2020
0
Consumer Spending Sentiment – Q2 – China – August 2020
2020-10-06T15:34:46+01:00
OX990408
3695
125586
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Report
en_GB
“Driving domestic consumption will be key to China’s economic recovery in the second half of 2020. Mintel’s research shows consumer finances are not falling apart even though two thirds of…

Consumer Spending Sentiment – Q2 – China – August 2020

£ 3,695 (Excl.Tax)

Report Summary

“Driving domestic consumption will be key to China’s economic recovery in the second half of 2020. Mintel’s research shows consumer finances are not falling apart even though two thirds of people have experienced some loss of income after the outbreak. The traditional mindset of ‘spend within their means’ has proved to be ever more relevant to Chinese now.
Opportunities still exist for premium brands, especially in essential spendings. Rather than trading down, consumers are more likely to cut discretionary spending and focus on the core to ensure their quality of living.”
– Ruyi Xu, Head of Reports, North Asia

Key issues covered in this Report

  • How well has China’s economy been performing since the outbreak?
  • How is consumer spending confidence changing since the outbreak and what has changed since Mintel’s Q1 findings?
  • Which consumer segments are being more affected and what is the difference in their financial priorities?
  • What market opportunities and business implications are there for companies to learn from?

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Report scope
        • Executive Summary

            • The economy staged a comeback in Q2
              • Figure 1: Summary of key economic indicators, China, January-July 2020
            • Mintel’s predictions about recovery have been close to market reality
              • Figure 2: Monthly growth of total retail sales of consumer goods and foodservice in China, March 2018-July 2020
              • Figure 3: Growth rate of retail sales, by key sector, 2019-July 2020
            • Consumers are adapting spending to changes in income
              • Figure 4: Changes in source of income after COVID-19, May 2020
              • Figure 5: Current financial situation, 2016-20
            • Confident about the long term
              • Figure 6: Confidence in improving future financial situation, 2016-20
            • Financial priorities haven’t changed that much
              • Figure 7: Financial priorities in the next 12 months, % very important, 2019-20
            • Focusing on the core rather than spending on everything but cheaper products
              • Figure 8: Ways to improve financial situation during and after the outbreak, May 2020
          • COVID-19 China Context

              • Figure 9: Status of returning to work and restrictions in neighbourhood access, March-August 2020
          • State of the Economy

            • GDP returned to growth in Q2 after Q1’s contraction
              • Figure 10: Quarterly growth of GDP in China, Q1 2000-Q2 2020
            • PMI shows good four months in expansion
              • Figure 11: Monthly Purchasing Managers’ Index, China, January 2018-July 2020
            • Imports and exports value started to show early signs of recovery
              • Figure 12: Growth in total value of imports and exports, China, January 2007-June 2020
            • Unemployment easing, but pressure is still on under-25s
              • Figure 13: Monthly surveyed urban unemployment rate, China, January 2018-July 2020
            • Seasonal factors have driven up food prices but CPI is overall under control
              • Figure 14: Consumer Price Index, China, January 2000-July 2020
            • Decline in real income may drive importance of precautionary saving
              • Figure 15: Growth of per capita disposable income, China, 2019-20 (1H)
            • Retail spending on track to recovery but speed is slowing down
              • Figure 16: Monthly growth of total retail sales of consumer goods and foodservice in China, March 2018-July 2020
            • How well recovery has taken place against Mintel predictions so far
              • What Mintel predicted in Q1
                • What has happened so far
                    • Figure 17: Growth rate of retail sales, by key sector, 2019-July 2020
                  • Short, medium and long term of consumer spending
                    • Figure 18: Summary of overall consumer spending in the short, medium and long term, April 2020
                • Impact of COVID-19 on Household Income

                  • Two thirds of respondents indicate reduced income
                    • Figure 19: Changes in source of income after COVID-19, May 2020
                • Current Financial Situation

                  • Consumers are adapting spending to change in income status
                    • Figure 20: Current financial situation, 2016-20
                  • Civil servants and foreign enterprise employees have more potential to spend
                    • Figure 21: Current financial situation, % saying “I can save considerable amount of money every month”, by demographic, 2019 and 2020
                • Confidence in Future Finances

                  • Consumers are more confident about the long term
                    • Pessimism has been continuously declining
                      • Figure 22: Confidence in improving future financial situation, 2016-20
                  • Financial Priorities

                    • Nothing has fundamentally changed
                      • Figure 23: Financial priorities in the next 12 months, % very important, 2019-20
                    • Under-40s have more on their shoulders but are not giving up self-indulgence
                      • Figure 24: Financial priorities in the next 12 months, % very important, by age, May 2020
                  • Factors Impacting Spending

                    • Employment and investment performance matter more after COVID-19
                      • Figure 25: Spending influencing factors, 2019 and 2020
                  • Ways to Improve Finances

                    • Spending smartly rather than trading down
                      • Saturnbird’s success shows how brands could do
                        • Figure 26: Ways to improve financial situation during and after the outbreak, May 2020
                    • Appendix – Methodology and Abbreviations

                      • Methodology
                        • Abbreviations

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