Consumer demand & consumption

Featured knowledge

china, hypermarket, retail, Wal-Mart, consumers, McKinsey
McKinsey research

Inside China’s hypermarkets: Past and prospects

May 2012

Hypermarkets have been hugely popular in China; from next to nothing in 1997, there are now 2,400 of them. But the low-hanging fruit has been picked. Not only is the competition tightening, but retail dynamics are changing.

 

smart TV, connectivity, McKinsey, consumer electronics
Telecoms extranet

Smart TV: Too smart to win over consumers?

May 2012

Internet-enabled television could be third in the “smart” procession, following smartphones and tablets. But can current technology deliver? And are customers even interested?

 

Mexico, consumer, retail, brands
McKinsey research

The post-recession consumer: Describing the Mexican shopper

April 2012

Mexico consumers are conflicted. On the one hand, only 16 percent of those surveyed by McKinsey believed that they were doing better economically; on the other, 48 percent are optimistic about the future.

 

Young digital consumers
Telecoms/Global iConsumer

The young and the digital: A glimpse into the future

April 2012

How well do you understand America's young consumers? Could you describe how they communicate, with what devices? These are half-trillion dollar questions—and McKinsey’s iConsumer can help to answer them.

 

emerging middle class; middle of the pyramid, Chotukool, GE, multinationals, B2B
Knowledge Bulletin

Product strategies for the emerging middle class

April 2012

For multinational corporations, the emerging-markets middle class is a promising frontier. But they will need to develop a nuanced understanding to reach these consumers.

 

banks, emerging markets, financial institution
McKinsey on Society

The $367 billion opportunity

March 2012

Why and how banks should be investing in emerging markets.

 

Financial innovation
Short take

Money talks: Why financial institutions need to pay attention to Apple

March 2012

Consumers expect their banks to give them what they want—even when they don't know what they want.

 

Vaitheeswaran is the China Business and Finance editor for the Economist

Five questions for ... Vijay Vaitheeswaran

March 2012

The China business and finance editor for the Economist has written a book about innovation, Need, Speed, and Greed. Vaitheeswaran answers five questions on consumer innovation.

 

Asia banks; retail banks; consumers; remote channels
McKinsey Personal Financial Services Survey

Customer first: What Asia's consumers want from their retail banks

March 2012

The strains of the current retail bank model are showing themselves, in the form of rising costs and falling loyalty. McKinsey asked 20,000 consumers in 13 countries about what they wanted. Here is what we found.

 

Internet usage in Brazil
McKinsey research

Getting to know you: How Brazil’s consumers use the Internet

March 2012

Who are Brazil's online shoppers? And how do they use the Internet? McKinsey asked thousands of Brazilians those questions. Here are the answers.

 

Chinese consumer, urban household, consumption, trends
McKinsey Quarterly

Meet the Chinese consumer of 2020

March 2012

Consumer companies know China is important. To succeed there, though, they need to understand the economic and social changes that are redefining the way that Chinese consumers spend.

 

mobile phone, emerging market, pre-paid, post-paid, pay-as-you-go
Telecoms extranet

Emerging opportunity: The mobile postpaid market in developing countries

February 2012

Rising incomes and increasingly sophisticated consumers could open the door to more mobile postpaid offerings for operators with the right strategies.

 

discount retail, consumer research, Aldi, Kaufland, Mercadona, Lidl, Edaka
McKinsey analysis

Keeping it simple; getting it right

February 2012

Many European retailers want to replicate the successful models applied by discount stores, but the results are mixed. Here is how to get it right.

 

social media, CDJ, McKinsey, marketing
McKinsey analysis

Taking social media along on the Consumer Decision Journey

January 2012

Buying something is not just a destination; it is a journey of many steps.

 

china, mobile phone, retail, smartphone, China Telecom, China Mobile, Gome, Suning
McKinsey research

Ringing the changes: The dynamics of China’s mobile phone market

January 2012

The dynamics of China’s mobile phone market are changing, in particular the way that people buy their handsets. Who are the likely winners? And losers?

 

luxury market

Exploring a world of luxury

January 2012

McKinsey takes a keen interest in the luxury market. Here is a sampling of some our most recent in-depth research on the subject.

 

brazil, luxury, consumer, retail, consumption, trends
McKinsey research

What companies need to know about Brazil’s luxury consumers

January 2012

McKinsey estimates that about 3 million Brazilians can afford luxury goods. Here is how to reach this ambitious and surprisingly youthful market.

 

brazil, middle class, consumer, consumption
McKinsey research

Getting to know you: How to reach Brazil’s burgeoning middle class

January 2012

Europe is in crisis; the US is in the doldrums; China is worried about a property bubble; India has hit a rough patch. But Brazil is thriving. In the first of two articles on Latin America's largest economy, we look at what makes the middle class tick.

 

emerging markets, consumers, packaged goods, MNCs
Global Growth Compass

Finding profits and growth in emerging markets

January 2012

Over the next 10 years, consumer spending in emerging markets is expected to grow three times faster than in developed nations, reaching a total of $6 trillion by 2020. Consumer-goods companies must understand and address these changing patterns of —by both geography and category This report suggests how.

 

mobile, pre-paid, post-paid, emerging market
McKinsey research

Ringing up profits: How to crack the post-paid segment in new markets

December 2011

Mobile usage in new markets has been associated with the pay-as-you-go (or “pre-paid”) model. As incomes rise and prices fall, consumers are likely to shift to the contract (or “post-paid”) model. Here's what companies need to know to make the shift work to their advantage.

 

Asia, banking consumers, retail, branch visits, mobile banking
McKinsey research

Spoiled for choice: How Asia's bank consumers are changing channels

December 2011

Asian banking consumers are changing the way they do their business. Here's how banks can adapt.

 

Brazil, drug stores, retail, Class C, Droga Raia
McKinsey research

Winning in the Brazilian pharmacy market

December 2011

Brazil pharmacy retailers have every reason to be optimistic, with strong growth and a surging economy. But there will also be a shakeout. The winners will be those who adapt to three key trends.

 

coupons, redemption, Groupon, US, retail
McKinsey research

US consumers and coupons: A story of redemption

December 2011

American consumers have been using coupons with new enthusiasm. But is this a good thing for companies?

 

US consumer, retail, trend, digital, Hispanics
McKinsey research

Forging the future: The forces that are shaping US retail

December 2011

Digital, big data, ethnicity, polarization and other trends that are shaping the US retail landscape.

 

middle class, emerging markets, telecoms, consumers, innovation
Telecoms

A billion buyers: Product innovations for a new consumer class

November 2011

Economic growth is lifting hundreds of millions out of poverty. Will players in telecoms, media, and high tech be prepared to meet their demands?

 

Russia's retail market
McKinsey analysis

Dress for success: Cracking Russia’s apparel market

November 2011

Once dominated by open-air markets and department stores, Russia’s apparel market now features upscale global boutiques. Foreign players will find the market fraught with considerable, but manageable, peril.

 

India, rural market, multinationals, middle class
McKinsey analysis

How to win in India’s rural markets

November 2011

The rush to serve India’s growing middle class has concentrated on the cities—but there’s rupees to be made in rural areas too.

 

Asia Insurance

The trillion-dollar opportunity

November 2011

Asian markets will drive growth in the global insurance industry. How can insurers make the most of this chance?

 

 

Sales growth insights
McKinsey book

100-plus leading executives detail the secrets of sales growth

Companies that make the deep strategic, organizational, and operational shifts required can accelerate revenue growth.

 

consumer products, product development, insights, consumer goods
McKinsey Operations

The insight trap: Why customer feedback can make products worse

November 2011

Companies invest enormous money and effort to create new products and services. Too often, though, they have a serious flaw: Consumers don't want them.

 

Chinese consumer, spending, trends, retail, shopping, McKinsey survey
McKinsey research

2011 Annual Chinese Consumer Study: The new frontiers of growth

November 2011

What makes Chinese consumers tick? What are they worrying about? How will burgeoning inflation shape their behavior? See the answers to these questions and more in McKinsey's most recent in-depth survey of Chinese shoppers.

 

energy, home, utilitiies, consumer, efficiency
McKinsey Quarterly

How European consumers are creating the home of the future

October 2011

Consumer behavior is likely to transform the European residential energy market in the next decade. How can companies adapt?

 

digital consumer behavior iConsumer McKinsey
McKinsey research

Minute by minute: How do global digital consumers spend their tech time?

October 2011

In the first of five articles drawn from exclusive research, McKinsey details how consumers spend their tech time.

 

Global apparel market
McKinsey research

Fast fashion: Navigating the global apparel market

October 2011

Changing consumer preferences and the need for speed are complicating the apparel business along the entire value chain.  Here's how to deal with the most important challenges.

 

growing middle class in Latin America
McKinsey research

In Latin America, a little respect goes a long way

September 2011
Retailers are aggressively pursuing Latin America’s growing middle class. To succeed, they need to show that they value their customers, not just their money.
Global Tribes
McKinsey analysis

The human factor: How global tribes are changing the marketplace

September 2011

Spurred by the spread of the Internet, mobile technology and social networks, global digital tribes are forming. Marketers who ignore the phenomenon will lose out.

 

Chinese consumers come of age
McKinsey research

China’s banks: Consumers come of age

September 2011

China's rising middle class loves to shop. But it is also going in for less conspicuous consumption, in the form of financial products.

 

luxury goods in South Korea
McKinsey research

Korea's luxury market: Demanding consumers, but room to grow

September 2011

This year's Luxury Consumer Survey addresses three key questions: Can South Korea keep it up? What’s changing? And what do these trends mean for the players in the luxury industry?

 

 

CEO of Mexico’s Grupo Bimbo, Daniel Servitje
McKinsey Quarterly

Grupo Bimbo: The making of an emerging-market champion

August 2011

The CEO of Mexico’s Grupo Bimbo, Daniel Servitje, reflects on the growth path of one of the world’s biggest packaged goods companies.

 

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Telecoms

There’s an app for that: Creating app stores consumers will love

July 2011

Everyone's opening app stores—but only a few are succeeding at it. Here's what you need to know to crack the code.

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Telecoms

How to create apps that consumers will love

June 2011

Some branded apps have generated real user buzz. Here’s a few secrets as to how they did it.

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June 2011

Global mobile banking—evolution or revolution?

Is mobile banking the wave of the retail future, or just hype? Where should banks place their bets?

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Short take

Consumers shake up the insurance market

June 2011

Hammered by recession and still uncertain about the economy, consumers are getting pickier. Just look at auto insurance.

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No seismic shift for luxury in post-quake Japan

May/June 2011

Although they were rocked by the Tohoku earthquake, Japan's luxury consumers are back shopping—but with caution.

 

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Interview

Five questions for ... Christophe Lorvo

May 2011

Christophe Lorvo, general manager of the Grand Hyatt Tokyo, answers questions about the global hotel business—and how to keep going after an earthquake.

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McKinsey Quarterly

Finding consumers, and growth: A new road map

April 2011

New findings show how large and small companies grow—and reveal the startling performance of emerging-market players.

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McKinsey report

Understanding China's growing love for luxury

March 2011

McKinsey's in-depth annual report on the Chinese luxury market reveals two major trends: There are more luxury consumers, and they are more sophisticated.

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Short take

Grooming the bear: Trends in the Russian personal- and home-care markets

March 2011

The Russian economy turned the corner in 2010. Will consumers get back to spending on themselves?

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Short take

Five things to know about Brazil’s fast-moving consumer market

March 2011

Should consumer-goods companies be going into Brazil? Or expanding there? Or waiting-and-seeing?

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The decade ahead: Trends that will shape the consumer goods industry

February 2011
The past, however exhilarating, is an uncertain guide to the future. Here is McKinsey's best take on what the consumer-goods industry can expect in the next 10 years.
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McKinsey Quarterly

Can India lead the mobile-Internet revolution?

February 2011
India could become the world’s first truly mobile digital society—if the private and public sectors cooperate.
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Out of Africa: A generation of consumers on the rise

February 2011

With several years of sustained, broad-based growth behind it, Africa is becoming an important market. Here are the most important trends shaping the African consumer sector.

 
Outside insights

What are Americans buying?

And how has that changed since the late 1940s? One tip—a lot less money on food; a lot more on housing. Take a look at these fascinating charts from:

 
Outside insights

Snapshot: The global socially conscious consumer

Nielsen asked 28,000 online consumers in 56 countries about their attitudes—and behavior—to socially-conscious companies.

  • 64% of North American consumers say they prefer to buy from, work for, and invest in companies that give back to society. In Europe, the figure was 55% and in Asia, 70%.
  • 35% of Americans say they would pay extra for products by such companies; 32% of Europeans and 55% of Asians agreed.
  • Causes mentioned most often by socially-conscious consumers that companies should support: environmental sustainability (66%); improve science/math training (56%); extreme poverty/hunger (53%); disaster relief (52%); support small business/entrepreneurship (50%).

SOURCE: Nielsen Report: The Global, Socially-Conscious Consumer

 

Prediction 2016:
The future of US retail

US retail market trends

Where retail is growing (projected compound annual growth rate, 2010 to 2016)

E-commerce: 8.5%

Club: 4.9%

Dollar: 4.8%

Supercenters: 4.6%

Pet: 4.1%

Where retail is shrinking 

Mass merchandise: - 3.0%

Toy: - 1.7%

Books: - 1.1%

Source: Nielsen, Retail USA: What’s in store for 2016

 

Brewing up profits: The real tea party

Trends in tea industry

1. The top three importing countries are Russia, Britain and the US. The top exporters are Kenya, China, and Sri Lanka.

2. The top companies by market share are Unilever (15.5%); Tata Tea (4%) and Associated British Foods (3.2%).

3. Tea is growing faster than coffee, in terms of volume, but is still less than half the size (2.7 million tons versus 5.6 million in 2011).

SOURCE: Euromonitor, PCTAS, McKinsey