Based on interviews with 10,000 consumers aged 18 to 65, in 44 cities, a Mckinsey Report of April, 2016 finds that, despite current economic downturn, Chinese consumers remain confident—and in 2015 they continued to substantially increase spending within and outside China. Nevertheless, there is regional divergence, as in Harbin, where consumer confidence faces steep decline.
There are distinctive shifts from products to services, from mass products to premium brands (including loyalty to top international brands), from mere goods to lifestyle, health and well-being, from Online to O2O (Online-to-Offline), from in-store shopping to associated leisure experience on-site such as restaurants and cinemas, and from individual to joint family leisure activities.
Click here for a Summary interview with podcast.
Click here for the 2016 McKinsey China Consumer Report - The Modernization of the Chinese Consumer, with the following synopsis -
"The eyes of the world are on the Chinese consumer. Cooling economic growth, a depreciating currency, and a gyrating stock market are making political and business leaders concerned that China’s economic dream may have finally ended, and tough times lie ahead. Despite the gloomy news about the state of the economy, consumer confidence has remained surprisingly resilient over the past few years, as salaries have continued to rise and unemployment has stayed low. Chinese consumers remain upbeat about their futures. However, beneath this statement lurks significant change. The days of broad-based market growth are coming to an end as consumers become more selective about where they spend their money. Spend is shifting from products to services, and from mass to premium segments. Consumers are seeking a more balanced life, where health, family, and experiences take priority. In short, our research suggests that winning in the China market will become more challenging for consumer goods companies. For those that get it right, however, the reward will be substantial".
"The survey results also highlighted the astounding popularity of internationaltravel among Chinese consumers and their exceptionally rapid adoption of trends such as mobile payments. In addition, the study confirmed the great variation in consumer behavior among China’s 22 city-clusters. Cluster differences have even increased in recent years, despite the increased flow of information between clusters online and growth in domestic travel."
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