A complete guide to target market consumer demand research: a guide to practical methods and tools!

Understand the basic characteristics of consumers in the target market

As a newcomer to foreign trade, you should know that the first step in demand research is to deeply understand the basic characteristics of consumers in the target market. These basic characteristics include age, gender, income, occupation, education level, etc. Different characteristics will directly affect consumers' purchasing power and purchasing preferences.

For example, different age groups have different consumption demands. According to data from market research institutions, in the field of fashion clothing, young consumers aged 18 to 25 prefer trendy and personalized styles. They pursue novelty and are relatively less sensitive to prices. Consumers aged 40 to 50 pay more attention to the quality, comfort and practicality of clothing, and reasonable prices are one of the important factors they consider.

Gender is also an important factor affecting consumption. Taking the cosmetics market as an example, female consumers usually pay more attention to the whitening, moisturizing, anti-wrinkle and other effects of skin care products, as well as the color, texture and brand of cosmetics. Male consumers prefer simple and practical skin care products, such as facial cleansers and toners.

Income level should not be ignored either. High-income consumers are more willing to pay higher prices for high-quality, high-end products, and they have higher requirements for product brands, services and experiences. Low-income consumers, on the other hand, pay more attention to the cost-effectiveness of products, and price is the key factor in their purchasing decisions.

Explore consumer purchasing behavior

In addition to basic characteristics, you also need to focus on studying consumers' purchasing behavior habits, including purchase time, purchase frequency, purchase channels, etc.

In terms of purchase time, different products have different peak sales seasons. For example, winter is the peak sales season for warm products, while summer is the peak sales period for cool drinks and sunscreen products. In addition, some festivals and promotional events are also the time when consumers make concentrated purchases. According to statistics, American consumers' online shopping expenditures will increase significantly during "Black Friday" and "Cyber ​​Monday" every year, and many merchants' sales during this period can account for 10% - 15% of their annual sales.

The purchase frequency also varies from product to product. For example, daily necessities, such as toothpaste and shampoo, are purchased more frequently by consumers, usually every month. However, durable consumer goods, such as home appliances and furniture, are purchased less frequently, perhaps only once every few years.

In terms of purchasing channels, with the development of the Internet, online shopping is becoming more and more popular among consumers. According to surveys, in Europe and the United States, more than 60% of consumers choose to buy goods online. But at the same time, offline stores still have irreplaceable advantages, and some consumers like to experience the products in person in physical stores before purchasing.

Understand consumers' product preferences

Consumers' preferences for products are mainly reflected in functions, design, quality, price , etc. Understanding these preferences can help you develop and promote products better.

In terms of functions, consumers usually hope that products can meet their actual needs. Take smartphones as an example. In addition to paying attention to the basic functions of mobile phones such as calling and texting, consumers also attach great importance to functions such as taking pictures, battery life, and running speed. In the market, smartphones with high-pixel cameras and long battery life are often more popular with consumers.

Design is also an important factor in attracting consumers. The appearance design of the product must conform to the aesthetic concept of the target market. For example, in the European market, simple and elegant design styles are more popular; while in the Asian market, some exquisite and delicate designs may be more appealing to consumers.

Quality is one of the core factors that consumers consider when purchasing products. Consumers are willing to pay a higher price for products with reliable quality. According to a survey, more than 70% of consumers said that they would give priority to brands with guaranteed quality.

In terms of price, consumers always want to buy products with high cost performance. You need to set reasonable product prices based on the consumption level and competition of the target market. In some developing countries, price sensitivity is relatively high, and low-price strategies may be more effective; in developed countries, consumers pay more attention to the value of products, and appropriate high-price strategies can also be recognized by consumers if combined with high quality and unique functions.

Consider the impact of local culture, policies and regulations on consumption

Local culture and policies and regulations have a significant impact on consumers’ purchasing behavior. Cultural factors include religious beliefs, values, customs, etc.

Different religious beliefs have different taboos and consumption habits. For example, in Islamic countries, Muslims are forbidden to eat pork, so there is almost no demand for pork-related products in these markets. At the same time, during religious festivals, consumer demand will also change. For example, during Christmas, consumers in European and American countries will buy a large number of Christmas decorations and gifts.

In terms of policies and regulations, countries have different quality standards, certification requirements, tariff policies, etc. for imported products. You need to understand and comply with the relevant policies and regulations of the target market, otherwise you may face problems such as your product not being able to enter the market or being fined. For example, the EU has high environmental standards for electronic products, and products must comply with the RoHS directive to enter the EU market.

Methods and tools for researching consumer needs in target markets

After understanding the content of the survey, the next step is to master the methods and tools of the survey. Commonly used survey methods include questionnaires, interviews, observations, etc.

Questionnaire survey is an efficient and widely used research method. You can design a questionnaire and distribute it to consumers in the target market through online questionnaire platforms such as WJX and SurveyMonkey. The content of the questionnaire should be concise and the questions should be targeted. Generally speaking, the response rate of an effective questionnaire can reach 20% - 30%.

Interviews can be face-to-face, telephone or video interviews. By communicating with consumers in depth, you can understand their needs and opinions in more detail. Interviewees can be ordinary consumers, industry experts or retailers. Each interview should last between 30 and 60 minutes.

Observation method refers to observing consumer behavior in a natural environment. For example, you can observe consumers' purchasing process in shopping malls, supermarkets and other places to understand their attention to products, selection tendencies, etc.

In terms of tools, in addition to the questionnaire platforms mentioned above, there are also some data analysis tools that can help you process and analyze survey data, such as AB Customer , which uses AI to generate an in-depth analysis report on the target market with one click, helping you extract valuable information from large amounts of data.

Take action now!

Through the above introduction, you have learned about all aspects of the target market consumer demand research. This is an important foundation for your foreign trade business. Only by deeply understanding the needs of consumers can you provide products and services that meet their expectations and stand out in the market competition.

If you have any other questions about foreign trade business, or want to get more market information, please feel free to contact us. Let us start a successful foreign trade journey together!