McKinsey Greater China

In a constantly changing economy, understanding consumer mindsets and market trends is crucial for businesses operating in China, writes McKinsey Partner Daniel Hui in an article published in the Hong Kong Economic Times. In his article, Daniel shared some of the key insights from the recently published 2024 McKinsey China Consumer Report: 1️⃣ Recovery Expectations: Despite economic concerns, many Chinese consumers are optimistic, with recovery signs evident in increased retail sales and booming sectors like electric vehicles and tourism. 2️⃣ City-Level Confidence Variations: Confidence levels vary across different city tiers, with higher optimism seen in lower-tier cities. Millennials and middle-income groups in third and fourth-tier cities show the most confidence. 3️⃣ Shifts in Spending: Consumers are redirecting their expenditures towards new experiences, prioritizing education, food and beverages, health products, and travel over traditional durable goods. 4️⃣ Harnessing Technology: Leveraging data and AI is essential for understanding consumer behavior and guiding spending towards targeted products. Establishing omnichannel customer profiles and improving operational efficiency are critical steps. Businesses must adapt to these changes to thrive in China’s evolving consumer landscape. Read Daniel’s article in HKET: https://lnkd.in/gCcHmcC6 Download a PDF of the 2024 McKinsey China Consumer Report: https://lnkd.in/gWGC66YJ #China #consumer #economy

***Announcement: Participate in a new global survey on AI by McKinsey and be the first to gain access to the results*** At a time when the capabilities of artificial intelligence are rapidly advancing, we would be grateful if you could participate in McKinsey’s latest global survey on how organizations are using AI—and generative AI in particular—in their business. We are seeking a wide range of views from respondents at all levels who are familiar with their organizations’ use of AI or who understand why their organization is not using AI. To thank you for participating, we will send you the survey results in advance of their public release if you choose to receive them. Upon completion of the survey, you will also have immediate access to a PDF of the first few chapters of the newly published Chinese edition of “Rewired: The McKinsey Guide to Outcompeting in the Age of Digital and AI”, a Wall Street Journal bestseller. The survey, which is conducted in simplified Chinese, will take about 20 minutes to complete. To have your views included, please complete the survey by Thursday, August 1, 2024. Click here to start the survey: https://lnkd.in/gVqQ5CUM Thank you for helping us with our research. Your valuable insights will help us shed light on how organizations use AI today.   诚邀您参与麦肯锡人工智能调研 人工智能发展日新月异，麦肯锡希望通过调研的方式，了解组织如何应用人工智能、特别是生成式人工智能。为使调研结果足具代表性，我们希望广泛收集企业内熟悉人工智能情况的各级人士的意见。不论您是了解组织内人工智能应用情况，或是了解所在组织为何尚未应用人工智能，都对我们的调研非常宝贵。 为了感谢您的参与，我们将提前与您分享最新调研结果。此外，完成本次调研后，您可以立即获赠麦肯锡新书——《麦肯锡讲全球企业数字化》（”Rewired: The McKinsey Guide to Outcompeting in the Age of Digital and AI”）介绍部分的免费PDF文件。此书荣登华尔街日报畅销书排行榜。 完成本次调研大约需要20分钟，为了充分采纳您的结果，请在8月1日（星期四）前完成本次调研。   [点击这里参与调研] https://lnkd.in/gVqQ5CUM   感谢您的积极参与！

The wealth management industry is undergoing a significant transformation, driven by the integration of big data and artificial intelligence. This shift is moving the industry away from a traditional product-led sales model towards a more customer-centric investment advisory model. The demand for personalized investment advice and portfolio management services is increasing, rendering traditional bulk sales of financial products obsolete. Particularly in Asia, the demand for these services is rising due to economic growth, enhanced investor education, and regulatory changes. This period of transformation represents a golden opportunity for financial institutions to evolve and capitalize on new development opportunities. In his recent article in @Capital 資本平台, Raymond Woo, Partner in McKinsey’s Hong Kong office, analyzed the these trends and shared recommendations for companies : 🔷 Embrace agility and scalability to stay competitive. 🔷 Build comprehensive products, establish competitive barriers in areas like ESG and private equity, while enhancing traditional investment advisory to include extensive life-cycle financial planning. 🔷 Leverage technology like AI and Robo-Advisory to enhance efficiency. 🔷 Adopt flexible fee structures to meet diverse customer needs. Read the full article: https://lnkd.in/g5jbtxHT #WealthManagement #DigitalTransformation #FinanceInnovation

On Wednesday, Joe Ngai, Chairman of McKinsey Greater China delivered a keynote on 'Hong Kong’s Implementation of Low-Carbon Economic Transition' at the TVB Green Summit 2024. The summit provided an excellent platform for engaging with peers dedicated to sustainable practices. During his speech, Joe highlighted several critical points: 🔹 Urgency of Action: Joe emphasized the critical need for swift action in sustainability, noting that the carbon budget to keep global temperatures within a 1.5°C increase is rapidly depleting. The focus must shift from "what" needs to be done to "how" we can achieve these goals effectively. 🔹 Reframing ESG: He challenged the current perception of ESG as merely a compliance requirement. Instead, Joe proposed viewing it as a competitive advantage and a core competency. This shift can transform sustainability from a cost factor to a potential revenue stream by fostering innovation and new business models. 🔹 Hong Kong's Leadership Role: As a leading financial hub and an emerging center for green technology, Hong Kong is in a prime position to lead Asia’s zero-carbon transition. Joe suggested that there is no existing sustainability role model in Asia, and Hong Kong should strive to set this example, particularly by integrating ESG values deeply within corporate cultures and business practices. Joe's insights underscore the notion that the journey to a low-carbon economy represents not only a compliance challenge but also a strategic business opportunity that can redefine the parameters of corporate success. #TVBGreenSummit2024 #Sustainability #ESG

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

At McKinsey, we don't just point the way—we help you get where you need to go. From transforming your performance to powering new growth, we turn your ambition into action. We know what it takes. We do it every day.   Dive deeper into what it means to be a transformation partner with us:  https://lnkd.in/gHkimuDH  

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