Chinese food for thought

McKinsey has produced a report: Understanding China's Digital Consumers a study of connected consumers, in which they describe segments uch as 'digital junkies,' 'mobile mavens' and 'info-centrics.'

McKinsey estimates that around 6 million people go online for the first time each month in China and, in their survey of 4,866 connected consumers, they found that typical respondents now spend 39.2 hours online each week, incorporating video, music, gaming, instant messaging and social networking.

'Digital junkies' spend 34.1 hours per week on new media devices such as laptops, MP3 players a e-readers and replace their mobile phones at least once a year; 'info-centrics' mainly use the web for search, information and e-mail, and 'mobile mavens' surf the net for a minimum of 14 hours per week mainly through wireless handsets.

McKinsey concludes that word-of-mouth is increasingly influential in China and, with an internet population predicted to grow from 420 million now to 750 million in 2015, that's a lot of words from a lot of mouths. I wonder what the Red Guards would have made of such democratic communication by the people, through the people, for the people?

We need more large multinationals

I make no apologies for quoting shamelessly from City a.m. editor Allister Heath's column from the 17th January. He in turn is reporting on a recent McKinsey report about the contribution to economic growth of large multinationals to the US economy; 23% of UK private-sector direct value add, 34% of private-sector value add if you include indirect value to their supply chain; 31% of growth in GDP since 1990; 41% growth in labour productivity over the same time period; 75% of private R&D spending; 50% of US exports; 33% of US imports.

The IPA, in its dealings with UK Government, particularly BIS and DCMS, has emphasised repeatedly the importance to the marketing services sector of encouraging big multinationals to make the UK their European HQ or their hub to the world outside of their immediate continent.

Our reputation globally relies on originating and managing international campaigns from the UK on behalf of multinational brands.
That's why we share Allister's worry that 'there are too few world-beating giant multi-nationals being created in the UK; and many existing ones are relocating their HQs for tax purposes out of Britain. Both these trends must be reversed.'