China through the eyes of its people

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Ashok Sethi, TNS Buenos Aires May 15, 2006
China through the eyes of its people
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Emperor Qianlong to King George III in 1793
As your ambassador has seen for himself, we
possess all things. I set no value in objects
strange and ingenious and have no use for your
manufactures
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Feudalism to Consumerism in 100 years
Cultural Revolution
Wars
Economy Takes off
1911 Collapse of the last dynasty
1949 Foundation of P.R.C (Socialism)
Reform initiated
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Population in China

• 1.3 billion people
• 22 of the world population.
• National Density 130 per sq km
• East Coast 400
• Central Area 200
• West Area 10
• .

????!
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Number of cities in China
City size

• 745 million people living in rural areas
• 562 million people living in 662 cities in all
• 25 mega cities, with 2 million inhabitants
• 166 cities with a population of more than 1
  million

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Changing of Demographic StructureThe growth rate
of population is slowing down.
Source National Statistics Bureau
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One child PolicyHigh success in population
control through persuasion and coercion

• Only 84 affluent Shanghai citizens registered to
  have a second child between 2002 to 2005
• Most young people under 30 are ???? and most
  children of young couples do not have an uncle or
  an aunt.
• Leading to a new generation of a highly pampered,
  indulged and prosperous children - Little
  emperors and empresses of China

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Economic growthSustained growth of 9 for over
20 years!
Source National Bureau of Statistics
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Economic growthDriver of growth increasingly
shifting from exports to internal consumption
Million mobile phone subscribers
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On the way to become a modern economyInternet
Users in China
forecasted to expand 30 to 134 million by the
end of 2005,
(0,000) users
China is the home to the second largest internet
population in the world!
Sourced from CNNIC
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The big city pictureBig city penetration close
to Western cities
4 city Shanghai, Beijing, Guangzhou Chengdu
User Access Internet at least once a week
Sourced from CNRS
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Total 15 Cities Retail Structure Y2005A modern
China emerging
Note Traditional Trade included Wholesale,
Grocery, Free Market, Others. Modern trade
included Department Store/Shopping Center,
Hypermarket, Supermarket/CVS. Sales value
included Asiapanel 44 Food and Non-Food
categories in China.
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Does it
Make the Chinese happy?
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HappinessAt the cost of family life..
Social Survey Institute of China N2000 in 17
provinces
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Happiness across citiesGuangzhou, rich but shows
low levels of happiness

City
Happiness
Shanghai
Richest but only third happiest
Guangzhou
Second richest but least happy
Chengdu
Poorest among the 10 but second most happy
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HappinessHappy with material standard and
international glory
Satisfaction Index (Max5.0)
Social Survey Institute of China N2000 in 17
provinces
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HappinessSecurity and stability areas of
concern...
Social Survey Institute of China N2000 in 17
provinces
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Fear of securitySeveral sociological factors
contribute to the dwindling sense of security.

• Disappearance of the iron rice bowl
• Life long employment and basic services no longer
  guaranteed
• Closing or trimming of SOE (state owned
  enterprises) leading to significant unemployment
• Widening gap between
• Urban and rural
• Within the haves and the have-nots in urban
• Large population of immigrant labour flooding the
  cities.

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Per Capita Disposal Annual Income , 1991-2005
The income of urban household increased much
faster than rural household.
10 of the nations richest people enjoyed 45 of
the countrys wealth while the poorest 10 had
only 1.4
Value (RMB)
Source National Statistics Bureau
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ChallengesFalling sense of security
Mean score on a 5 point scale
Horizon Research N4,128 residents in 8 cities,
aged 18-60 years
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Other challenges

• Lack of adequate protection of wealth and
  property.
• Protection of new found wealth depends upon
  partys continued endorsement of economic reform
• Legal framework not in place which guarantees
  right of property or wealth.

National Bureau of Statistics
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What are the Chinese concerned aboutThe great
urban rural divide
Rural
Urban
Employment
Agricultural policies
Security
Youth education
Housing
Migrant workers rights
Environmental protection
Economic development
2005 Index Research on Chinese Citizen N 4128
in 8 large cities
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Environment Chinas booming economy puts it on
the path to become the worlds No. 1
greenhouse-gas emitter by 2020

• Rapid growth at the expense of the environment.
• 25 million full grown polar and birch trees are
  felled in order to produce 45 billion pairs of
  chopsticks a year!

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EnvironmentWater and air pollution the main
concerns
All China Environment Federation National survey
via SMS N4,104,120
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EnvironmentBoth the citizens and policy makers
are concerned
China intends to increase its forest cover from
18 to 20 over the next five years. Chinas
environmental watchdog and statistics agency are
working together to establish an accounting
system to calculate green gross domestic product,
or green GDP. 5 tax imposed on disposable wooden
chopsticks!
GMI Online Survey, in Beijing, Shanghai,
Guangzhou and Shenzhen N1000
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EducationHighly valued by the Chinese

• Education has always been valued in China, and
  learning has been a route for advancement in
  life
• Through Imperial exams in the dynastic age
• Through university and post graduate exam in
  modern China.
• However, cost of education has been going up and
  four years of college cost more than 40,000 yuan
  (US5,000) on average today..
• According to a survey of China's Horizon
  Consultancy Group, educational spending accounts
  for 32.6 percent of rural household income and
  25.9 percent of urban household income.

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High aspirations for childrenMost demanding in
the region

• Most parents want their children to become top
  achievers except in Japan, where parents just
  want their children to become adults who dont
  cause trouble.
• However, cost of education has been going up and
  four years of college cost more than 40,000 yuan
  (US5,000) on average today..

Benesse Corporation N1007 in Tokyo, 941 in
Seoul, 992 in Beijing, 935 in Shanghai and 2259
in Taipei
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Gender
And sex
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Sex and gender in China

• Confucianism, shaper of Chinas culture and
  values for the past 2500 years is patriarchical.
• Polygamy was legal until 1949
• Traditionally the main task for women was to bear
  children
• But Mao tried to change that

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Changing picture
Communism
Pre revolution
Today
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What Chinese women wantDespite over 80 of
women working, happy family tops the list
The Happiest groups
Most important factors
Married for the first time
Happy family
Single
Decent job
Remarried
Good income
Divorcees and widows
Hakun Womens Life Investigation Centre 10 large
cities
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Women todayBias shows through in advertising and
media

• Strong preference for male child lingers
• Advertisements on Chinese TV reveals that women
  are mostly portrayed as housewives while men are
  shown as successful professionals.
• From nearly 5000 ads, the team members picked out
  only 9 ads that they consider to project a
  balanced image of women.

In family settings, more men seem to enjoy and
idle while the women do the housework..
appearing to flaunt their sex appeal emphasizing
on their faces, hair, lips, and svelte,
voluptuous figures.
Volunteers from the China Academy of Social
Sciences (CASS) surveyed 4,935 ads from 10 TV
stations during peak viewing time in 5 cities
from August to November 2005.
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SexNear the top in Asia, but need to learn from
the Greeks..
Durex Global Survey of Sexual Habits
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Chinese people
Speaking out
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Consumers want better bus service !Controlled
criticism surfacing in media

• Public services came under close scrutiny in this
  poll

Five worst
Five best
Bus Service
Electricity provision
Property management
Customs administration
Tourism agencies
Road toll agencies
Supermarkets
Entry-exit and quarantine
Home decoration companies
Tap water supply
Office of Spirrtual Construuction, Shanghai
Municipal Government N33,950
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Businesses want better government
serviceControlled criticism surfacing in media

• Complaints include random charges, unfairness in
  law enforcement, inadequate professional
  competency and inadequate facilities.
• Suggestions mentioned simplified work flow,
  ethics training of staff, stricter law
  enforcement, more guidelines for public access
  and greater application of information
  technology.

Guangdong Provincial Condition Survey and
Research Centre N154 large firms
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thank you