2024
8
China Trends in Offline Retailing Report 2024
2024-12-02T18:02:00+00:00
REPF6471922_6D62_4026_8C9C_8AE4E5B68393
3695
177805
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Report
en_GB
This report looks at the following areas: The impact of the macroeconomic environment and consumption trends on retail Consumers' visits to offline stores (visit frequency and purpose) Consumers’ favoured types…
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  6. China Trends in Offline Retailing Report 2024

China Trends in Offline Retailing Report 2024

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This report looks at the following areas:

  • The impact of the macroeconomic environment and consumption trends on retail
  • Consumers’ visits to offline stores (visit frequency and purpose)
  • Consumers’ favoured types of offline shopping experiences
  • Key factors affecting consumers’ offline shopping experiences
  • Women in their 30s are the key opportunity demographic
  • Brand strategies around improved experiences and helping consumers with their buying decisions

Constantly elevating and enhancing the sense of experience is key for injecting vitality into offline retail. Women aged 30-39 show stronger interest and stickiness in offline retail spaces, making them a key opportunity group for brands and retailers.

Victoria Li, Principal Analyst, China Insights

Market Definitions

This Report defines offline retail as a retail model where the consumer searches for and purchases goods through offline channels, specifically including the following:

  • Regular supermarkets/hypermarkets, eg Yonghui (永辉), Freshippo (盒马), Walmart
  • Premium supermarkets, ie those that mainly sell premium and imported daily consumer goods, such as Ole’, Blt
  • Paid membership supermarkets/warehouse clubs, where a membership must be purchased to shop, eg Sam’s Club, Costco
  • Convenience stores
  • Standalone brand stores/shopping mall counters
  • Fashion/lifestyle retailers selling multiple brands, eg Miniso (名创优品), KKV
  • Category-specific retail stores, eg beauty retailer Sephora, electronics retailer Suning (苏宁易购)
  • Outlets
  • Discount stores, eg HotMaxx (好特卖), Busy for You (零食很忙)
  • Domestic duty-free stores, eg airport duty-free stores, Hainan duty-free stores
Collapse All
  1. Executive summary

    • Key issues covered in this Report
    • Definition
    • What you need to know
  2. Market overview

    • China’s economy is shifting towards high-quality development
    • Graph 1: GDP and year-on-year growth, 2014-24
    • Growth of per capita disposable income has slowed
    • Graph 2: cumulative growth of per capita disposable income (price-adjusted), 2014-24
    • Cultivating diverse growth drivers is key to unleashing consumption potential
    • Graph 3: year-on-year growth of total retail sales of consumer goods, 2019-24
    • Retail and foodservice consumption growth is weakening
    • Graph 4: month-over-month growth of total retail sales of consumer goods, by consumption category, 2023-24
    • Graph 5: month-over-month growth of total retail sales of consumer goods, by retail format, 2023-2024
  3. Consumer insights

    • Consumer visits to different offline stores
    • Domestic duty-free stores, paid membership supermarkets and premium supermarkets have greater potential to attract customers
    • Graph 6: visits to offline stores, 2024
    • Female consumers show more interest in visiting various offline stores, demonstrating stronger stickiness
    • Graph 7: visited select offline stores in the last six months, by gender, 2024
    • Supermarkets and discount stores have higher conversion rates, with value for money and everyday needs the core drivers of conversion
    • Purpose for visiting offline stores
    • The first-hand experience and leisure remain the key draws of physical stores
    • The first-hand experience and leisure remain the key draws of physical shops
    • Graph 8: purpose for visiting offline stores, 2024
    • Create a relaxing and stress-relieving experience for women in their 30s, and use brand-aligned and topical locations, operating concepts and offline activities to attract Gen Z
    • Graph 9: select reasons for visiting offline stores, by gender and age, 2024
    • Multifunctional shops meet customers’ multifaceted needs for offline experiences using products, events and settings
    • Graph 10: reasons for visiting offline stores, by visits to offline stores, 2024
    • Favoured types of offline shopping experiences
    • Offline experiences that contribute to emotional wellbeing are more appealing
    • Graph 11: favoured types of offline shopping experiences, 2024
    • Women prefer product-related services and personalisation, men prefer high-tech tools and services
    • Graph 12: favoured types of offline shopping experiences, by gender, 2024
    • Create leisurely moments in urban life for Tier 1 city consumers, help lower tier city consumers self-actualise
    • Graph 13: select favoured types of offline shopping experiences, by city tier and gender, 2024
    • Consumers aged 30-39 are the ideal audience for diverse offline experiences
    • Graph 14: select favoured types of offline shopping experiences, by age, 2024
    • Adapting offline retail spaces for older shoppers should also be prioritised
    • Friendly, novel and tangible experiences rule
    • Graph 15: favoured types of offline shopping experiences, by type of store visited in the last six months, 2024
    • Factors affecting the offline shopping experiences
    • There is an increasing focus on the space and design aesthetics of offline stores
    • Graph 16: factors affecting the offline shopping experience, 2024
    • Women have higher requirements for the shopping environment and customer service in particular
    • Graph 17: factors affecting the offline shopping experience, by gender, 2024
    • Opportunity group: women aged 30-39
    • Women in their 30s warrant attention in offline retail
    • Higher interest in visits, easier to attract
    • Graph 18: offline stores visited in the last six months, 2024
    • Graph 19: purpose for visiting offline stores, 2024
    • Enthusiasm for various experiences is strong, while attention to negative factors is also higher
    • Graph 20: factors affecting the offline shopping experience, 2024
    • Graph 21: favoured types of offline shopping experiences, 2024
    • Women aged 30-39 are more willing to self-indulge through services
    • Graph 22: enjoyable routines and sense of ritual – “do it often, and like to do”, 2023
    • Beyond premium sophistication, a warm and healing atmosphere can also provide a strong sense of ritual
    • Enhance economic capabilities to pursue rich, quality lifestyles
    • Graph 23: self-improvement priorities – all respondents, 2023
    • Graph 24: self-improvement priorities – women aged 30-39, 2023
    • Centring around healing, create stress-relieving moments in retail spaces
    • New mums both care for themselves and their families, effortlessly switching between lifestyles
    • A room of her own: store design and curated activities centred around female empowerment
    • China’s middle-aged women: reshaping the narrative
  4. Trends and opportunities

    • Elevated experiences
    • Mintel Trend ‘Flexible Spaces’
    • Leverage the geographical advantage of culture, focus on local cultural narratives
    • Break free from category boundaries and centre around lifestyle
    • Tap into the comfort of childhood and create experiences filled with childlike wonder
    • Mintel Trend ‘Experience Is All’
    • Strengthen pop-up experiences
    • Graph 25: preferred pop-up event features, 2024
    • Leverage the value of pop-up experiences: interests, interactions and limitations
    • Shops can also quickly gain popularity through frequent simple pop-up performances
    • Pop-ups help brands test the waters in specific markets and with certain customer groups
    • In-store experiences focus on helping consumers make efficient decisions
    • Mintel Trend ‘Guiding Choice’
    • Themed shops precisely target the diverse needs of consumers
    • Need-based displays meet consumer demand
  5. What we think

    • Keys to success
  6. Appendix – methodology and abbreviations

    • Methodology

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