866-997-4948(US-Canada Toll Free)

Chinese Lifestyles 2014 - Embracing the Change - China - April 2014

Published By :

Mintel

Published Date : May 2014

Category :

Lifestyle

No. of Pages : 240 Pages

Operators need to re-adjust their products and services package to target the demand of the mass consumers rather than just the lucrative customers. Chinese aspiration to lead a healthy lifestyle is indeed another factor to direct their consumption to. Increasing average income indicates that Chinese are becoming more willing to pay for better quality to ensure improvement in their lifestyle as they have more disposable incomes.
Table of Content

Introduction

Methodology
Regional classifications
Abbreviations

Executive Summary

Income growth drives consumer spending
Figure 1: Changes in spending over the past year, December 2013
Anti-extravagance campaign helps nurture sustainable consumption
Saving is still number one priority for all
The top aspiration is to lead a healthier lifestyle
Figure 2: Personal goals for 2014, December 2013
Family-centric is a powerful marketing tool
Growing interest in holidays – a new essential horizon in consumer’s lifestyle
Figure 3: Fastest-growing market sectors, at current prices, by % growth, 2013-18

China Today – The Economy

Key points
What we think
China economy reforms and is set for more stable growth
Figure 4: Annual GDP and year-on-year growth rate, 2004-13
Regional economic growth
Eastern Region
Figure 5: GDP and growth rate in Eastern region, 2013
Northeast Region
Figure 6: GDP and growth rate in Northeast region, 2013
Central Region
Figure 7: GDP and growth rate in Central region, 2013
Western Region
Figure 8: GDP and growth rate in Western region, 2013
Growing per capita income drives consumption
Figure 9: Per capita income level in rural and urban, China, 2008-13
Figure 10: CAGR for per capita annual income, disposable income and cash living expenditure for consumption, by region, 2009-12
China aims to drive sustainable domestic consumption
Figure 11: Retail sales and annual growth rate, at current prices, 2008-13
Saving for the future remains important, Chinese contribute more income into savings
Figure 12: Chinese’s savings deposit and income level, 2008-13
Spring Festival spending
Figure 13: National retail and catering sales during Chinese New Year in China, 2009-14

China Today – The People

Key points
Rapid urbanisation – more than half of the population stay in urban areas
Figure 14: Population, by urban and rural, 2007-13
The impact of the one-child policy
Figure 15: Population and natural growth rate, 2007-13
Relaxation of the one-child policy
Ageing population
Figure 16: Proportion of three age groups, 2007-13
Migration of rural workers raising the urban employment rate
Figure 17: Employment, self-employment and unemployment, 2007-12
Continued reform of SOEs to focus on talent
Figure 18: Urban employees working in different types of enterprise, 2007-12
Middle class growth driven by economic shifts in Western/Central regions and lower tier cities
Figure 19: The growth of China’s middle class, 2000-15

Expenditure Overview

Key points
Sector breakdown
Figure 20: Consumer expenditure, by sector (RMB billion), 2013
Optimistic outlook for the next five years
Figure 21: Best- and worst-case forecast total value sales, 2008-18
Winners in the next five years
Figure 22: Fastest-growing market sectors, at current prices, by % growth, 2013-18
Slower growth sectors in the next five years
Figure 23: Consumer sectors with weaker growth, at current prices, by % growth, 2013-18 (est)

In-home Foods

Key points
What we think
In-home foods market grows steadily
Figure 24: China in-home foods market value, 2008-13
Growth is expected to continue
Figure 25: Best- and worst-case forecast value sales of the in-home foods market, at current prices, 2008-18
Winners for 2014
Western-style foods have larger space for growth
Losers for 2014
Consumers moving away from junk food
Changing consumer habits
Figure 26: Changes in spending habits on in-home foods in 2013, January 2014

Foodservice (Eating Out and Takeaways)

Key points
What we think
The foodservice market keeps expanding
Figure 27: China foodservice market value, 2008-13
Growth continues at a slower rate
Figure 28: Best- and worst-case forecast value sales of the China foodservice market, at current prices, 2008-18
Winners for 2014
Consumers are looking for healthier food
Losers for 2014
Spending on business meals and government banquets set to decline
Changing consumer habits
Figure 29: Changes in spending habits on eating out in 2013, January 2014

Non-alcoholic Drinks

Key points
What we think
Healthy growth in the non-alcoholic drinks market
Figure 30: Non-alcoholic drinks market value, 2008-13
Slowing but healthy growth in the next five years
Figure 31: Best- and worst-case forecast value sales of the non-alcoholic drinks market, at current prices, 2008-18
Breaking the norms to appeal to the young
Female consumers provide huge potential amid challenges on the way
Changing consumer habits
Figure 32: Changes in spending habits on non-alcoholic drinks in 2013, January 2014

Alcoholic Drinks

Key points
What we think
In-home alcoholic drinks
In-home alcoholic drinks market is undergoing a reconstruction
Figure 33: In-home alcoholic drinks market value, 2008-13
Slowing but steady growth
Figure 34: Best- and worst-case forecast value sales of in-home alcoholic drinks market, at current prices, 2008-18
Winners for 2014
Losers for 2014
Changing consumer habits
Figure 35: Changes in spending habits on in-home alcoholic drinks in 2013, January 2014
Out-of-home alcoholic drinks
Strong growth amid the anti-extravagance campaign
Figure 36: Out-of-home alcoholic drinks market value, 2008-13
Slower but still healthy growth
Figure 37: Best- and worst-case forecast value sales of the out-of-home alcoholic drinks market, at current prices, 2008-18
Targeting female drinkers becomes increasingly important
Upper-mid-range baijiu brands feel the pressure
Lack of knowledge limits the future development of wine and Western spirit segments
Changing consumer habits
Figure 38: Changes in spending habits on out-of-home alcoholic drinks in 2013, January 2014

Beauty and Personal Care

Key points
What we think
Beauty and personal care market grows steadily
Figure 39: Beauty and personal care market value, 2008-13
A new chapter for growth
Figure 40: Best- and worst-case forecast value sales of the beauty and personal care market, at current prices, 2008-18
Male grooming is the most robust market
Hair and body wash sectors need to develop winning strategies to counter shoppers’ repertoire behaviour
Changing consumer habits
Figure 41: Changes in spending habits in the beauty and personal care market, January 2014

OTC and Pharmaceuticals

Key points
What we think
The OTC and pharmaceuticals market has been grown robustly over the last five years
Figure 42: OTC and pharmaceuticals market value, 2008-13
Widening access fuels future growth
Figure 43: Best- and worst-case forecast value sales of the OTC and pharmaceuticals market, at current prices, 2008-18
The OTC sector is expected to see steady growth
Consolidation and diversification for large chains
Changing consumer habits
Figure 44: Changes in spending habits on healthcare products in 2013, January 2014

Clothing and Accessories

Key points
What we think
Rapid online retail growth spurs apparel sales
Figure 45: Clothing and accessories market value, 2008-13
Continued urbanisation will drive strong future growth
Figure 46: Best- and worst-case forecast value sales of the clothing and accessories market, at current prices, 2008-18
Changing consumer habits
Figure 47: Changes in spending habits on clothing and accessories in 2013, January 2014

Household Care

Key points
What we think
The household care market undergoes robust growth
Figure 48: Household care market value, 2008-13
Growth will slow down but remain strong
Figure 49: Best- and worst-case forecast value sales of the household care market, at current prices, 2008-18
Winners for 2014
Losers for 2014
Changing consumer habits
Figure 50: Changes in spending habits on household care in 2013, January 2014

Technology and Communications

Key points
What we think
Healthy growth in technology and communications
Figure 51: Technology and communications market value, 2008-13
Positive perspective for future expansion
Figure 52: Best- and worst-case forecast value sales of the technology and communications market, at current prices, 2008-18
Smartphones take over
The era of 4G
Tablet versus laptop versus desktop
Changing consumer habits
Figure 53: Changes in spending habits on technology and communications in 2013, January 2014

Leisure and Entertainment

Key points
What we think
Leisure and entertainment spending grows despite weaker economy
Figure 54: Leisure and entertainment market value, 2008-13
The leisure and entertainment market has a positive outlook
Figure 55: Best- and worst-case forecast value sales of the leisure and entertainment market, at current prices, 2008-18
Changing consumer habits
Figure 56: Changes in spending habits on leisure and entertainment in 2013, January 2014

Home

Key points
What we think
Steady growth as homeowners fill and furnish their homes
Figure 57: Home market value, 2008-13
Middle class expansion will fuel future growth
Figure 58: Best- and worst-case forecast value sales of the home market, at current prices, 2008-18
Changing consumer habits
Figure 59: Changes in spending habits on home in 2013, January 2014

Transport

Key points
What we think
Consumers keep spending on transport
Figure 60: Transport market value, 2008-13
Expenditure on transport is expected to grow further
Figure 61: Best- and worst-case forecast value sales of the transport market, at current prices, 2008-18
Passenger car sales boom
Used car market awaits to take off
High-speed railway poses threat to air travel
Changing consumer habits

Holidays

Key points
What we think
The holidays market is experiencing strong growth
Figure 62: Holidays market value, 2008-13
Holidays market seeing an optimistic future
Figure 63: Best- and worst-case forecast value sales of the holidays market, at current prices, 2008-18
Changing consumer habits
Figure 64: Changes in spending habits on holidays in 2013, January 2014

Personal Finance and Housing

Key points
What we think
Strong spending growth in personal finance while slight upturn in housing expenditure
Figure 65: Personal finance and housing market value, 2008-13
Life insurance has benefited from further market liberalisation
Non-life insurance is catching up
Housing expenditure growth becomes more stabilised
Consumer sophistication in wealth management will drive growth in personal finance
Figure 66: Best- and worst-case forecast value sales of the personal finance and housing market, at current prices, 2008-18
Increasing awareness of wealth management led by the rising middle class
Greater health concern will continue to drive demand for wellbeing insurance
Spending on rent will continue to rise
Healthy financial status means that consumers are still mostly relying on savings rather than borrowing on credit
Figure 67: Current financial situation, December 2013

Miscellaneous Expenditure

Key points
What we think
Miscellaneous
Figure 68: Miscellaneous expenditure market value, 2008-13
Discretionary spending will help drive new services sectors
Figure 69: Best- and worst-case forecast value sales of the miscellaneous expenditure market, at current prices, 2008-18

The Consumer – Changing Spending Habits

Key points
Consumers are spending more on both essentials and non-essentials
Figure 70: Changes in spending over the past year, December 2013
Holidays – the new essential for the Chinese consumer
Falling prices reflected in alcohol spending
Young adults in their twenties drive the leisure economy
Figure 71: Changes in selected spending over the past year, by age, December 2013
Higher earners are spending more on lifestyle-related upgrade
Figure 72: Changes in spending over the past year, by the highest and lowest household income groups, December 2013

The Consumer – Personal Goals and Aspirations

Key points
Top goals: healthy living and more family time
Figure 73: Personal goals for 2014, December 2013
Figure 74: Selected “will definitely do” personal goals for 2014, by income groups, December 2013
Younger people are more prepared to let their health take second place
Younger men are keen to improve their appearances
Figure 75: Personal goals for 2014 – “take better care of my appearance”, by age and gender, December 2013
Good health holds the key to personal success
Figure 76: Most important factors in achieving personal goals, December 2013
Self-made success is the Chinese dream

The Consumer – Consumer Views on Premium Pricing

Key points
Figure 77: Product qualities that would convince consumers to pay a premium price, December 2013
Broad agreement on what makes a product worth paying more for
Functional performance still prevails…
…but there are different opportunities for communication when marketing to different consumer groups
Figure 78: Important factors for paying a premium price, by age, December 2013

The Consumer – Consumer Attitudes towards Family

Key points
Figure 79: Attitudes towards family, December 2013
Spending time with family carries more meaning than spending money on family
Age groups consistent in their rejection of previous generations’ lifestyle
Signs that the reality of an ageing society could be affecting consumer mindsets
Figure 80: Agreement with “the traditional thought of ‘relying on your children when ageing’ is out of date”, by gender and household income, December 2013

The Consumer – Consumer Attitudes towards Achieving Happiness and Success

Key points
Figure 81: Attitudes towards success and happiness, December 2013
Achieving the balance in life is the most important
More individualistic view about happiness than about success
Figure 82: Agreement with “one is successful only when their achievement is recognised by others”, by gender and time lived in the region, December 2013

The Consumer – Consumer Attitudes towards Conspicuous Consumption and Luxury Spending

Key points
Showing that “I am living a good life” still matters…
Figure 83: Attitudes towards conspicuous consumption, December 2013
…but what’s changing is how people show they are living a good life
Figure 84: Attitudes towards luxury, December 2013
The future for luxury drink brands is about selling the lifestyle it associates with
Figure 85: Any agree with selected statements of attitudes towards luxury and conspicuous consumption, by income group, December 2013
Figure 86: Proportion of consumers who plan to increase their spending, by attitudes towards luxury, December 2013
Luxurious experiences don’t have to be enjoyed out of the home

The Consumer – Attitudes towards Achieving Personal Goals

Key points
Figure 87: Attitudes towards achieving personal goals, December 2013
Investing to improve knowledge about health and wellness
Different needs for financial products
Income is an important differentiator when deciding how to spend your leisure time
Figure 88: Attitudes towards leisure time management, by household income and marital status, December 2013
Different approaches to achieving work/life balance across city tiers
Figure 89: Agreement with “It’s easier to achieve work/life balance in smaller cities than in big ones”, by city and tier, December 2013
Signs that the high cost of child-raising is making people hesitate about having more children
Figure 90: Agreement with “I am willing to have more than one child if I am qualified”, by region, December 2013

Appendix – Home Ownership

Figure 91: Home ownership, December 2013
Figure 92: Home ownership, by demographics, December 2013

Appendix – Changes in Spending

Figure 93: Changes in spending over the past year, December 2013
Figure 94: Changes in spending over the past year – Food, by demographics, December 2013
Figure 95: Changes in spending over the past year – Eating out, by demographics, December 2013
Figure 96: Changes in spending over the past year – Alcoholic drinks, by demographics, December 2013
Figure 97: Changes in spending over the past year – Alcoholic drinks, by demographics, December 2013
Figure 98: Changes in spending over the past year – Non-alcoholic drinks, by demographics, December 2013
Figure 99: Changes in spending over the past year – Beauty products and toiletries, by demographics, December 2013
Figure 100: Changes in spending over the past year – Healthcare products, by demographics, December 2013
Figure 101: Changes in spending over the past year – Household care, by demographics, December 2013
Figure 102: Changes in spending over the past year – Clothing and accessories, by demographics, December 2013
Figure 103: Changes in spending over the past year – Technology and communications, by demographics, December 2013
Figure 104: Changes in spending over the past year – Holidays, by demographics, December 2013
Figure 105: Changes in spending over the past year – Leisure/entertainment, by demographics, December 2013
Figure 106: Changes in spending over the past year – Home, by demographics, December 2013

Appendix – Personal Goals

Figure 107: Personal goals for 2014, December 2013
Figure 108: Personal goals for 2014 – Have a healthier diet, by demographics, December 2013
Figure 109: Personal goals for 2014 – Exercise more, by demographics, December 2013
Figure 110: Personal goals for 2014 – Find a job/new job, by demographics, December 2013
Figure 111: Personal goals for 2014 – Move home/buy a new home, by demographics, December 2013
Figure 112: Personal goals for 2014 – Get my household finances in order, by demographics, December 2013
Figure 113: Personal goals for 2014 – Take better care of my appearance, by demographics, December 2013
Figure 114: Personal goals for 2014 – Travel to new places/go on more holidays, by demographics, December 2013
Figure 115: Personal goals for 2014 – Learn a new skill/get a new hobby, by demographics, December 2013
Figure 116: Personal goals for 2014 – Have a better work/life balance over time^, by demographics, December 2013
Figure 117: Personal goals for 2014 – Spend more time with family, by demographics, December 2013
Figure 118: Personal goals for 2014 – Go out more, by demographics, December 2013
Figure 119: Personal goals for 2014 – Do home improvements, by demographics, December 2013
Figure 120: Personal goals for 2014 – Give to charity/volunteer, by demographics, December 2013

Appendix – Important Factors to Achieve Personal Goals

Figure 121: Important factors for achieving personal goals, December 2013
Figure 122: Most popular important factors for achieving personal goals, by demographics, December 2013
Figure 123: Next most popular important factors for achieving personal goals, by demographics, December 2013

Appendix – Attitudes towards Achieving Personal Goals

Figure 124: Attitudes towards achieving personal goals, December 2013
Figure 125: Most popular attitudes towards achieving personal goals, by demographics, December 2013
Figure 126: Next most popular attitudes towards achieving personal goals, by demographics, December 2013
Figure 127: Other attitudes towards achieving personal goals, by demographics, December 2013

Appendix – Consumption Upgrade

Figure 128: Important factors for paying a premium price, December 2013
Figure 129: Most popular important factors for paying a premium price, by demographics, December 2013
Figure 130: Next most popular important factors for paying a premium price, by demographics, December 2013
Figure 131: Other important factors for paying a premium price, by demographics, December 2013

Appendix – Personal Values

Figure 132: Attitudes towards lifestyle, December 2013
Figure 133: Agreement with the statement ‘Taking good care of parents is more about spending quality time with them rather than financially supporting them’, by demographics, December 2013
Figure 134: Agreement with the statement ‘The traditional thought of ‘relying on your children when ageing’ is out of date’, by demographics, December 2013
Figure 135: Agreement with the statement ‘It is important to spend time with family during traditional Chinese festivals’, by demographics, December 2013
Figure 136: Agreement with the statement ‘Feeling happy with myself is more important than being perceived happy by others’, by demographics, December 2013
Figure 137: Agreement with the statement ‘One is only successful when one’s achievement is recognised by others’, by demographics, December 2013
Figure 138: Agreement with the statement ‘I am willing to spend on things that can show I am living a good life’, by demographics, December 2013
Figure 139: Agreement with the statement ‘It is important to live in a different way from our parents’, by demographics, December 2013
Figure 140: Agreement with the statement ‘Financial wellbeing is not the only important factor for a good life’, by demographics, December 2013
Figure 141: Agreement with the statement ‘Happiness is more about finding the balance rather than achieving the best for everything’, by demographics, December 2013
Figure 142: Agreement with the statement ‘Uniqueness/exclusivity of a product is worth paying more for than a big brand name’, by demographics, December 2013
Figure 143: Agreement with the statement ‘I prefer to spend on luxury experience than on luxury products’, by demographics, December 2013
Figure 144: Agreement with the statement ‘It is important for me to show people how much I’ve spent on self-indulgence’, by demographics, December 2013

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title *
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *