This article is about to explain how you can manage database collation and character set of your database. If you are working on website which covers only one language which is english then you may not worry about these stuff.
But If you are dealing with the multilinguag website which includes various languages (chinese, hindi, gujarati, etc.) then you MUST need to take care of this stuff.
To make your database able to handle these characters of different languages you need to set proper Database Collation and Character Set for the database.