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

The Chinese Consumer - China - April 2017

Published By :

Mintel

Published Date : May 2017

Category :

Lifestyle

No. of Pages : N/A

Consumers have become more conservative spenders from seeing the slowing economy and feeling more pressure both from work and financially. Meanwhile they are eager to live a healthier and more exciting lifestyle. This requires them to learn and become smarter shoppers – being able to gauge a product’s quality and value before paying so as to make the most out of their budget to enjoy an upgraded lifestyle – featuring a healthier diet and more experiential leisure activities to not only empower the body but also enlighten the mood.

Table of Content

OVERVIEW
What you need to know
Covered in this Report
Demographic classification
Figure 1: Definition of low/mid/high MHI groups, by city tier

EXECUTIVE SUMMARY
China today
The economy
The people
The expenditure
Figure 2: Changes in spending, average across sectors, 2017 vs 2016
Figure 3: Consumer expenditure and growth rate, by sectors, 2016
Figure 4: Changes in spending, January 2017
Figure 5: Best- and worst-case forecast total consumer expenditure, 2011-21
The Consumer
Life pursuits: a healthy lifestyle focusing on diet and holiday experience
Figure 6: Life priorities – percentage of consumers claiming “will definitely do”, 2017 vs 2014
Figure 7: Ways of spending for improving living quality, word cloud, January 2017
Good value takes into account price, quality, function and endurance
Figure 8: Definition for “good value for money”, word cloud, January 2017
Consumers need better proof of product quality
Figure 9: Definition of a high-quality product, 2017 vs 2014
Brand and technology play bigger roles in the trading up process
Figure 10: Features that are worth paying more for, 2017 vs 2013
What we think

CHINA TODAY – THE ECONOMY
A consumption-driven economy
Figure 11: Annual GDP and growth rate, 2012-16
Figure 12: GDP contributions, by industrial sector, 2012-16
Online retailing continues to boom
Figure 13: Retail sales of consumer goods, by online and offline channels, 2015 and 2016
Overseas shopping reaches a remarkable size
Figure 14: Total B2C cross-border online retail value and growth rate, 2012-16

CHINA TODAY – THE PEOPLE
Relaxation of one-child policy drives immediately address workforce issues
Figure 15: Total China population and growth rate, 2012-16
Shrinking workforce pushes businesses to look for other ways to improve productivity
Figure 16: China population structure, by age, 2012-20
Many over-55s continue to work after retirement
Slower income growth makes financial management more important
Figure 17: Annual disposable income and growth rate, 2012-16

EXPENDITURE OVERVIEW
Total Chinese consumer expenditures grew by 10.5% in 2016
Figure 18: Consumer expenditure, by sector, 2016
Increasing spending as investment for future
Increasing spending for health and experience
Figure 19: Consumer expenditure and growth rate, by sector, 2016
Increasing spending but more prudently
Figure 20: Changes in spending, average across sectors, 2017 vs 2016
Holidays take over clothing as the spending priority in tier one to three cities
Figure 21: Changes in spending, January 2017
Outlook for 2021
Figure 22: Best- and worst-case forecast total consumer expenditure, 2011-21
Winning sectors in the next five years
Transportation, Holidays and Leisure experience
OTC and pharmaceuticals, in-home food and foodservice
Figure 23: CAGR in consumer expenditure, by sector, 2016-21

IN-HOME FOOD
What you need to know
What we think
Stable growth in the deepening economic slowdown
Figure 24: Consumer expenditure in in-home food, 2011-16
Better-for-you options with proof of high quality driving further growth
Figure 25: Best- and worst-case forecast for in-home food expenditure, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
Figure 26: Spending habit change in in-home food, 2016 vs 2017
Having an “imported” label does not guarantee sales

FOODSERVICE (EATING OUT AND TAKEAWAYS)
What you need to know
What we think
Continuous development of food delivery system and demand for experiential consumption drive expenditure on foodservice
Figure 27: Consumer foodservice expenditure in China, 2011-16
Favourable policies and foodservice operators’ going healthy drive future growth
Figure 28: Best- and worst-case forecast for foodservice expenditure, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
People are spending more on foodservice, especially young females
Figure 29: Spending habit change in foodservice, 2016 vs 2017
Restaurants with a clear focus stand out as most popular
Good in-store ambience is critical in deciding a dining venue
A healthy diet: balanced nutrition and fresh ingredients are most valued, while awareness of superfoods remains low

NON-ALCOHOLIC DRINKS
What you need to know
What we think
Premiumisation as more real and specific
Figure 30: Consumer non-alcoholic drinks expenditure in China, 2011-16
Light and functional beverages will continue to be winners
Figure 31: Best- and worst-case forecast for non-alcoholic drinks, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
Spending habit stays the same as last year
Figure 32: Spending habit change in non-alcoholic drinks, 2016 vs 2017
Consumers are more cautious with the sweetener
Extra health benefits are highly valued

ALCOHOLIC DRINKS – IN HOME AND OUT OF HOME
Key points
What we think
Recovering since 2015
Imported products drive in-home alcoholic drinks spending
Figure 33: Consumer expenditure on alcoholic drinks in home, 2011-16
Wine and beer help drive on-trade expenditure
Figure 34: Consumer expenditure on alcoholic drinks out of home, 2011-16
Future growth drivers: desire for high-quality products and a trendy lifestyle
In-home
Figure 35: Best- and worst-case forecast of expenditure of alcoholic drinks in home, at current prices, 2011-21
Out of home
Figure 36: Best- and worst-case forecast value sales of the alcoholic drinks out of home, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
Cutting spending on alcoholic drinks
Figure 37: Spending habit change in alcoholic drinks, 2016 vs 2017
Western spirits need to find a way to grow
Online plays a big role in selling and marketing alcoholic drinks

BEAUTY AND PERSONAL CARE
What you need to know
What we think
Small segments boom while daily products rely on premiumisation
Figure 38: Consumer expenditure in beauty and personal care, 2011-16
Segmented functional benefits lead future trend
Figure 39: Best- and worst-case forecast for beauty and personal care expenditure, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
Mixed reasons behind higher expenditure
Figure 40: Spending habit change in beauty products and toiletries, 2016 vs 2017
Marketing the importance of self-rewarding and pampering
Sophisticated consumers raise the standard of quality

OTC AND PHARMACEUTICALS
What you need to know
What we think
Ageing society and pursuit of healthier life drive expenditure
Figure 41: Consumer expenditure in OTC and pharmaceuticals, 2011-16
Changing purchase habit: from hospital to pharmacies or clinics
Figure 42: Best- and worst-case forecast for OTC and pharmaceuticals expenditure, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
Not only seniors spend more on health
Figure 43: Spending habit change in healthcare and pharmaceutical products, 2016 vs 2017
Figure 44: Spending habit change in healthcare and pharmaceutical products, by age, December 2016
Illness prevention is foundation of better living quality
More resources to cultivate rational consumers

CLOTHING AND ACCESSORIES
What you need to know
What we think
Personalisation, diversification and demand for higher quality drive clothing and accessory expenditure
Figure 45: Consumer expenditure in clothing and accessories, 2011-16
Trading up and individualisation to drive future growth
Figure 46: Best- and worst-case forecast for clothing and accessories expenditure, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
Clothing and accessory spending remains robust
Figure 47: Spending habit change in clothing and accessories, 2016 vs 2017
Need, function and value outweigh cheap price
Consumers want contemporary, individualistic yet classic clothing

TECHNOLOGY AND COMMUNICATION
What you need to know
What we think
Growth dragged down by a saturated mobile phone market
Figure 48: Consumer expenditure in technology and communications, 2011-16
Moderate growth over the next five years
Figure 49: Best- and worst-case forecast for technology and communication expenditure, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
The potential of female consumers should not be overlooked
Lack of breakthrough innovations to drive spending amongst Mintropolitans
Figure 50: Spending habit change in technology and communications, 2016 vs 2017
Technology products ranked as the top spending to improve quality of life
Non-Mintropolitans show higher potential to upgrade smartphones
Product quality is key to fostering favourability towards technology brands
Family-related features, a market opportunity for wearable devices

HOUSEHOLD CARE
What you need to know
What we think
Household care expenditure increases slowly
Figure 51: Consumer expenditure in household care, 2011-16
Future opportunities: adapting to the evolving lifestyles
Figure 52: Best- and worst-case forecast for household care expenditure, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
25-29-year-old women and tier two and three cities are growth drivers
Figure 53: Spending habit change in household care, 2016 vs 2017
Gentle cleaning, more frequently is the trend
Greater demand for products that cater to emotional wellbeing

HOME
What you need to know
What we think
Urbanisation and pursuit of quality living drive home expenditure
Figure 54: Consumer expenditure in home, 2011-16
Future needs: a natural, clean and smart home
Figure 55: Best- and worst-case forecast for home expenditure, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
Home spending remains stable
Figure 56: Spending habit change in home, 2016 vs 2017
Buying home appliances is amongst the key indicators of better living quality
High earners and families with kids tend to own more niche smart home devices

TRANSPORT
What you need to know
What we think
Consumer expenditure on transport close to RMB 2 trillion
Figure 57: Transport expenditure in China, 2011-16
Newcomers seeking chances to reshape the industry
Figure 58: Best- and worst-case forecast for transport expenditure, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
The bigger, the better
Making more confident decisions
Car buyers refuse to sacrifice experience for budget
Experienced maintainers are leaving 4S stores

LEISURE AND ENTERTAINMENT
What you need to know
What we think
Thriving steadily due to the pursuit of experimental activities
Figure 59: Consumer expenditure in leisure and entertainment, 2011-16
Fitness drives future growth
Figure 60: Best- and worst-case forecast for leisure and entertainment expenditure, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
The leisure and entertainment sector will continue seeing healthy growth
Figure 61: Spending habit change in leisure and entertainment, 2016 vs 2017
Going to gym is likely to become part of daily routine
Higher standard for online games: an excellent viewing and listening experience and an exciting storyline
A particular penchant for family-focused recreations
Parents are more interested in VR technology

HOLIDAY
What you need to know
What we think
Steadily growing but requiring higher level of differentiation
Figure 62: Consumer expenditure in holiday, 2011-16
Short-haul travels drive future growth
Figure 63: Best- and worst-case forecast for holiday expenditure, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
30-39s and females aged 25-29 are enthusiastic holiday spenders
Figure 64: Spending habit change in holiday, 2016 vs 2017
Cruise travel is getting popular because it is fun, safe and value for money
Enjoying natural scenery is more appealing than shopping
Relationship enhancement is an attractive marketing claim
Focusing on providing “local” tastes

PERSONAL FINANCE AND HOUSING
What you need to know
What we think
The fastest-growing sector in 2016
Figure 65: Personal finance and housing expenditure in China, 2011-16
Evolving to fulfil consumers' growing financial services demand
Figure 66: Best- and worst-case forecast for personal finance and housing expenditure, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
Convenience is key, discount is a trigger in payment preferences
Females taking more wealth management responsibilities
Consumer experience means more than good customer service attitude

MISCELLANEOUS
What you need to know
What we think
Growth in many sectors had slowed due to market maturity
Figure 67: Consumer expenditure in miscellaneous, 2011-16
Future demand for higher quality will buoy category spending
Figure 68: Best- and worst-case forecast for miscellaneous, at current prices, 2011-21
Winners for 2017
Losers for 2017
Key consumer findings
Adapting to China’s “New Normal”
China’s consumers becoming more pet-friendly

THE CONSUMER – WHAT YOU NEED TO KNOW
Holiday experience becomes a key life pursuit
Spending priorities associated with what brings higher living quality
Value is determined by price, quality, function and endurance
Facts speak louder than brand when judging the “quality”
Higher willingness to pay premium for well-known brands and technology

LIFE PURSUITS
Healthy lifestyle remains as the top priority
Figure 69: Goals for next year (2017), January 2017
The time to market new holiday destinations
Figure 70: Goals for next year – percentage of consumers claiming “will definitely do”, 2017 vs 2014
Striving for a balance between finance and personal life
Figure 71: Percentage of consumers claiming “will definitely get my household finances in order”, by age, 2017 vs 2014
More people want to give back to society
Figure 72: Goals for next year – percentage of consumers claiming “will definitely do”, by age, January 2017
Young generation pays most attention to appearance
Females are more ambitious
Figure 73: Goals for next year – percentage of consumers claiming “will definitely do”, by gender, January 2017

WHAT DRIVES LIFE QUALITY?
Products vs experiences
Figure 74: Ways of spending for improving living quality, top 10 items mentioned, January 2017
Travelling: most commonly acknowledged way of improving living quality
Figure 75: Ways of spending for improving living quality, word cloud, January 2017
Demographic highlights
Progressing through beauty, technology, fashion and holidays as people age
Figure 76: Selected ways of spending for improving living quality, by age, January 2017

DEFINITION FOR “GOOD VALUE FOR MONEY”
No more about just a low price
Figure 77: Definition for “good value for money”, word cloud, January 2017
Various ways of assessing the price
Figure 78: Definition for “good value for money” (Open-ended), January 2017
Demographic highlights
Males value durability
Young people value good product appearance

WHAT DOES A “HIGH-QUALITY PRODUCT” MEAN?
Objective facts speak louder than the brand
Figure 79: Definition of high-quality product, 2017 vs 2014
Overseas origin further declines in significance
Men and women make decisions differently
Older consumers read facts; younger ones buy in endorsements
Figure 80: Definition of high-quality product, by age, Jan 2017

WHAT ARE WORTH PAYING MORE FOR?
Biggest increase in willingness to pay for cutting-edge technology
Figure 81: Features that are worth paying more for, 2017 vs 2013
“Well-known brand” has an evolving role
Figure 82: Definition for high-quality product, by consumers who think it’s worth paying more for well-known brands vs those who do not, January 2017

MEET THE MINTROPOLITANS
Upgrading through experiences
Figure 83: Selected ways of spending for improving living quality, by consumer segmentation, Jan 2017
More detail-oriented in product quality assessment
Figure 84: Selected features that are associated with the definition for high-quality product, by consumer segmentation, Jan 2017
Trading up for brand, technology and individuality
Figure 85: Selected features that are worth paying more for, by consumer segmentation, Jan 2017

APPENDIX – CONSUMER EXPENDITURE
Figure 86: Consumer expenditure, by sector, 2011-21

APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

List of Table

NA

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 *