One in four shoppers know the prices of all the items regularly purchased and half of key city shoppers and 44% of non-key city shoppers know the prices of most items.

As China slowly but surely eases out of the economic recession, Chinese consumers have changed their shopping habits. In order to thrive in this new economic environment, understanding the latest shopping trends is critical for success.

Shopping frequency is on the rise
Along with the economic recovery came an increase in the frequency of shopper visits to most modern trade and traditional trade channels. Additionally, the slight rise in food prices in 2009 resulted in a 14% year-over-year increase in spending on food, groceries and personal care products in key cities. The increase in food prices, however, had a negative impact on snacks, confectioneries and drinks, as roughly one-third of shoppers indicated they have purchased less of these items.

Chinese shoppers are habitual and highly sensitive to promotions and pricing
More than half of shoppers in a recent Nielsen study said they tend to visit the stores they shop in regularly and the ones that are geographically closest to their homes. However, recommendations from friends, colleagues or relatives along with attractive deals promoted in newspapers or flyers were influential for one in five shoppers.

A change in the economic climate has increased shopper’s sensitivity to both promotions and prices. In fact, one-third of shoppers in both key cities and non-key cities actively search out promotions within their regular store, one-fourth buy different brands because of promotions and one-fourth of non-key city and one-fifth of key city shoppers will change the store they shop to find the best promotions.

About one in four shoppers know the prices of all the items regularly purchased and half of key city shoppers and 44% of non-key city shoppers know the prices of most items.

Private label acceptance is growing in China.
Private label has come along way in recent years and support of the retailer brand continues to grow more positively each year. And while non-key city shoppers are more accepting compared to key city shoppers, the overwhelming majority of key city shoppers recognize private label as a worthy choice. Fully 64% of key city shoppers believe that private label quality is just as good as leading brands.

Most shoppers still believe, however, that branded products are superior. Sixty-four percent of key city shoppers and 74% of non-key city shoppers say that private label products may be cheaper, but overall, manufacturer branded products are a better value for the money.

Private label image is still an issue for most shoppers as 60% think private label products are only for those on a serious budget. Retailers have an opportunity to improve perceptions as well as better market their brands as 64% say they don’t know enough about private labels to make them switch from their usual brand.

Competition is fierce.
The China retail environment is becoming increasingly competitive and retailers need to contend for share of wallet with increasingly fickle consumers. Nielsen’s Shopper Trends study provides h a comprehensive overview of the retail environment and insights to help manufacturers understand today’s Chinese consumer shopping habits; the brand equity of retailers; and opportunities for future growth.

Note – For the purposes of this study, “key cities” included Beijing, Shanghai, Guangzhou, Shenzhen, and Chengdu.  “Non key-cities” included Nanjing, Wuhan, Shenyang, Tianjin, and Fuzhou.

Mistake #1: Sticking to traditional categories
Who says supermarkets can’t sell video games or that electronics stores can’t sell soda and snacks? Many smart retailers are breaking free of traditional channel definitions that may limit the merchandise categories where they compete. If you have a cash register, you can sell it.

Mistake #2: Not having a retailing objective
Determine your Black Friday retailing objective(s) in advance. Do your door-buster ads attract new shoppers? Do they generate profits? Do they drive traffic for purchases of non-deal items?

Mistake #3: Not measuring your objectives
If you have measurable objectives, you need to measure them. Was Black Friday profitable for your stores? Did you attract new shoppers who return to shop in the following weeks? Did heavy traffic drive sales of non-deal items?

Mistake #4: Leaving a bad first impression with new shoppers
Black Friday is a great opportunity to attract new shoppers or win back infrequent shoppers. Don’t let them have a bad shopping experience. For shoppers new to your stores, many will say either “I should shop here more often” or “I’m never coming here again”. Make sure their experience is positive.

Mistake #5: Missing loyalty opportunities
Black Friday presents unique opportunities for retailers with loyalty programs. Rather than just rewarding shoppers willing to camp out overnight, why not offer special pricing to your most loyal customers over the year? Or maybe offering the hottest deals to shoppers spending over $100 on groceries? Or $500 in spending for November?

Mistake #6: Sticking to Friday morning
What’s so magical about Friday morning? Rather than focusing on a few precious hours, many retailers now offer door-busters on multiple days. Some retailers choose the morning of Thanksgiving Day while others offer door-busters two weeks before Thanksgiving.

Mistake #7: Not having door-buster merchandise in stock
When a long line of customers is waiting in the cold and dark for your doors to open, you’d better deliver on the promises of your Black Friday ad and web site. If stock is limited for hot door-busters, let shoppers know in advance, or at least while they’re waiting in line. Don’t let them wait in line for products you don’t have.

Mistake #8: No sense of urgency
Shoppers are in a hurry and appreciate retailers who can keep the lines moving quickly. Under-staffed checkouts, associates unfamiliar with ad merchandise, inadequate traffic direction, and late store openings will all lead to angry shoppers. Retailers need all hands on deck.

Mistake #9: Shallow discounts on door-busters
Black Friday is the one day that shoppers will be bombarded with rock-bottom pricing. Shoppers will not be impressed by so-called “door-busters” listed at everyday pricing or modest discounts by any manufacturer willing to buy space in your Black Friday ad. If your ad includes modest discounts, don’t call them “door-busters”.

Mistake #10: Not scouting the competition
It’s more than just monitoring ad prices. Seasoned shoppers will tell you: some retailers are much better at Black Friday than others. Retailers need to have scouts in the field checking out the competition for best practices and talking to shoppers about their experiences. Use these observations to plan for next year starting this December.