIGNED
SELF-BENEFICIAL
CONTRIBUTION
RECOGNITION
SOCIALITY
REWARD

01 | PERSONALIZATION NEEDER
Alibaba innovations and acquisitions in both the
digital and physical world has seen a consolidation of
user data. Alibaba platforms account for two thirds
of China’s $1 trillion+ ecommerce sales, over half of
its $9 billion mobile payments industry, and a host of
other touchpoints including social media, health,
video, travel, delivery, bricks & mortar retail,
hospitality and more. These touch points contribute
behaviour and preference profiles of individuals,
distilled into personalized services and
recommendations using advanced AI algorithms.
In late 2018 Alibaba rolled out a marathon training
app which allows users capitalize on big data to
provide personalized training programs and advice,
purchase recommendations and much more across
Alibaba’s platforms.
Each such initiative feeds Alibaba’s data mines,
contributing to better personalization across
Alibaba’s digital assets. Digital integration with
physical touchpoints and significant investments into
facial recognition also allows the company to
connect data and bring personalization to life offline.
Chinese consumers will expect service and products that
are tailored specifically for them, far from the the generic
propositions for 1.4 billion others of the past. That
offering will need to conveniently fit into that consumer’s
digital lifestyle. China’s broad embracement of connected
devices, complemented by relatively lax regulation and
attitudes towards privacy, will provide an ever-growing
chest of data that will be increasingly harnessed through
advanced AI algorithms to provide deep personalisation
for products and services online and offline.
HKers share similar desires and drivers
for personalization, but are less
comfortable with government and
companies holding personal data to
achieve this. No company is likely to
have the depth of data about HKer
that Alibaba or Tencent have for
Mainlanders in the foreseeable future.

02 | ASTUTE PREMIUMIZER
China’s domestic brands have been quick
to identify consumers’ increasing
willingness to spend more for quality. This
is reflected in improved quality control and
slicker branding across many Chinese
products and services. Even the value
Chinese consumers place on a basic carton
of milk highlights this.
One of China’s biggest FMCG brands,
Mengniu sells two main varieties of Pure
and Deluxe Pure. The two varieties are
similar, with the exception of different
packaging and 20% more protein in Deluxe
Pure. This packaging and protein sees the
Deluxe version sell for 89% more online
than the standard version. Despite being
almost twice the price, Deluxe Pure sells
53% more volume online.
China's rising affluence coupled with accessible information
and rising expectations will see Chinese consumers less
price-sensitive as they upgrade across most categories.
Consumers will be prepared to pay more for quality. A
general desire for a higher standard of living, safety and
experience will also factor in, with visible or sharable
products and services assisting in projecting status. Whilst
they will spend more trading up, Chinese consumers’
perpetual love of a deal will remain as present as ever.
Due to their maturity as consumers
HKers have a stronger drive to
upscale purchases, however
Mainland consumers are expected to
close this gap over the next decade.
Quality is a primary motivation for
both groups, however HKers
currently place more emphasis on
safety and experience.

03 | TRANSPARENCY NEEDER
Blockchain is at the forefront of this trend,
and can be seen in action in ZhongAn’s high-
tech chicken coop. The farm breeds its
chicken with the consumers in mind, and
offer data and reporting on the chickens that
is logged and secured by blockchain.
• Chickens are tagged with wearable tech
to track their exercise and movements.
• Monitors record air, water and soil
quality.
• When receiving the chicken, consumers
can scan a QR code and see all their
chicken’s details, down to birth date
and slaughter date, and even check-in
to live streams of the farm it was raised
in.
Chinese consumers inherent concerns about
product safety, authenticity and quality will drive
an interest in where they have come from and how
they have reached them. Comprehensive
information will be available through traceability
technologies that are convenient and mainstream,
driven by China’s large tech firms and consumer
brands.
Like Mainlanders, HKers view safety
as the primary concern. However
secondary concerns see HK worried
about brand reputation and product
origin, whereas Mainlanders are
worried about product authenticity
and scandals as a result of less faith
in the regulatory system. HKers also
see less value in a tracking app.

04 | VIRTUAL ESCAPIST
Through 2018 the mobile game Tabi Kaeru
took hold of China's youth. The gameplay
required them to dutifully prepare their frog
before he decides to go on holiday. And
when he does, they wait, and wait…until he
returns. Tabi Kaeru was a symbol of the
commitment to the virtual world that is
trending. Users would talk online about how
they couldn't sleep because they hadn't
received an update from their frog, others
would talk about how lonely they'd feel
when he was away.
The addiction got so comprehensive that the
government had to step in over their social
media channels urging users to "Enrich
yourselves, don't be a frog raising
youngster" - complete with 18 ways to do
so.
As China’s youth become increasingly disillusioned with
their lives, careers and opportunities at home, the appeal
of the virtual world and its rapid evolution will continue to
fill the void. Relaxation, relieving stress and killing time
will be as strong drivers as having fun. For China’s many
socially-shy only children, virtual activities also act as a
safe and comfortable place to be part of a community.
Spectating and celebrity worship will become a larger
dimension of the industry with e-sports likely to match
regular sports for participation and following.
HKers motivations for gaming are
mainly for hedonistic reasons,
whereas Mainlanders place more
emphasis on stress release and
relaxation. HKers are less likely to
believe the virtual world will
integrate with the outside
consumer world.

05 | EXPERIENCE SEEKER
Hema Fresh supermarkets was the first of an increasing
breed of retail chains offering a big-data driven, digitally
integrated ‘New Retail’ shopping experience for China’s
consumers, supported by interactive, convenient and
service-focused initiatives.
Hema utilizes Alibaba’s consumer data to determine
which products are best suited to a specific location,
including personalized recommendations, adding to a
more intuitive experience for customers. This is
enriched by complete app integration with the store,
supporting dynamic pricing and scannable barcodes
which provide deep product information. Purchases can
be delivered within 30 minutes, eliminating the need to
carry groceries, which is driving consumption away from
frozen to fresh food. Part of the experience includes an
integrated restaurant with open kitchen where
purchases can be cooked by trained chefs. Established
Hema stores generate four times the revenue per
square meter as the average supermarket in China.
Competing stores include magic mirrors that project
info when products are picked up and smart trolleys
that follow shoppers freeing up hands for shopping.
Hyper-competition will see brands needing to provide an
ever-richer experience to stand out. In the bricks &
mortar world, stores will increasingly work harder to
provide an experiential point of difference over
convenient online alternatives powered by rich personal
data and advancements in interactive technology.
Occasions that have previously been a chore, will become
enjoyable. This in turn increases expectations from
consumers for a richer experience in everything they do
from shopping, to fitness, hospitals, to travel.
HKers’ idea of a better experience has more
emphasis on instant gratification,
entertainment and ease of use. Mainlanders
place more importance on service, with a
focus on the complete customer journey.

06 | CELEBRITY WANNABE
Jiang Jinchun from the poverty
Stricken town of Zaotian has earned
himself tens of millions of followers by
sharing videos of himself drinking in the
woods. Online, he is widely known as “Lu
Zhishen” – which was the name of a
drunken monk from a classical Chinese
novel called ‘Water Margin’.
With the emergence of social media and
video sharing platforms, coupled with
increasing access and the decreasing cost
of internet; Jiang Jinchun was able to
develop his following on the popular video
sharing app Kuiashou
Interacting live with his followers, Jinchun
has been able to establish a successful
business selling his produce and products
through his channels. Jiang is part of a
growing phenomenon of farmers utilising
China’s new wave of digital media to
”harvest the commercial fruit of viral
videos” and make a living.
New digital platforms and integrated commerce features
will build on hugely-popular social media, short video and
livestream channels to further democraticize China’s
celebrity culture. This will allow an accessible pathway for
consumers to find fame, fortune and influence and a
legitimate career alternative. Increasing micro-OEM
manufacturing will allow these consumers to create a
plethora self-styled mini brands.
HKers and Mainlanders both
have affluence and good hours
as key drivers for becoming a
celebrity. The key difference is
Hkers seek fame, whereas
Mainland Chinese seek
influence.

07 | SELF-IMPROVER
According to the Chinese Athletics
Association, 1,102 running events took place in
China in attracting five million runners in 2017.
This was a 20-fold increase on the number of
events in 2014.
Marathons have exploded in popularity over the
past few years. According to reports, two months
before the Wuxi Marathon in March 2018; over
91,000 runners signed up for the ballot of 30,000
spots.
With over 100 million+ views of posts and images
citing #Wuxi #Marathon on Weibo, bragging about
accomplishments also appears to be somewhat
embedded in the self-improvement culture. This
has also been identified as a key factor at play in
China’s recent ‘fitness boom’.
China’s tech giants are riding the wave, utilising
individual’s data to create personalised
assessment, training programs and other services.
The desire for richer and more fulfilling lives, alongside
China’s hyper-competitive environment will drive
consumers to improve their skills proactively to stand out
from the masses. The pursuit of betterment will focus on
health, professional, practical skills, sports and fitness in
addition to a suite of niche desires.
Health is a key area of self
improvement for both HKers
and Mainlanders, however
HKers place much more
emphasis on mental health,
artistic and spiritual
improvements. Mainlanders are
more pragmatic, hoping to
improver their professional and
practical skills, however they are
expected to become more like
HKers over the next decade.

08 | SETTING CHANGER
• When receiving the chicken,
consumers can scan a QR code and
see all their chicken’s details, down
to birth date and slaughter date,
and even check-in to live streams of
the farm it was raised in.
YCloset is one of a number of platforms
embracing this advanced trend – its offering
is a partnership with hundreds of fashion
brands both global and domestic that
provide a subscription service to unlimited
clothes and accessories. For ¥499/month
users can rent clothes and then if
particularly fond, choose to purchase the
item outright.
Alibaba's extending credit system (Sesame
Credit) is key to this trend, not only
supporting YCloset - but opening up more
and more sharing services for those with
good credit ratings.
Similarly, Bingxi Culture allows art sharing
for rental durations as brief as one week.
Items include jade-studded bracelets to
modernist paintings of Buddha.
China’s dynamism will continue to speed up, further
driving Chinese consumers’ promiscuity towards new
trends and fads. China’s enthusiastic embrace of sharing
services will provide platforms for further fluidity as
consumers change their intimate surroundings and even
personal brands monthly or weekly.
HK currently has a lower
penetration of consumers
participating in the sharing
economy than the Mainland,
however their sharing
preferences are more
sophisticated with clothing, bags
and home furnishings having
greater penetration. Cost
effectiveness and trying
products they can’t afford are
key drivers in HK, whereas
convenience and environment
are important for Mainlanders.

09 | GENDER AGNOSTIC
This trend has roots in Korea and its broadly
embraced gender agnosticism and commercially the
male skincare/make-up market. The Chinese term
"little fresh meat" has been used to describe this
demographic, but it is in 2018 where the community
has truly emerged in relevance to marketers.
In 2018, 18 major cosmetics brands have switched
focus to a "little fresh meat" spokesperson - and for
many like L'Occitane have attributed their double-
digit growth to it.
Males born after 1995 buying beauty products
increased from 16.7% in 2016 to 42.9% in 2017
according to iResearch with BB cream, lip makeup
and eyeliner being favourite products.
Training camps to help boys find “their lost
masculinity” have been set up for concerned
parents, however the government's inevitable
contempt of this trend – has seen a publish backlash
such as when the government used the term "sissy
boys” in state media.
In a very traditionalist society, young people in China will
increasingly feel comfortable being 'a bit different',
bucking off stigmas and living in a way which suits them.
One of the signs of this will be the gender-fluid products
and services where Chinese males will account for a large
share of products traditionally purchased by females and
vice versa.
HKers appear more traditional,
and are less likely to believe
social norms will become more
fluid and driven by consumers.

10 | ETHICAL ADVOCATE
Sustainability initiatives are currently a nascent
trend in China, however one of China’s leading
smartphone and smart appliance brands Xiaomi
started its annual Green Service Month in March
2017. This has seen around 2.2 million participants
to date. Initiatives include:
• Reducing phone waste by free cleaning and
testing of existing mobiles
• Free maintenance services with proof of public
transport or bicycle use
• Discounts for trading in old mobiles
• ‘Saving time is saving energy,’ encouraging
customers to make service reservations online
to receive gifts
• Consumers were encouraged to share their
own ‘green’ behaviour such as walking to the
subway station; cycling; old phone recycling;
recycling old clothes, planting trees, reading
more e-books, bringing own shopping bags.
Although China has been behind western countries with
ethical and sustainability-driven purchases, younger
consumers will increasingly favour brands that are ethical
and eco-friendly, motivated by both changing consumer
value sets and government policy. Products and services that
have broadest appeal will be those that impact personal
health, particularly small-ticket items. Brands that align to
individual values and are socially responsible are also
increasingly important.
HKers are less likely to believe
environmental protection is
important, perhaps the result of
being exposed to less
degradation. The clean tech
products they are most likely to
desire are home appliances,
mobile tech, fashion and
entertainment, whereas
Mainlanders are more
concerned with smaller items
such as food & beverage, health,
cosmetics and other FMCG.

11 | CONSUMPTION NATIONALIST
• When receiving the chicken,
consumers can scan a QR code and
see all their chicken’s details, down
to birth date and slaughter date,
and even check-in to live streams of
the farm it was raised in.
When considering the role of nationalism in
purchase behaviours in China, it is difficult to look
past the Dolce & Gabbana Scandal in late 2018.
In anticipation of a US$12M fashion show, D&G
released a commercial widely regarded to be
racist, in which a model was shown trying to eat
pizza with chopsticks.
In the fallout of this, screenshots of a private
message thread between a popular Chinese
fashion blogger and D&G co-brand founder
Stefano Gabbana surfaced showing a racist tirade
against China.
The widespread outrage led to a boycott of the
brand across China under the ‘Not Me’ slogan (in
reference to the ways in which Gabbana described
Chinese people). D&G’s fashion show was
cancelled and major retailers across China
(including Tmall and JD) removed the brand from
all stores.
Increasingly aware of China's place in the world,
consumers' pride in their country will continue to extend
through their purchases – with a strong preference to
buying Chinese brands when their function, safety and
quality is equal to that of foreign brands. Food &
beverage, financial services, daily necessities, pet
products and home entertainment are the categories
with the greatest China-preference. Cosmetics, mum &
baby, automotive, fashion and cleantech currently see the
greatest preference for imported brands, but local brands
will increasingly close the gap.
HKers have a less positive
perception of Chinese products:
2.79/5 versus Mainlander’s 3.77/5.
This is due to its British history,
open economy, internet and
markets, HKers view the outside
world more openly. Many also view
Mainland China as a threat to their
unique culture and way of life.

12 | CONNECTED CAPITALIST
China’s digitally connected consumers will become an
engine of exchange allowing increasing social commerce
integration into apps and platforms. Brands and retailers
that tap into China’s entrepreneurial spirit in fun,
customizable and culturally-sensitive ways will capitalise
in cost-effective and trusted advocacy.
In mid 2018 online coffee retailer Coffee Box
launched a service allowing individuals to
open a virtual café within their WeChat mini
program and then share offerings on
WeChat’s social feed. Users could stamp
their own mark on their virtual store by
decorating the café, selecting offerings and
editing product descriptions, etc. ‘Store
owners’ encouraged their social networks to
visit their stores, with coffees delivered to
purchasers. Owners received free coffees as
rewards.
On its first day, 520,000 cafés were opened
with 10% of them making sales. Celebrity Li
Dan sold 596 cups on that day with ordinary
consumers selling as many as 200 cups.
HKers are less likely to take
part in social commerce, with
an average appetite of 2.91/5
versus 3.17/5 likely to
participate in the Mainland.
Whereas this model is most
tempting for Mainlanders in
daily necessities and food,
HKers are most attracted to
entertainment, travel and
home appliances.

DEEP DIVE: SEAMLESS SHOPPING EXPERIENCE
China’s ever-more discerning consumers’ expectations for a seamless
shopping experience will become less forgiving, with little tolerance for
inconsistent services across online and offline. Consumers will expect the
experience to be tailored to their individual needs, preferences and history
and fun! Brands will need to view customer journeys over the lifetime of
the relationship with consumers, rather than one-off purchases. Enabling
this will be working closely with B2B partners such as retailers, distributors
and online platforms to ensure the B2C experience is seamless.
Current factors which are the most important to your consumer experience?
55,2%
54,3%
46,7%
40,8%
37,3%
28,8%
21,2%
19,8%
19,6%
16,5%
Post Purchase Service
Customer Service
Ease of Use
Ease of Purchase
Privacy
Personalisation
Instant Gratification
Trail / Samples
Loyalty Recognition
Information
How important is it that you have a complete customer experience, as opposed to
simply purchasing a product?
14,2% 50,9% 32,8%
MOST RELEVANT
CONSUMER ROLES
PERSONALIZATION NEEDER ASTUTE PREMIUMISER
TRANSPARENCY NEEDER VIRTUAL ESCAPIST
EXPERIENCE SEEKERSETTING CHANGER
ETHICAL ADVOCATE CONNECTED CAPITALIST
Neutral Important Very Important

DEEP DIVE: FUTURE OF ENTERTAINMENT
China’s tech giants like Tencent, Alibaba, Baidu, NetEase and
ByteDance are consolidating the gaming, film, media and music
industries through innovation and acquisition. Their outputs will be
increasingly driven by big data and AI algorithms. Content themes
will become more China-centric as nationalism rises and Chinese get
more comfortable with and competent at producing native content.
Deployment will be more digital, personal, customizable and used to
build digital communities with shared interests. Expect commerce to
be seamlessly integrated into more entertainment. VIRTUAL ESCAPIST
SETTING CHANGER
GENDER AGNOSTIC CONSUMPTION NATIONALIST
CELEBRITY WANNABE
Current motivations for gaming from China’s gaming-obsessed population
68,5%
62,3%
43,3%
42,0%
18,5%
15,2%
15,2%
14,4%
10,7%
6,2%
To Relax
To Relieve Stress
To Kill Time
For Fun
Out of Boredom
To Socialise
Friends are Playing
Interest in Fantasy World
To Meet New People
As a Distraction
EXPERIENCE SEEKER
PERSONALIZATION NEEDER ASTUTE PREMIUMISER
MOST RELEVANT
CONSUMER ROLES

DEEP DIVE: PERSONALIZE IT!
China is well placed to apply personalization en scale. It has the key ingredients to
support the Artificial Intelligence required to support mass personalization
including the deepest and broadest user data on consumers consolidated across a
small number of well-resourced companies. Positive consumer attitudes towards
personalization and use of personal data, and supportive government programs
through regulation and investment, will also drive this personalization.
China presents more applications for personalization than any other market due to
high digital usage, high penetration of smart devices from appliances to cars and
enthusiastic embracement of digitally assisted sport, health and entertainment.
Liberal regulations around genetic sciences presents opportunities as far reaching
as individual genome customization and pin-pointed health treatments
PERSONALIZATION
NEEDER
ASTUTE
PREMIUMISER
VIRTUAL
ESCAPIST
SETTING
CHANGER
GENDER
AGNOSTIC
CELEBRITY
WANNABE
Top-10 current sectors consumers are most likely to seek personalized products or services
CONNECTED
CAPITALIST
SELF
IMPROVER
EXPERIENCE
SEEKER44,8%
42,9%
33,5%
33,3%
24,3%
22,6%
22,4%
21,2%
20,3%
19,3%
Sport & Fitness
Travel
Finance & Investment
Health Related
Education
Daily Necessities
Home Décor
Cosmetics
Fashion
F & B
MOST RELEVANT
CONSUMER ROLES

DEEP DIVE: CONSUMER CLEANTECH
China’s cleantech awareness and purchases is lower than most Western markets, however
there are signs of a nascent trend that will blossom over the coming decade. E-commerce
giant JD.com analysed 2017 data from its 266 million shoppers looking at ‘green products’
from household appliances to clothing and food, factoring claims such as recyclable materials,
energy efficiency and environmental protection. Sales of green products for the category
increased 71%, 50% more than the general category increase, and accounting for 15.1% of
sales overall.
It is worth noting that the primary reason for green purchases can not always be attributed to
environmental and ethical values. China’s EV market is a good example, where it has become
the largest market in the world due to generous government subsidies and the availability of
rare license plates for the vehicles, which have been bigger motivators than sustainability.
Nevertheless, there will be increasing consumer sects who place importance on cleantech
and brands will meet this demand to the point of it becoming a hygiene factor, rather than a
differentiator. Products that personally benefit individuals will hold greatest appeal, with ‘the
greater good’ remaining a secondary appeal as the mentality that ‘what can 1 of 1.4 billion
do? It’s the Beijing’s role,’ still holding true, although less so than in 2018.
PERSONALIZATION
NEEDER
ASTUTE
PREMIUMISER
Top-10 current sectors consumers would pay a premium for if they incorporated clean tech
SELF
IMPROVER
47,9%
43,9%
43,4%
38,0%
37,0%
35,9%
33,5%
29,7%
24,1%
23,6%
Daily Necessities
Clean Tech
F & B
Health
Cosmetics
Home Appliances
Automotive
Home Décor
Mum & Baby
Sport & Fitness
TRANSPARENCY
NEEDER
ETHICAL
ADVOCATE
CONSUMPTION
NATIONALIST
MOST RELEVANT
CONSUMER ROLES

DEEP MOTIVATIONS AS DRIVERS OF FUTURE OPPORTUNITIES
20
Consumer Roles Motivators Opportunities & Actions Business Trends
Personalization
Needer
Tailored
Convenience
• How can we integrate our and partners’ data to create
products, services and experiences tailored specifically
to consumers functional and emotional needs?
• How can we better understand our target market needs
and behaviour to ensure our delivery is seamless, fast,
easy and digitally integrated?
• Seamless Shopping
Experience
• Future of
Entertainment
• Personalize it
• Consumer Cleantech
Astute
Premiumizer
Quality
Status
• How can we create products that deliver a better
perception of quality than the vast array of competitors,
standing out for craftsmanship, safety, taste, feel and/or
experience?
• What characteristics does our visible or sharable
product or service have to ensure its projects success,
in-the-know, strong values or individuality?
• How can we factor incentives to purchase into our
pricing model to play to the Chinese love of a deal?
Experience
• Future of
Entertainment
• Personalize it
Transparency
Needer
Safety
Authentic
• What systems and technologies can we incorporate into
our touchpoints to assure consumers what they are
buying is safe and everything we have promised?
• How can we guarantee to customers they are buying
our genuine goods and services, to seamlessly align
with how they research and purchase?
Experience

21
Virtual Escapist
Entertainment
Belonging
• How can ensure our products, services and marketing
align with Chinese love to escape to a virtual world,
connecting through entertainment but also relaxation,
stress relief and to kill time?
• What can our brand do to facilitate connecting consumer
tribes in virtual communities and convert this to
preference, sales, loyalty and advocacy?
Experience
• Future of
Entertainment
Experience
Seeker
Enjoyment
Service
• From mundane tasks to rich experiences, how can we
use data, digital technology and good old-fashioned
traits to ensure the customer has a fun, thoughtful and
personalised experience at each touch point
• How can we ensure that the entire pre-to-post service is
intuitive, enjoyable and aligned with consumer research,
purchasing and usage behaviour and preferences?
Experience
• Future of
Entertainment
• Personalize it
Celebrity
Wannabe
Affluence
Influence
• How can we service influencers who seek to capitalize on
their fame, by either partnering with our products and
services, or providing OEM-type offerings that capitalise
on their platforms?
• What can we do to encourage and support consumers
desire to influence our brand’s offering and encouraging
them to share this contribution?
• Future of
Entertainment
• Personalize it

22
Self Improver
Fulfilment
Differentiation
• How can our products, services and marketing
directly or indirectly speak to a consumer’s desire to
feel like they are becoming better, healthier or more
fulfilled?
• What can we offer through our products, services
and marketing that enables consumers to acquire
new skills and interests that sets them apart
professionally, socially, culturally or spiritually?
• Personalize it
Setting Changer
Individualism
Dynamism
• What can we do to meet the needs of a consumer
who is seeking to project their individual traits,
personality, values and tribe, while remaining
uncommittable to permanent objects and
surroundings?
Experience
• Future of
Entertainment
• Personalize it
Gender Agnostic
Untraditional
Self Expression
• How do we identify which long-held Chinese
traditions and roles are being challenged by
consumers and meet those needs though products,
services and marketing?
• How can we tap into the growing need for
consumers to feel themselves when connecting with
the purchases they make, experiences they have
and marketing that resonates?
• Future of
Entertainment
• Personalize it

23
Ethical Advocate
Value-aligned
Self-beneficial
• How can we ensure our products, services,
marketing and company culture are aligned to
values adopted by consumers and ideally Beijing
mandates?
• What can we do to ensure our cleantech primarily
benefits an individual’s health, safety and feel-good
factor, while servicing the greater good as a
secondary function?
Experience
Consumption
Nationalist
Contribution
Recognition
• How can make our products and services
authentically play to Chinese consumers’ desire to
contribute to the betterment of the nation of China?
• How can we ensure that our products, services and
marketing recognizes and respects China’s often-
sensitive modern view of itself?
• Future of
Entertainment
Connected
Capitalist
Sociality
Reward
• How can we tap into China’s unrivalled digital
connectedness and openness from both an
advocacy and a commerce perspective?
• What can we do to reward advocacy through
financial and other incentives that are culturally
appropriate?
Experience
• Personalize it

HOW DO CONSUMERS DIFFER IN HONG KONG VERSUS THE MAINLAND?
Many of the consumer habits in Hong Kong and the Mainland originate from similar drivers, but given the different stages of
maturity coupled with deeper outside influences and differing regulation, there are some clear differences between consumers in
the two groups
MARKET TRUST – Hong Kongers have a higher trust in their market and system which is
reflected in:
• Their belief that future problems will arise from upstream factors such as brand
reputation (50%) and product origin (47%), whereas Mainlanders are more likely to be
concerned about downstream issues such as authenticity and scandals (both 51%).
This indicates a lack of trust (for Mainlanders) in the market to regulate and weed out
potential issues.
• HKers also place little trust in the Chinese market compared with Mainlanders.
Mainlanders have a 60% confidence rating in Chinese produced products, while HKers
only have 13% confidence. This level does not waver across the spectrum for HKers,
however for Mainlanders confidence varies greatly from high confidence (86%) in F&B
to low confidence (12%) in domestically produced cosmetics.
ENVIRONMENTAL STANCE – due to Mainlanders constant exposure to poor environmental
conditions, their consumer behaviour is likely to reflect this.
• Hongkongers only place a 75% importance level on environmental protection,
compared with 85% on the Mainland. 52% of Mainlanders would purchase domestic
clean tech, while only 9% in Hkers would and this is perhaps why HKers are prepared
to pay slightly more for clean tech.

ADAPTABILITY - HKers are more mature as a consumer group and thus more set in their
consumer habits.
• Both HKers believe traditional consumer roles are likely to become more fluid, they
do less so than Mainlanders believing they will remain relatively traditional.
• Mainlanders are also one and a half times more likely to have recently taken part in
the sharing economy, and as a new commercial model, this shows that Mainlanders
are more adaptive to new trends than those in Hong Kong.
UNDERLYING DRIVERS – in certain circumstances the drivers behind consumers decisions
between Mainlanders and Hongkongers show a clear divergence.
• Many of the purchase decisions made by Mainlanders still appear to be driven by
tangible benefits or appearance.
• Self improvement for Mainlanders and HKers is dominated by health, but beyond
that, Mainlanders are looking again for applicable skills such as professional skills,
practical skills or improving their sport and fitness. Those in Hong Kong however,
place much more emphasis on less overt aspects such as improving mental health
and artistic endeavours. We expect this gap will narrow over the next decade.
HOW DO CONSUMERS DIFFER IN HONG KONG VERSUS THE MAINLAND?

PERCEPTIONS OF FINLAND
Analysing social media commentary and sentiment found Chinese consumers are largely unfamiliar
with Nordic countries and thus, perceptions of Finland are often indistinguishable from general
perceptions of Scandinavian countries. Nordic goods are still considered as niche and even large
brands such as IKEA and H&M are not associated with Sweden.
The general perception of the Nordic states is that everyone is free, equal and enjoys high degree of
social welfare and government support. Nordic countries are venerated for their free public medical
support and education as well as long annual holidays and leave entitlements. The lifestyles are seen
to be slow; standing in stark contrast to hurried and busy lifestyles in China.
The biggest personality trait that Chinese people associate with Finnish people that they are
relatable and inspire feelings of kindness, friendliness and humbleness. This character persona also
corresponds to Chinese perceptions of the Nordic style; which evokes connotations of sexual apathy,
simplicity, minimalism and breathtakingly beautiful, far north, wild and cold landscapes.
Finland specifically is widely regarded by a number of Chinese media outlets to be the most
environment friendly country in the world; boasting innovative clothing and design industries which
prioritise sustainability.
As a growing number of Chinese tourists venture to Finland to experience the Northern Lights, it is
becoming an increasingly popular ‘Mono Destination’. This refers to a growing trend in China
whereby Free Independent Travelers are increasingly opting to spend 10 days in one spot to truly
experience the culture and lifestyle, as opposed to the same time in 10 different locations.
KEY ASSOCIATIONS
=
Northern Europe (北欧)
Instagram style (Ins风)
Sexually Apathetic (性冷淡)
Modern (现代)
Wood (原木)
Simplicity/Minimalism (简约)
Aurora Borealis
Fairy Tale (童话)
Small/Fresh/Artistic/Indie (清新文艺)
Tall and Blonde
High Social Welfare
Expensive
Salmon
Aspirational
Lifestyle
Clean
Tech
Home
Décor
Sustainable
Products
Safe
Products
Fashion &
Design
Products &
Services
Modern
Tech
Cool &
Unique
Survey respondents in HK and the
Mainland shared similar perceptions
of Finland, however HKers considered
Finnish products safer and more
modern. Main characteristics run from
left to right based on association.

PERCEPTIONS OF
FINLAND
Aurora Borealis
& Nordic Nature
Finland is the first country Chinese
people associate with Northern
lights. Snow is a big part of the
experience as well. Many people
who share travel notes online are
quite often from the southern
parts in China, therefore seeing
the snow is a big motivation for
them. Dressing is a big concern
since many tourists aren’t familiar
with the climate. They also often
recommend certain items (e.g.
Canada Goose, Timberland )
Furniture &
Home Decor
Following the
influence of IKEA,
cheaper but stylish
Nordic style furniture
is heavily sought in
China. When
searching “Northern
Europe (北欧) across
Chinese social media,
more than half the
results are home
décor and furniture
related.
Cultural Influence
Nordic Television is becoming increasingly
popular in China. Moomin is rather popular
among Chinese young generation, especially
for people who are into “cute” culture. Many
Chinese people love using Finnish-style
background pics for their phone screen or
computer, or phone cases, etc. Nordic style
images by Nordic illustrators are often used.
Beyond this, Finland is also renowned for its’
heavy metal and pop music.
(MAINLAND
CHINA)
Similarly to home & décor,
Nordic Fashion Style,
though non-specific to
Finland is a big segment.
People tend to think this
style is Minimal and Cold
but High Fashion. Sweden
is the clear fashion leader
amongst Nordic countries.
Popular Nordic brands
include COS, Arket, Acne
Studios, & Other Stories &
Cheap Monday
Design & lifestyle
Fashion
Rovaniemi
Santa-Clause
Village
Many Chinese are seeking unique
experiences, notably the Ice
breaker cruise in Rovaniemi, The
Sampo Cruise, husky / reindeer
rides and Finnish Saunas. Many
recommend reindeer and elk meat
as well as Michelin restaurants.
Adventurous FITs also seek out
snow sports (skiing, skating).
High-end & novel hotels (charging
exorbitant amounts) are also
becoming an increasingly popular
way of experiencing Finland’s
attractions as well.
Tourism & Travel
Shopping
Luxurious shopping is shared on social
media by luxury travellers often giving tips
about where to get cheaper goods. Finland
has a high tax return and is seen to be a
convenient shopping destination due to the
availability of Alipay and Chinese language
services. Many predominantly female
travellers are seeking out niche products
and often drafting shopping lists prior to
departure.
Key Associations by Relevance to Mainland China Market
Rovaniemi is a hugely
popular destination for
Chinese. Five standard things
for Chinese tourists to do in
the village are: 1. take a
photo with Santa;
2. Visit Santa’s Salmon Palace
(ranked No.1 on
TripAdvisor),
3. Send postcards to China;
4. Cross arctic circle and get
passport stamped, and;
5. visit the world’s most
northern McDonald’s.
Unique Finnish
Experiences
Study
Abroad
Chinese students are
becoming increasingly
interested in studying
in Nordic countries in
the following order:
Sweden, Finland,
Denmark, Norway and
Iceland. Studying in
Scandinavia particularly
appeals to students
interested in design,
technology and
engineering.
Clean
Technology
Finland is renowned for
being environmentally
friendly and a global
leader in sustainability
innovation. Many travel
/ education agencies in
China offer
“Environment friendly”
themed summer camps
for Chinese students.
Many Chinese
businesses and adults
will visit Finland for
similar motivations.

PERCEPTIONS OF
FINLAND
Christmas
& Santa Clause
Most people in HK will think of
Santa when being asked about
Finland, partly due to the
Rovaniemi Santa Clause park.
Stanley Plaza in HK 's Christmas
market promoted Finland-related
themes in 2017 and 2018. The
market also provides Finland food
such as Venison hotdog, Aurora
candy cup, Finland sausage. Even
has photo booth was decorated as
a Finnish Sauna.
Style &
Design
The Nordic style is seen to be
simple, practical, environmentally
friendly and world-renowned.
Nordic design companies have
opened studios in Hong Kong
due to its extensive business
network, and strong commercial
infrastructure. To HK consumers,
home design/decor style from
Nordic countries are increasingly
popular.
Super Park
Superpark – the Finnish all-in-one
indoor activity park is widely
popular in Hong Kong. Super Park
came to HK in 2017 and offers a
wide variety of indoor
entertainment activities for all
ages. Superpark also came to
Suzhou, China in August 2018, and
attracted attentions from lots of
Chinese parents.
‘Finland
Jacuzzis’
Sauna is also translated as
"Finland Jacuzzi” (芬蘭浴) in
HK, which is different with
Mandarin translation of
Sauna. For Hong Kong
Citizens, Finland saunas are
regarded to be a must-try
when travelling to Finland.
Shopping:
Pop-Up Stores
Finnish Pop-up stores are very popular in
HK. Events are shared and discussed
readily on social media. Notable Finnish
pop-up stores recently included Moomin
Cafe (2015), Kauniste, Ivana Helsinki and
Lovi Design (2016), as well as Finlayson™
(2017).
Shopping:
Daigou Overview
Finnish-based Daigous (shoppers in
Finland who buy on behalf) generally
supply the HK market via WhatsApp
and Facebook. Key categories include
Cosmetic, Mother & Baby, Glassware &
Design, Chocolate.
Finland Travel
Finland Tourism is widely discussed
on HK social platforms. July to
September is a popular tourism time
due to hot, humid weather in HK.
Simultaneously, September to April is
popular as this is Aurora Borealis
season. Hong Kong locals generally
choose to travel during the Christmas
season to check out the Glass igloo in
Rovaniemi and appreciate the
festivities.
(HONG KONG)
Key Associations by Relevance to HK Market

China has accounted for 45% of global GDP growth since 2008 and is likely to
continue to make up a large share of growth over the next decade. This
growth will drive more consumers – particularly from lower tier cities - into
the middle to affluent classes, giving them the ability to make more
discretionary purchases such as Finnish goods and services.
Yet these consumers will have their own unique needs, tastes and identities,
which is why it is important to understand their needs, passions and
preferences, and the trends that are driving their behaviour. We hope this
report has assisted with this.
In many ways Hong Kong is becoming more like China, due to political
pressure, the increasing reliance on Mainland China and a coming of age of
Chinese brands and culture holding more appeal to consumers.
Nevertheless, Hong Kongers – especially their young – are particularly
staunch in holding on to what gives Hong Kong its unique identity so it is
wise approach them as quite separate markets.
We wish you all the best in effectively tapping into these opportunities!
LOOKING AHEAD

Title: Future Watch Report on Future Consumers:
Insight into Mainland China & Hong Kong
Keywords: China, Hong Kong, Consumers, Trends,
Future Watch
Information: This report contains a deep insights into 2-
10 years trends into Mainland Chinese and Hong Kong
consumers, fast becoming the most important
consumers globally. The report builds on 12 key
consumer roles, some which may be familiar, some
unique, but each with a uniquely China angle covering
China preferences and behaviour. The highlights the
questions Finnish businesses should be asking when
targeting Chinese and HK consumers to ensure they are
relevant and resonant. To bring context, the report also
covers Mainland Chinese and HK perceptions of Finland
and the Nordic region.
Case Studies: The 12 consumer roles are brought to life
with cast studies including Alibaba, Mengniu, Zhong’An
Technology, Journey Frog, Hema, Kuaishou, Wuxi
International Marathon, Y-Closet, L'Occitane, Xiaomi,
Dolce & Gabbana and Coffee Box.
Sources:
https://www.thedrum.com/news/2018/08/20/china-e-commerce-market-forecast-reach-18tn-
2022
https://www.wsj.com/articles/chinas-mobile-payment-boom-changes-how-people-shop-borrow-
even-panhandle-1515000570
https://www.bloomberg.com/news/articles/2018-12-05/billionaire-jack-ma-adopts-moneyball-
approach-to-china-sports
China Skinny e-Commerce Analysis
http://ag.alltech.com/en/blog/flocking-digital-future-poultry-technology
https://www.abacusnews.com/digital-life/china-finally-gets-its-own-version-hit-japanese-frog-
game/article/2140033
https://www.alizila.com/hema-supermarket-offers-shoppers-new-retail-experience/
https://www.techinasia.com/farmer-kuaishou-videos-sell-produce
https://www.telegraph.co.uk/news/world/china-watch/sport/marathon-running-in-china/
https://www.scmp.com/lifestyle/health-wellness/article/2144183/chinas-fitness-revolution-
young-women-getting-gym-body-and
https://technode.com/2018/11/12/art-sharing-platform-sesame-credit/
https://www.chinaskinny.com/blog/sissy-boys-and-other-challenges-with-chinas-male-gene-pool/
https://www.mi.com/global/about/environment/
https://www.scmp.com/business/companies/article/2176735/dolce-gabbanas-brand-image-
takes-hammering-chinese-consumers
https://www.qsrmagazine.com/marc-halperin/3-coffee-trends-restaurants-capitalize
https://www.freshfruitportal.com/news/2018/01/25/chinese-consumers-increasingly-embrace-
green-products-claims-jd-com/
http://fortune.com/2018/07/10/tesla-deal-build-second-plant-china-largest-electric-vehicle-
market/
REPORT OUTLINE & SOURCES

Future Watch: Consumer trends in China and Hong Kong

Future Watch: Consumer trends in China and Hong Kong

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