McKinsey Greater China

In this brief video, discover the “Four Trends to Watch in 2024”, based on our recently published “2024 McKinsey China Consumer Report.” The report is based on an in-depth survey of nearly 12,000 consumers across city tiers and regions, age groups, and income levels, and was led by Daniel Zipser, Junna shi, Daniel Hui, and Cherry Chen from McKinsey’s Consumer & Retail Practice in Greater China. Key insights: Trend 1: Promising Signs of a Consumption Recovery: Despite continued low consumer confidence, there are promising signs of a recovery, with growth in consumption seen in Q1 and Q2, and continued resilience. Trend 2: Young Consumers in Lower-Tier Cities Are Still Confident: Millennials in lower-tier cities demonstrate higher confidence due to lower living costs and better job security, compared to their peers in tier-1 cities. Trend 3: Consumers Are Shifting to Services and Experiences: Consumers are increasingly spending on education, health products and services, travel, and dining out, emphasizing experiences over goods. Trend 4: Mindset Matters: Post-COVID-19, there’s a growing focus on wellness, self-improvement, and purposeful spending, driving growth in key categories. Consumer companies in China should adopt a granular and flexible approach to capitalize on specific growth opportunities in this enormous and highly important market.   Download a free PDF of the report here: https://lnkd.in/gtGkpXZ5   #China #consumer #economy

China’s consumer market is on the path to recovery, driven by the country’s expanding middle-income group. This trend is unlocking significant retail sales potential, according to Daniel Zipser, Senior Partner and Leader of McKinsey’s Asia Consumer & Retail Practice. In an interview with China Daily, Daniel highlighted the shift from double-digit to more moderate, yet remarkable, single-digit growth in China’s consumption market. This is a positive sign compared to other global markets. Key insights highlighted by Daniel include: 🔹 Robust Recovery in Consumer Services: Tourism, dining, and entertainment sectors are bouncing back strongly. 🔹 Middle-Income Growth: The rise of the middle-income group will continue to fuel consumption and urbanization. 🔹 Prudent Consumers: Chinese shoppers are becoming more cautious, seeking the best deals but still valuing premium brands. 🔹 Shift to Service Consumption: There’s a clear movement from product to service consumption post-pandemic. 🔹 Innovative Technologies: AI, big data, and livestreaming e-commerce are pivotal in driving consumption growth. The National Bureau of Statistics reported a 4.1 percent year-on-year growth in retail sales for the first five months of the year. Online retail sales surged by 12.4 percent during the same period. Additionally, the rise of Generation Z is presenting new opportunities for both local and foreign brands. This tech-savvy cohort prioritizes product quality and value for money, making them discerning consumers. China’s consumer market is not just recovering; it’s evolving. Brands that innovate and deliver quality will thrive in this dynamic landscape. #China #consumer     Read the full interview: https://lnkd.in/gGGadyeh

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Which technology trends matter most for companies in 2024? The McKinsey Technology Council has recently published the 2024 McKinsey Technology Trends Outlook, highlighting the adoption, development, and industry effects of advanced technologies. Despite challenging overall market conditions in 2023, continuing investments in frontier technologies promise substantial future growth in enterprise adoption. Generative AI (gen AI) has been a standout trend since 2022, with the extraordinary uptick in interest and investment in this technology unlocking innovative possibilities across interconnected trends such as robotics and immersive reality. 💡 New findings in this year’s research include: 🔷 Generative AI saw a sevenfold increase year-over-year in searches and financial investments. Recent developments and trends in generative AI emerging in this year’s research include a rise in multimodal capabilities, a surge in open-source models, and multiagent approaches that employee multiple language models that work in harmony.  🔷 Job postings related to generative AI saw a 111% increase year-over-year. Organizations are now focusing on scaling and expanding their internal capabilities, leading to a sharp increase in demand for data scientists, software engineers, and data engineers. 🔷 Electrification and renewables prompted the highest investment and interest scores among all trends due to rising sustainability concerns. These scores reflect the level of accelerated innovation and investment required to reach net-zero with renewable technologies, which are crucial for global decarbonization efforts and energy security. The report also includes a deep dive on 13 additional trends such as applied AI, machine learning, the future of space technologies, software development, cybersecurity, immersive reality, cloud technology, and quantum. Find out how much these #emergingtechnologies may impact your industry: https://lnkd.in/eKkxsecW  #McKinseyTechTrends #TechTrends2024 #EmergingTechnology

📚 Looking for your next book? Each year, McKinsey seeks out the best books in business, technology, workplace culture, and more. Here’s our 2024 list, recommended by CEOs, founders, editors in chief, and other global leaders. As publishers of insights, we believe that reading books can be a powerful tool for learning, growing, and navigating the landscape of today’s complex business environment. And books can both illuminate and provide moments of respite from the demands of daily life. McKinsey Global Publishing leader Raju Narisetti returns with McKinsey’s 2024 annual book recommendations list—a McKinsey Global Publishing tradition—featuring suggestions from 50-plus CEOs and global leaders in media, nonprofit, and other organizations, as well as several McKinsey leaders. This year’s contributors spanned six continents and shared more than 90 books across ten genres. Fiction emerged as the most popular genre recommendation, followed by personal development. The standout favorite among our contributors? Outlive: The Science & Art of Longevity was endorsed by five leaders. Technology was also a popular category, with AI as a major focal point—a mirror of the technological zeitgeist shaping our era. Dive in to find your next great read: https://lnkd.in/efJijbz2 #books #booklist #reading

📢 The Chinese Edition of “Rewired” is Now Available! We’re thrilled to announce that “Rewired: The McKinsey Guide to Outcompeting in the Age of Digital and AI” has been published in simplified Chinese by CITIC Press under the title, 麦肯锡讲全球企业数字化. This Wall Street Journal bestseller, authored by McKinsey Digital’s Eric Lamarre, Kate Smaje, and Rodney W. Zemmel, has guided organizations worldwide through the complexities of digital and AI transformations. After analyzing the results of 200 large-scale digital and AI transformations, McKinsey has found that long-term success comes when the C-suite fundamentally changes their talent, operating model, technology and data capabilities. For the first time, Rewired translates the hard-won lessons McKinsey has learned helping companies deliver successful digital and AI transformations into a detailed “how to” manual. This playbook, which McKinsey has been developing and using with clients for the past six years, lays out exactly what it takes to build the capabilities to continually create great customer experiences, lower costs, and build value. It contains diagnostic assessments, operating model designs, best practices and detailed implementation methods, all exemplified with real-life case studies and illustrated with 100 exhibits. Business leaders will be digitally transforming their companies for the rest of their careers. Rewired is the reference manual they need for the journey. To purchase your copy of the new Chinese edition, find it on major book platforms by scanning one of the QR codes below. For information about the English edition, visit our website: https://lnkd.in/dWeDYefi #DigitalTransformation #AI #Leadership #Rewired #McKinsey  

We’re pleased to announce the publication of the “2024 McKinsey China Consumer Report: Getting Granular – In Search of Pockets of Growth in China.” As consumer confidence continues to hover at low levels, this report, authored by Daniel Zipser, Daniel Hui, Junna shi, and Cherry Chen, delves into the nuanced landscape of China’s consumption growth, offering valuable insights for consumer marketers. Our comprehensive nationwide survey of nearly 12,000 Chinese consumers reveals four key trends shaping the market:            1. Promising Signs of Consumption Recovery: Despite overall low consumer confidence, there are early indications of a gradual recovery. Retail sales, electric vehicle purchases, and travel are all showing positive momentum.            2. Confidence Among Young Consumers in Lower-Tier Cities: Millennials and mid- to high-income individuals in tier-3 and tier-4 cities express significantly higher confidence levels compared to their counterparts in higher-tier cities, driven by lower living costs and better job security.            3. Shift Toward Services and Experiences: Consumers are increasingly prioritizing spending on education, food and beverages, health products, and travel. This trend reflects a growing focus on health consciousness and life-enhancing experiences.            4. Mindset Matters: Consumer purchases are heavily influenced by their lifestyle aspirations. Despite economic uncertainty, Chinese consumers continue to invest in experiences that bring personal and familial joy, such as travel. These insights highlight the importance of a granular and targeted approach to effectively cater to the diverse and evolving needs of Chinese consumers. By understanding these trends, businesses can better navigate challenges and seize opportunities in this dynamic market. Read the full report to explore these trends in detail: https://lnkd.in/gtGkpXZ5   #china #consumption

In the summer edition of The Ticker, the business journal of the German Chamber of Commerce in China | East, Daniel Zipser, Senior Partner and Leader of McKinsey’s Asia Consumer & Retail practice, shares his perspectives on Chinese consumer behavior in his article, "Navigating China’s Consumer Landscape in 2024."   Daniel delves into the significant role of consumption in driving China's economic upturn, highlighting a notable increase in retail sales, particularly in sectors such as food service, automotive, and notably, electric vehicles. However, he also highlights the increased savings rate among Chinese consumers, indicating continued caution toward spending. Daniel also points to increases in spending on higher-value items and a move towards more sustainable and experience-based consumption. This shift presents opportunities and challenges for German companies operating in China, especially in aligning with China’s green agenda and adapting to local market trends. Daniel’s article also addresses the crucial role of digital innovation in retail, particularly the rise of social commerce and the strategic importance of engaging with local influencers. To read more, click below. Website: https://lnkd.in/eYqTDrnK WeChat: https://lnkd.in/em23VNHA #china #consumer

Joe Ngai, Chairman of McKinsey China, recently led McKinsey’s delegation to the World Economic Forum's annual "Summer Davos" conference in Dalian, China. In the following video, Joe shares some of his reflections from event:   1. Strong Interest in China: One clear takeaway is the continued strong interest in China from multinationals. Conversations were brimming with ideas for new collaborations and growing trade corridors, which have expanded significantly over the past few years. Especially from the “Global South.” 2. Long-Term Thinking: It has been a rough year. Many of us have been so focused on immediate challenges and short-term results. It's crucial to take a step back and consider long-term perspectives and solutions. 3. Innovation Everywhere: The level of innovation on display was astounding. From small to large companies, the creativity and new ideas, especially around AI, GenAI, and sustainability, are pushing boundaries. These events highlight the best of what's happening globally. 4. Maximizing Existing Potential: There’s a huge gap between what’s already possible now and what companies are actually deploying. There’s plenty of “low-hanging fruits”. #summerdavos #amnc24 #china

📢 Join us for the "Life as a Business Analyst" virtual recruiting webinar to learn about life as a McKinsey consultant in the Greater China Region! 💡 You'll also have the opportunity to hear interview tips and gain direct insights from our people on how to prepare and excel in your interviews with McKinsey. 🎓 If you are graduating in 2025 or 2026 and are interested in applying for a Business Analyst or Business Analyst Intern position, sign up now!    🗓 Taipei session:  https://lnkd.in/gbWV5MRg Wednesday, 31 July 2024, 8-9 pm local time Hong Kong session:  https://lnkd.in/gKuzF5Dm Thursday, 1 August 2024 , 8-9 pm local time Beijing/Shanghai/Shenzhen session:  https://lnkd.in/gEzXkVvY Friday, 2 August 2024, 8-9 pm local time     #mckinsey #McKCareers #recruiting #consultingcareers #businessanalyst