ABSTRACT
This chapter examines the complexities that need to be addressed if the Chinese market is to be understood. Variations in geography and climate, ethnic, cultural, religious and historical differences, coupled with economic and development disparities, mean that China is not a single market but rather a patchwork of fragmented markets and consumer segments. In a 2012 consumer survey a comparison of two clusters of smaller low-tier cities in China showed striking differences in both socio-economic development and consumer behaviour. It is important to remember that there are considerable regional and generational differences when it comes to the impact of Chinese culture on consumer behavior. Before Internet shopping, significant differences across the marketing mix could be found between rural and urban Chinese consumers, reflecting different values and life styles. According to the Boston Consulting Group the future of China's consumer market will be shaped by three forces: upward socio-economic mobility, a generational shift, and an explosion of e- and m-commerce.
