The rise and wrath of China's middle-class consumers

Quick to punish, but just as capable of pushing companies to do better, China's shoppers now wield a power that can make or break global and domestic brands.

- Tan Dawn Wei Senior Columnist

In mid-September, upmarket outdoor apparel brand Arc'teryx found itself at the centre of a public relations firestorm when it set off multi-coloured fireworks in the foothills of the Himalayas, sparking a furious environmental backlash that compelled the company to quickly issue an apology.

The spectacular high-altitude stunt was meant to pay tribute to nature and was a collaboration with pyrotechnics artist Cai Guo-Qiang, but it unleashed widespread outrage instead over its potential ecological damage to Tibet's fragile ecosystem and prompted the Chinese authorities to swiftly launch an investigation.

Around the same time, Chinese restaurant chain Xibei also faced significant blowback over its use of frozen and precooked ingredients after celebrity entrepreneur Luo Yonghao criticised the company on social media, describing the food as "expensive" and "disgusting".

The controversy snowballed into a broader debate about food authenticity and transparency in Chinese restaurants, ultimately pushing Xibei to issue a public apology.

These two incidents, although unrelated, are the latest examples of how far Chinese consumer behaviour has evolved from being passive recipients and admirers of global brands to becoming a formidable force, capable of bringing multinational corporations and homegrown businesses to their knees.

This redistribution of power in the world's second-largest economy has come on the back of a rising, more discerning middle class, ubiquitous social media connectivity, and hyper-competition for the consumer dollar.

DEMANDING RESPECT

The growing power and influence of Chinese consumers have bred a sense of entitlement that extends beyond quality concerns.

Consumers have demonstrated they will punish brands not just for poor products or services, but for perceived slights to national dignity, cultural insensitivity or failure to align with their values.