HorizonLink Consulting • 06 May 2024
Indroduction
In a rapidly changing retail landscape, the contrast between shopping behaviors in the United States and China highlights the evolving dynamics of consumer preferences. While Americans continue to favor brick-and-mortar shopping experiences, Chinese consumers increasingly opt for the convenience of online shopping. This article delves into the factors driving these preferences, supported by data and insights.
A recent survey conducted by the International Council of Shopping Centers (ICSC) reveals that a significant majority of Americans (about 83%) visit a shopping center at least once per week. Notably, 20% of Americans frequent shopping centers more than ten times weekly. On average, Americans visit shopping centers between six and seven times per week, emphasizing the integral role these centers play in daily life.
Christopher Gerlach, ICSC’s director of public-policy research, underscores the importance of shopping centers in meeting daily consumer needs. Whether for purchasing groceries, dining out, or availing personal services, shopping centers are indispensable for many Americans. The survey further breaks down the frequency of visits for various purposes:
● Goods: Americans make, on average, 3.7 trips per week to buy merchandise, with convenience items like milk accounting for 1.3 trips, health-and-beauty products 1.1 trips, and durable goods like apparel and electronics 0.6 trips.
● Services: They visit 2.8 times per week for services, primarily for food-related activities (1.3 times), personal services such as haircuts (0.7 times), and entertainment or fitness (0.4 times).
Spending habits reflect these frequent visits, with weekly spending at shopping centers averaging nearly $150 per person. This translates to approximately $30 billion per week in spending, or $4.2 billion per day, underscoring the economic impact of physical retail in the US.
Contrastingly, online shopping has become the dominant mode of purchase in China, driven by several factors that cater to the modern consumer’s needs. Observations highlight four primary reasons for this trend:
The preference for physical shopping in the US can be attributed to cultural habits and the social experience of visiting malls. The availability of 115,000 shopping centers, 90% of which are neighborhood and convenience centers, underscores the ingrained shopping culture in America. These centers serve as social hubs, fulfilling not just shopping needs but also recreational and service-based requirements.
In China, the rapid advancement of e-commerce infrastructure, coupled with high internet penetration and a tech-savvy population, has propelled online shopping to the forefront. Platforms like Alibaba and JD.com have revolutionized retail, offering unparalleled convenience and a wide array of choices, catering to the fast-paced lifestyle of modern Chinese consumers.
The stark contrast in shopping behaviors between Americans and Chinese consumers highlights the influence of cultural habits, technological advancements, and consumer expectations. While Americans continue to frequent physical shopping centers, Chinese consumers embrace the convenience and benefits of online shopping. As both markets evolve, understanding these preferences is crucial for retailers aiming to cater to diverse consumer needs in a globalized economy.