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Source: MARKETING-INTERACTIVE

Needless to say, consumer behaviours have changed drastically post Covid. In an economic environment where the future is uncertain, Chinese consumers have adopted a consumption behaviour of emphasising value for money across all categories. The conditions that make it easy for them to downgrade their consumption are in place, and an increasing number of them are enjoying shopping for low-priced goods.

According to Hakuhodo Institute of Life and Living Shanghai’s report named “The Dynamics of Chinese People” jointly conducted with the School of Advertising at the Communication University of China, 80% of Chinese consumers feel they have slipped into a “consumption downgrade”.

Consumer confidence among Chinese consumers was 67.3 points out of 100, down from 74 points in the survey in 2019, reflecting major trends such as consumption downgrading, frugal mindsets, and emphasising value for money. The online survey had a sample size of 3,000 people aged between 20 and 59 living in China.

At the same time, analysis of the digital payment app usage data of 400 Chinese consumers revealed that the number of people whose spending increased compared to 2023 and was roughly the same (42.5%) as the number whose spending decreased (41.7%). In addition, the average spending in the insurance, food and beverages, hotels and travel, culture and leisure, electronic devices, housing, and medical and health categories increased compared to 2023.

While welcoming the current situation in which low-priced products of stable-quality are available, the majority feel that the media and key opinion leaders (KOLs) are excessively fueling the recent consumption downgrading mood, with 40% of respondents saying that the consumption downgrading mood is affecting their own consumption behaviour.

In light of the behavioural changes, how can brands adapt to the trend and engage with a wider audience? MARKETING-INTERACTIVE turned to industry professionals to explore.

Check out what they had to say.

Click on each picture to watch a video!

1. Weilin Zhao, senior researcher, Hakuhodo Institute of Life and Living Shanghai

2. Elisa Harca, co-founder, Red Ant Asia

3. Kevin Choi, vice president, Havas Creative China

Join us this coming 17 June for #Content360 Hong Kong, an insightful one-day event centered around responsible AI, creativity VS influencers, Xiaohongshu and more. Let’s dive into the art of curating content with creativity, critical thinking and confidence!

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https://www.marketing-interactive.com/explainit-how-brands-cope-with-behavioural-change-among-chinese-consumers