Chinese Moms Are the World’s Most Important Consumers

Chinese Moms Are the World's Most Important Consumers

The big China consumer stories of the past year have included a vaccine scandal, food contamination scares, surging overseas home buying, and continued rising consumption by urban families.

These stories, in reality, are mostly about Chinese women as an ascending consumer class. More specifically, they are about Chinese moms, who are quickly becoming the most important consumers on the planet.

My argument for this is five points:

    Point #1: Chinese mothers are the major driving force behind increasing Chinese household consumption.

    There are an estimated 320M moms in China, making them roughly the same size as the entire US population. And they are the trifecta of Chinese consumer spending.

    First, Chinese mothers have their own personal spending power and typically contribute 50% of the family income.

    Second, they direct household spending. In a 2010 MasterCard report, 75% of Chinese women said they control the family spending. This can be the wife approving expenditures above a certain level. And in some cases, Chinese wives control the bank accounts and then give the husband cash to use. The standard joke is the husband buys the home but the wife runs and furnishes it.

    Third, Chinese mothers often control the spending related to the retired parents. This is particularly true for the larger expenditures such as housing and medical costs.

    So in many families, Chinese moms are effectively directing the spending across three generations.

    Point #2: Chinese mothers are deeply focused on the health and safety of their one child.

    Family spending control by mothers is not unusual globally. But in China it is amplified by the one-child policy, the prevalence of “little emperors” and the greater health and safety concerns of living in China. We see Chinese moms being far more concerned with the health and safety of their one child – from the water they drink, to their food, to their education, and to their general safety.

    One interesting result of this is the different advertising for women seen in China today. In the West, we see often ads for women speaking to independence or fun. However, in China we see a focus on happy and healthy families. For example, in 2013, McDonalds China launched a “Moms’ Trust” campaign which not only highlighted healthy children but also focused on long-lasting relationships. This is a contrast to fast food commercials in the U.S. which typically express fun and good food. China’s fast food commercials tend to emphasize long-lasting relationships and strong family values.

    On the Chinese McDonald’s website, you can even find sections such as “Mom’s standards, our standards” and “We care for how healthy our chicks grow”.

    Point #3: Chinese mothers are rising as consumers in their own right.

    Chinese mothers (and women generally) are important consumers in their own right. As mentioned, they typically contribute 50% the family income. And by most measures, they are more financially ambitious than women in virtually any other country. Go into any office building in Shanghai and you will see a sea of cubicles filled with white-collar Chinese women, most of whom also have a child at home. For example, the photo at the top of this article is of Ms. Xin (and her super-cute daughter) who works in the administration of Peking University (thanks for pics :).

    However, the personal wealth of Chinese women is increasing due to advancing careers and the delaying of marriage and children. For example, the number of high school students in China going to college is expected to reach about 40% by 2020 (up from 10% in 2010). But going to college (and then getting a good job) usually means delaying marriage, family and other commitments. In the past ten years, the average age at which women have children in China has increased from 24 to 27. And it will soon be closer to 30, which is similar to most developed countries.

    One consequence of this delaying of life events is greater wealth. By the time women do marry and have children in China, they have more money and higher incomes. So Chinese moms are going to have more money to spend even before they become the primary financial decision-makers of the household.

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80% Who Know About Ad Blocking Use It

80 percent of those who know about ad blocking use it
To some, ad blocking is a mortal threat to publishers. To others, it is an overblown fad. More evidence is mounting that ad blocking is more nuisance than existential threat today, but that could easily change.

A new survey of users found that only 41 percent of those surveyed were aware of ad blocking. But among those who are aware of it, 80 percent block ads on desktop and 46 percent do so on smartphones, suggesting it’s just awareness that’s holding back higher ad blocking adoption. And among those blocking, roughly half said they planned to ad block as long as they can.

The survey is part of a report, “Decoding The Adblocking Consumer,” by Midia Reseach, a London-based media research and consulting firm. It was done in March and is based on 3,600 respondents age 16 and up in the U.S., U.K., Brazil, Australia, France and Sweden.

The survey of ad blocking consumers also found that only 17 percent of desktop users would whitelist a site if politely requested to do so. But fully 28 percent said they’d stop visiting a site if they’re denied access — a move that could potentially cost the publisher an important audience segment. (Respondents were asked to select sentences that applied to them, so numbers don’t add up to 100 percent.)

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4 New AdWords Features That Will Make You Money

For companies today, mobile isn’t just important–it’s essential.

4 New AdWords Features Will Make You Money
How many hours each day do you spend on your smartphone? Whether you’re checking your email, searching for a business, or reading the latest stories from Inc., most of us are constantly connected.

We’ve long since passed the time when mobile was a “nice to have” for businesses. Are you doing all you can to attract and convert mobile searchers when they’re looking to find a business fast? A mobile marketing strategy is a must if you want to reach consumers in today’s digital world and grow your revenue and profits.

Google has unveiled four powerful new AdWords features that will help businesses reach consumers whether they’re ready to buy something or go somewhere. Read on to discover how you can use them to make more money and grow your business.

Why is Google Making These Changes?

Google says that “trillions” of searches are conducted every year on Google.com globally (Google didn’t provide a more exact figure – and the last official figure Google revealed was 100 billion searches per month in 2012, or roughly 1.2 trillion per year). But more than half of those searches are being done on mobile devices.

Google actually began the process of rethinking its search results and ads earlier this year, with a goal of creating a more unified experience for its users across devices. Our first glimpse of the future came when Google removed text ads from the right side of search results and added a fourth ad spot to the top of results for highly commercial queries.

But now Google has completely re-imagined advertising for a mobile-first world.

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