2023
0
China Consumer Spending Sentiment – 1H Market Report 2023
2023-08-01T04:03:12+01:00
OX1154651
3695
165402
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Report
en_GB
“China’s economic development is recovering after the relaxation of COVID-19, but is still facing pressure and challenges. Consumers’ financial situation remained stable, and consumer confidence also picked up. The cautious…

China Consumer Spending Sentiment – 1H Market Report 2023

£ 3,695 (Excl.Tax)

Report Summary

“China’s economic development is recovering after the relaxation of COVID-19, but is still facing pressure and challenges. Consumers’ financial situation remained stable, and consumer confidence also picked up. The cautious consumption mentality will still be maintained in 2023. Revenge spending will be concentrated in sectors that can bring instant happiness with small expenditures, such as tourism, offline leisure and catering categories.”
– Blair Zhang, Senior Research Analyst

This is a half-yearly Report that examines China’s macroeconomic status, as well as consumers’ sentimental attitudes towards spending. It looks into:

  • China’s economic performance.
  • Changes in consumer spending confidence.
  • Consumers’ financial status and priorities.
  • Consumers’ discretionary spending behaviours.
  • Consumers’ spending attitudes towards the balance between time and money, as well as immediate and delayed gratification.

Table of Contents

  1. Overview

    • What you need to know
      • Covered in this Report
      • Executive Summary

          • China’s economy recovers with pressure
            • Figure 1: Summary of key economic indicators, China, 2020-23
            • Figure 2: Year-on-year growth rate of consumer retail sales, by product/service type, China, 2022-23
          • Consumer spending sentiment
            • Despite overall stability, financial strains are continuing for the vulnerable groups
              • Figure 3: Current financial situation, 2016-23
            • The trend of ‘being a slashie’ expands to elderly people
              • Figure 4: The proportion of respondents who own the income, 2019-23
            • Consumer confidence starts to fluctuate after the initial recovery
              • Figure 5: Confidence in improving future financial situation, 2019-23
            • Saving for children’s long-term plans is at the top of financial priorities, with more focus on low-risk financial products and self-indulgence
              • Figure 6: Financial priorities in the next 12 months, 2023
            • Discretionary spending surged in offline leisure activities
              • Figure 7: Behaviours of discretionary spending, 2023
            • More personal time and space and immediate gratification are valued in the post-pandemic world
              • Figure 8: Attitudes towards spending, 2023
          • State of the Economy

            • The economy recovered in the first half of 2023, but not as vigorously as expected
              • Figure 9: Quarterly growth of GDP in China, Q1 2000-Q2 2023
            • PMI declined in Q2 after initial recovery
              • Figure 10: Monthly Purchasing Managers’ Index, China, 2018-23
            • Import-export are under pressure while seeing new opportunities
              • Figure 11: Year-on-year growth in the total value of imports and exports, China, 2007-23
              • Figure 12: Year-on-year growth in the total value of imports and exports, China, by month, 2023
            • Employment challenges are becoming more severe for the youth
              • Figure 13: Monthly surveyed urban unemployment rate, China, 2018-23
              • Figure 14: Monthly surveyed unemployment rate of urban youth aged 16-24, 2022-23
            • CPI is running low due to insufficient demand
              • Figure 15: Consumer Price Index, China, 2000-23
            • Disposable income grew steadily
              • Figure 16: Growth of per capita disposable income (price-adjusted), China, 2019-23
            • Retail sales recovery is slowing down in Q2 2023
              • Figure 17: Year-on-year growth of total retail sales of consumer goods in China, 2018-23
              • Figure 18: Year-on-year growth rate of consumer retail sales, by goods/service type, China, 2022-23
              • Figure 19: Growth rate of retail sales, by key sectors, 2019-23
          • Current Financial Situation

            • Despite overall stability, financial strains are continuing for the vulnerable groups
              • Figure 20: Current financial situation, 2016-23
            • High and middle income groups have relatively stable financial situation while low income groups are in a more intense situation
              • Figure 21: Current financial situation, by monthly personal income, 2019-23
            • Consumers with difficult financial circumstances increased in lower tier cities
              • Figure 22: Current financial situation, by city tier, 2019-23
          • Changes in Source of Income

            • Income from various sources steadily grows, providing a solid foundation for consumption recovery
              • Figure 23: The proportion of respondents who own the income, 2019-23
              • Figure 24: The proportion of respondents who increased their income, 2019-23
            • The trend of ‘being a slashie’ expands to elderly people
              • Figure 25: The percentage of respondents who own online part-time job income, by age, 2022-23
              • Figure 26: The percentage of respondents who own offline part-time job income, by age, 2022-23
          • Confidence in Future

            • Consumer confidence starts to fluctuate after the initial recovery
              • Figure 27: Confidence in improving future financial situation, 2019-23
            • Tier 1 cities will be the first to recover in consumption
              • Figure 28: Confidence in improving future financial situation – very confident and somewhat confident, by city tier, 2019-23
            • Recovery is observed in all income brackets
              • Figure 29: Confidence in improving future financial situation – very confident and somewhat confident, by monthly personal income, 2019-23
          • Financial Priorities

            • Children’s education and healthcare are still the top priorities
              • Figure 30: Financial priorities in the next 12 months, 2023
              • Figure 31: Financial priorities in the next 12 months ranked as ‘very important’, 2019-23
            • Elderly care starts to gain attention among seniors themselves
              • Figure 32: Financial priorities in the next 12 months ranked as ‘very important’ – saving for my older years, by age, 2021-23
            • Enthusiasm in venture investment and insurance both cooled down
              • Figure 33: Financial priorities in the next 12 months ranked as ‘very important’, 2021-23
              • Figure 34: Financial priorities in the next 12 months ranked as ‘very important’ – spending on insurance, 2022 and 2023
            • Consumers aged 40-59 will drive the recovery of big-ticket and self-indulgence spending
              • Figure 35: Financial priorities in the next 12 months ranked as ‘very important’ – paying off loan or saving for big-ticket purchases, by age, 2021-23
              • Figure 36: Financial priorities in the next 12 months ranked as ‘very important’ – spending on self-indulgence, by age, 2021-23
          • Discretionary Spending

            • Offline leisure activities surged after the relaxation of COVID-19
              • Figure 37: Behaviours of discretionary spending, 2021 and 2023
            • Anti-cut-off (反断舍离) is rising among young people
              • Figure 38: Behaviours of discretionary spending – cut off and abandoned unnecessary stuff, by age, 2021 and 2023
            • Home furnishing may target multi-generation families
              • Figure 39: Behaviours of discretionary spending – purchased home products, by living situation, 2023
          • Attitudes towards Spending

            • Respecting personal time and space may help brands win consumers aged 25-39
              • Figure 40: Attitudes towards the balance of work and personal life, by age, 2023
              • Figure 41: Attitudes towards the balance of spending time and money, by age, 2023
            • Catch females’ and young consumers’ attention with instant happiness
              • Figure 42: Attitudes towards the balance of delaying and immediate gratification, by gender and age, 2023
            • Consumers in tier 3 or lower cities are highly active in pursuing fresh experiences
              • Figure 43: Attitudes towards trying more new brands, by city tier, 2023
              • Figure 44: Attitudes towards pursuing a fashionable and trendy lifestyle, by city tier, 2023
              • Figure 45: Attitudes towards new product launches, by city tier, 2023
          • Appendix – Methodology and Abbreviations

            • Methodology
              • Abbreviations

              About the report

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