The biggest change in Chinese consumer behavior comes from the young generation’s rising wealth and increasingly Westernized lifestyle. Incorporating Chinese tradition is important, but it’s even more important to do it in the right way. Mintel research found that a third of Chinese consumers value brands’ responses to their comments, criticism, and questions on social media. The expert-led global market intelligence solution for the beauty and personal care industries. Experiential marketing has become popular to cater to this need – through the use of omnichannel platforms, games, and contests. This new Chinese consumer, however, still has a sense of national pride and it would be a mistake for any brand to think they are neglecting previous traditions and cultures. Mintel research further reveals that personal finance and housing remains to be the biggest consumer spending sector, accounting for 23.7% of total consumer expenditure in 2018. This method of consuming the internet has altered Chinese consumer behavior to favor convenience and efficiency. Due to the impact of COVID-19 on Chinese consumers, the household spending is projected to fall by -2.8% y-o-y in 2020, from the pre-COVID-19 forecast of a growth of 7.2% y-o-y. However, as this group starts to settle down and establish families it is estimated that they will become more conservative in their spending. KOLs and KOCs: fine-tuning the levers of consumer influence; sales events and discounts: data-enabled pricing and promotions; Download China digital consumer trends 2019: Discovering the next wave of growth, the full report on which this article is based (PDF–745KB). Trend tracking, analysis and interpretation of changes in culture markets, brands and consumer behavior. They often spend their parent’s money and are a huge factor in influencing their parents purchasing habits too. Non-essential expenditure (tourism, restaurants, entertainment outlets, clothing and footwear etc.) Jessica Jin, Category Director of Mintel China Reports, said: “With China’s economy still experiencing healthy growth, Chinese consumers, today, are increasingly in pursuit of richer experiences and quality of life. We predicted that these cities will become a major target for brands in 2019 (See our other predictions for 2019 here: Top 10 China Digital Marketing Trends (2019)). The opportunity lies in offering consumers new and fun leisure experiences that allow them to be culturally sophisticated.”, “In the five years to 2023, total holiday expenditure will grow at a CAGR of 12.8%. They launched a WeChat Mini Program and designed an in-store program for its Shanghai Concept store that allows shoppers to discover their own individual and unique beauty using augmented reality and digital interfaces. Market sizes, market shares and forecasts for 34 of the world’s most dynamic markets. Where should skincare brands be focusing their marketing in 2021? There has been a cultural shift in terms of dating in China. As consumers become more culturally sophisticated, along with more favourable visa policies, China’s outbound travel market is one to watch over the next couple of years. Chengdu: With a population of 16 million, the Capital of Sichuan Province experienced 70.66% GDP growth from 2011-2017, While being phone obsessed may ring true in tier one cities, lower tiers still have some catching up to do! The flip side, however, is the chance to go viral with minimal marketing input. They are consciously looking for ways to better themselves and their lives. © Copyright 2019 Dragon Social Ltd. – All Right Reserved. American consumer giants and a slew of Chinese companies are now angling for a piece of the largest middle class market in the world. WeChat mini-programs have also helped facilitate this need for instant gratification, with users being able to access a fully fleshed out e-commerce experience without leaving WeChat! Demographics 05-09-2019. At the same time, convenience is highly valued given today’s faster pace of life. “Women are often the dominant players in household consumption. Consumers in this era can be divided into two categories: frugal-retired and wealthy-retired, with the former being uneducated and price-sensitive with the latter being educated and placing importance on quality over cost. This is followed by in-home food (14.3%), holidays (9%) and clothing and accessories (8.1%). July 29th, 2019. A Key characteristic of a Chinese consumer is the need for instant gratification. This has served to create an O20 experience for Sephora’s customers allowing them to book makeover appointments, share reviews, and more! When they see a product – they want it immediately. 10 Chinese Consumer Trends: What to Expect this 2019 and Beyond If there’s one thing global companies can’t overlook is China’s continuous growth in internet usage beyond its borders. Moreover, this study fills in the research gap about the association between consumers' CSR‐related activities in … In the coming decade, household consumption will grow by an average of 6% annually to reach RMB 56 trillion! For more on this topic check out our blog on household finance in China. Gen Z is the most technologically savvy, and the quickest to adopt the latest trends. Trends in the dining experience, menu optimization and new flavor, ingredients or food preparation methods. A global database of new consumer packaged goods launches in 86 markets. Mintel’s annual The Chinese Consumer 2019 Report tracks consumer spending across 15 market sectors, revealing the future opportunities with each category. Chinese consumers get bored very easily and are constantly looking for new and interesting ways to interact with brands. 9 Regular online shopping is the norm across the world. the 57% consumer average. in China reached 817 million according to SCMP’s China Internet Report. (A good example of this can be seen here) Chinese women have begun to place value on autonomy, ego, and confidence – brands should focus their marketing on these labels in order to successfully captivate them. This has led to a sense of entitlement among this generation with these consumers demanding high-quality goods and services. In 2018 China overtook Russia as the emerging country with the highest proportion of respondents planning to travel abroad. Mintel's Market Data Reports offer a quick and in-depth look at a market, providing Market Sizes, Market shares, Industry insights and 5 years forecasts. CONSULTING. D&G’s Chinese marketing advertisement that went viral for negatively portraying Chinese consumers. Chinese Consumer Behavior: 7 Key Features For Brands To Know, Top 10 China Digital Marketing Trends (2019). 29% of consumers say they are likely to get a new pet within the next ... 3 innovative beauty products to watch for in November 2020. Get in touch and we’ll guide you through! These consumers grew up at the start of the reform era which has strongly affected their consumer behavior. This can be evidenced by the fact 75% of Chinese netizens post online feedback on their purchases – 55% more than the US. Sephora became the first comprehensive beauty retailer to offer a fully social shopping experience. They are also the first digitally savvy generation meaning they are more likely to participate on social media platforms and purchase goods through e-commerce. Understand and compare consumers across 35 markets. 10 Most Popular Social Media Sites in China (2020 Updated), Luxury Brands: Localizing For Chinese Luxury Consumers, Double 12: The Sequel to Alibaba’s Single’s Day, 5 Ways to Pay Suppliers in China: An Analysis on The Pros & Cons, A Quick Guide on How To Optimize Your Chinese Content Marketing, How to Sell in China: Top 3 China Cross-border E-commerce Platforms, Recreational activities such as the cinema etc. The online market share commanded by Alibaba Group Holding, China's largest e-commerce player, is expected to fall by nearly 5 percentage points to 53.3% in 2019. The year … Chinese consumers want to feel valued and heard. Whether consumers are based in Mainland or overseas, the Chinese consumers’ behaviors—how they spend the money, where they spend the money, and how much they spend are—shaped by several factors. The first place to look to understand markets and consumers, enabling you to make better decisions faster. Looking to the future, the universal pursuit of health and wellness will continue to impact the beauty and personal care sector. are the most impacted, and non-essential … This not only helps the restaurant better appeal to single diners but was also great for creating some buzz on Chinese social media. Global, imported brands, in their mind, attract more direct and immediate positive attention – thus enabling them to gain more face. Between May and July 2019, we surveyed 5,400 respondents from 44 cities, representing approximately 90 percent of China’s GDP and half of its population. Given that average monthly wages for white-collar workers in 2018 were only RMB 7,665 this would represent a significant increase. This article will identify and explain the differences between these generations. Leading up to 1960s, it is estimated that up to 47 million died due to such harsh living conditions. Leisure activities that are ‘all-time favourites’ will have to re-invent themselves if they want to attract new consumers. Jessica is a law graduate from the University of Leeds with a strong interest in social media marketing and content creation. Chinese consumer: consumer behaviour in China, marketing opportunities, consumer profile and his purchasing power, recourse to consumer credit and household consumption expenditure. With increasing knowledge around food and consumption upgrade expected to continue, people are now pursuing better diets that are more nutritionally-balanced and natural. How will you stay ahead of the shifting consumer landscape and your competitors strategy? As time goes on, the demand for higher-quality products, particularly among younger generations, will accelerate and … ... can be partially explained by increasing “repertoire” behavior among Chinese consumers (see Figure 17). For Chinese women, their choice of spending for the coming year can be broken down into four key areas according to Nielsen China: Further, Nielsen’s data found that next year’s preferences for women showed a strong desire to upgrade their quality of life through better food, clothing, housing, and transportation. Since they grew up in a time of political upheaval and constant change they became accustomed to saving a large portion of their income in case of emergency. Chinese consumers are putting more emphasis on themselves as individuals and are keen to share these moments on social media. Haidilao is a great option for those who don’t want to eat alone! In addition, 86 percent of Chinese consumers consider food safety when buying food products and 52 percent consider it as the primary factor when buying or choosing food. China’s luxury spending sees no sign of cooling down in the coming years, McKinsey & Company stated in a new report released on April 26. Mintel's global public relations team is pleased to provide accredited journalists with access to our research, arrange interviews with our expert analysts and share the latest insights. An old Chinese proverb sums up its importance: “Men can’t live without face, trees can’t live without bark.”. This generation grew up during one of China’s most difficult periods called the Cultural Revolution. Chinese consumer behavior #3 – The Powerful Woman. To find out how Mintel Group Ltd has benefited from ERDF funding, Chinese consumers today are in pursuit of richer experiences and quality of life. The Chinese consumer is a complex hybrid of various behaviors. This need for instant gratification has also led to a huge increase in consumer spending and consumer debt. Platforms like XiaoHongShu and Weibo have added features specifically catering to this unique demand. Chinese Consumer Behavior #6 – Face Face is perhaps one of the most important aspects of Chinese consumer behavior. They prefer a tailored system that answers any questions they might have throughout the process. How will conflicting consumer behaviour disrupt the beauty and personal care landscape? This kind of spending includes spending on education as well as providing them with spending money. Shu‐Chuan Chu; Hsuan‐Ting Chen; Pages: 453-462; First Published: 27 December 2019 Chinese face is a way of receiving immediate recognition from others to maintain and/or enhance one’s status in society. A study conducted by Warveni Jap found that Chinese people purchased and used global brands to save face and maintain sound relationships within their social circles. These consumers tend to prefer to spend money on their children. Comparatively, the Chinese consumer is far more demanding, requesting more information about products and the company than shoppers anywhere else in the world. Face is perhaps one of the most important aspects of Chinese consumer behavior. Building a strong understanding of your target Chinese consumer’s behavior is the first step in successful brand expansion. With China’s younger generation (consumers aged 20-29) becoming the main consumption group, manufacturers and brands need to look into solutions that meet their demand for nutrition facts, consumption experiences and effective information channels.”, “Over the next five years, total consumer expenditure in beauty and personal care will grow at a CAGR of 7.0%. Each consumer report offers the primary research and in-depth data found in our market data reports alongside expert insights, trend analysis and market forecasting. However, by researching this, you will be putting your company and brand in the best possible position to succeed. She has recently completed an exchange at the University of New South Wales where she studied marketing. With more and more consumers pursuing a better quality of life and wanting more new life experiences, sectors such as holidays, leisure and entertainment, and clothing and accessories, have encouraged many consumers to self-indulge and spend more in 2018. However, they are still accustomed to saving their money. Available 24 hours a day, Mintel's global public relations team is pleased to provide accredited journalists with access to our research, arrange interviews with our expert analysts and share the latest insights across categories and countries. Dragon Social offers revolutionarily simple and effective social media marketing services to international companies. This is uncommon in the West – where consumers, for the majority, accept websites at face value due to a higher degree of trust in consumer protection agencies. China’s Consumer Trend Index remained high in the third quarter of 2019 Markets and Finances 11-19-2019 China’s Consumer Trend Index (CTI) stood at 114 points – a high level in the third quarter this year, according to the latest study of Nielsen, the global performance management company. Email marketing performance metrics to track and assess competitor and industry activity. The new Mintel research also reveals that total consumer expenditure in China grew 8.6% to reach RMB41,146 billion in 2018. Abstract Based on the rapid increase of China’s economy, Chinese online retail market contains the huge potential business opportunities to the companies who attempt to expand into Chinese market. Looking ahead, Mintel predicts that holidays, transportation, and personal finance and housing, will be the top three sectors with the highest growth in terms of consumer spending, reaching a CAGR (compound annual growth rate) of 12.8%, 10.2% and 10.1%, respectively, in the five years to 2023. This behavior has seen brands such as Sephora integrate various platforms and marketing strategies to engage with their customer base on a variety of different channels including T-Mall, JD.com, WeChat, and its own website Sephora.cn. The Chinese Consumer Shopping Behavior on Taobao DAN ZHAO 2012/6/10 . This is something more and more brands are incorporating in their WeChat marketing strategies. However, this has also led to two separate phenomena that have had a strong impact on Chinese consumer behavior: scams and immediate reviews: The Chinese government estimated that nearly one-third of people who regularly shop online have been duped by scam sites. This has led to an increase in omnichannel and O2O (Online 2 Offline) Shopping experiences. This helps foster positive interactions with a brand. Save my name, email, and website in this browser for the next time I comment. It predicted that Chinese shoppers (both at home and abroad) would spend approximately $180 billion (1.2 trillion RMB) on luxury goods by 2025, accounting for 40 percent of the worldwide consumption. The way consumers are expressing their individuality through their appearance is evolving and many category players are unprepared for this change. This has been steadily changing with more and more companies targeting these more rural areas, including Pinduoduo and JD.com. here on mistakes made by western companies! Chinese consumers want to experience pleasure without delay. The popular hot pot restaurant chain, Haidilao, has begun providing Teddy bears for customers eating alone. Chinese consumers will most likely always favor an item with better packaging, even if the product is of lower quality, showing the importance of considering face when selling in China. Mintel’s annual The Chinese Consumer Report, offering an overview of the key trends and spending behaviours affecting China’s consumer landscape over the last year, reveals that Chinese consumers are in pursuit of richer experiences and quality of life. These scams have led to a more nervous shopper – one who needs more assurances and direction during the shopping process. There are more than 140 self-made women billionaires in China today, making up more than 75% of all self-made women billionaires worldwide! There’s even social media platforms specifically dedicated to providing reviews on Chinese plastic surgery clinics! Furthermore, our research shows that they are becoming savvier spenders. Chinese consumer behavior during Chinese New Year and the implications for Thai businesses In China, people celebrate Chinese New Year (CNY) by bidding farewell to old things and welcoming new ones, making this the golden week for shopping. It’s predicted that these areas will become new drivers of growth in the Chinese economy. Latest findings from The Chinese Consumer Report shows that a staggering 91% of Chinese respondents* agree that when making a purchase, quality is more important than price; while over four in five (81%) are interested in trying something new than sticking to the familiar (eg buying a new product, going to a new holiday destination). Feed your curiosity with our expert analysis - from the key issues impacting society to geeky dives into products, markets and demographics.
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