2020
0
Consumer Spending Sentiment – Q4 – China – December 2020
2021-02-19T03:02:36+00:00
OX990866
3695
134627
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Report
en_GB
“Significant economic indicators have rebounded thanks to the effective economic stimulus policies of the Chinese government. Guarded optimism is the main theme, as consumers still prioritize saving. However, their financial…

Consumer Spending Sentiment – Q4 – China – December 2020

£ 3,695 (Excl.Tax)

Report Summary

“Significant economic indicators have rebounded thanks to the effective economic stimulus policies of the Chinese government. Guarded optimism is the main theme, as consumers still prioritize saving. However, their financial confidence has been significantly boosted. Many of them are happy to consume for self-indulgence to achieve a high quality lifestyle and for comfort spending. The rise of domestic duty-free stores and online channels provides new solutions for luxury brands after the outbreak. Industries like online healthcare and e-learning are expected to snowball in 2021.”
– Blair Zhang, Research Analyst

Covered in this report

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

Table of Contents

  1. Overview

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

          • Impact of COVID-19 on consumer spending
            • Figure 1: Short, medium and long term impact of COVID-19 on consumer spending sentiment, December 2020
          • Strong recovery is observed
            • Figure 2: Summary of key economic indicators, China, January-December 2020
            • Figure 3: Monthly growth of total retail sales of consumer goods in China, March 2018-December 2020
            • Figure 4: Growth of total retail, by key sectors, 2019-December 2020
          • Impact on consumer spending
            • Willing to spend while saving
              • Figure 5: Current financial situation, 2016-2020
            • Promising growth in earnings as income structure evolves
              • Figure 6: Changes in source of income after COVID-19, May 2020-October 2020
            • Belief in future with temporary difficulties
              • Figure 7: Confidence in improving future financial situation, 2016- 2020
            • Saving for the future comes first with revenge spending following
              • Figure 8: Financial priorities in the next 12 months, % very important, December 2019-October 2020
            • Cautious consumption pattern with various sales channels rising
              • Figure 9: Luxury spending in the last 3 months, October 2020
            • Changing attitudes toward luxury spending
              • Figure 10: Attitudes toward purchasing luxury goods in domestic duty-free stores before/after safe international travelling, October 2020
              • Figure 11: Luxury spending preference, October 2020
              • Figure 12: Attitudes toward payment methods for luxury goods, October 2020
          • COVID-19 China Context

            • This update was prepared on 24 January 2020
              • Figure 13: Worry about being exposed to COVID-19, China, February 2020-January 2021
          • State of the Economy

            • China’s economy sustains steady recovery
              • Figure 14: Quarterly growth of GDP in China, Q1 2000-Q4 2020
            • PMI reaches the highest point for the year
              • Figure 15: Monthly purchasing managers’ index, China, January 2018-December 2020
            • Import-export trade maintains steady growth
              • Figure 16: Growth in the total value of imports and exports, China, January 2007-December 2020
            • Unemployment rate fell back to the level before COVID-19
              • Figure 17: Monthly surveyed urban unemployment rate, China, January 2018-December 2020
            • CPI fluctuates but forecast still optimistic
              • Figure 18: Consumer price index, China, January 2000-December 2020
            • Increase in disposable income drives consumer spending
              • Figure 19: Growth of per capita disposable income (price-adjusted), China, Q1 2019-Q4 2020
            • Retail sales steadily rise in Q4
              • Figure 20: Monthly growth of total retail sales of consumer goods in China, March 2018-December 2020
            • What happened in Q4
              • Discretionary spending drives the growth:
                • ‘Double 11’ pushed strong growth in online shopping:
                  • The electrical car market is promising:
                    • Signature products’ launch promotes communication appliance growth:
                      • What happened in 2020 overall?
                        • Figure 21: Growth rate of retail sales, by key sectors, China, 2019-December 2020
                      • Mintel’s predictions for 2021
                        • Macro market
                          • Consumers
                            • Industries
                            • Current Financial Situation

                              • Willing to spend while saving
                                • Figure 22: Current financial situation, 2016-2020
                              • Tier one cities tend to drive consumption
                                • Figure 23: Current financial situation, by city tier, October 2020
                              • Prosperity of private economy
                                • Figure 24: Current financial situation, % saying “I can save a considerable amount of money every month” and “I can save some money at the end of the month, but not much”, by company type, December 2019-October 2020
                            • Changes in Income

                              • Promising growth in main sources of income
                                • Figure 25: Changes in source of income after COVID-19, May 2020-October 2020
                              • Low tier cities recover first in terms of salary income
                                • Figure 26: Changes in salary income after COVID-19, by city tier, May 2020-October 2020
                              • Evolving income structure due to COVID-19
                                • Figure 27: Changes in part-time jobs income after COVID-19, by generation, October 2020
                            • Confidence in Future Financial Situation

                              • Belief in future with temporary difficulties
                                • Figure 28: Confidence in improving future financial situation, 2016- 2020
                              • Guarded optimism
                                • Figure 29: Confidence in future financial situation by current financial situation, October 2020
                              • Family is a pillar of confidence
                                • Figure 30: Confidence in improving future financial situation, by marital status, December 2019-October 2020
                            • Financial Priorities

                              • Saving for the future still comes first
                                • Figure 31: Financial priorities in the next 12 months, % very important, December 2019-October 2020
                              • Revenge spending helps boost comfort spending sentiment
                                • Figure 32: Financial priorities in the next 12 months, % very important, by employment type, October 2020
                              • Post-90s live for today while post-70s indulge more temperately
                                • Figure 33: Financial priorities in the next 12 months, % not important, by generation, October 2020
                            • Luxury Spending

                              • Over half still maintain a cautious consumption pattern
                                • Figure 34: Luxury spending in the last 3 months, October 2020
                              • ‘Her economy’ drives luxury spending
                                • Figure 35: Luxury spending in the last 3 months, by gender, October 2020
                              • Higher confidence leads to stronger purchasing power in luxury
                                • Figure 36: Confidence in future by luxury spending in the last 3 months, October 2020
                            • Attitudes toward Luxury Spending

                              • Where to buy – domestic duty-free stores are new destinations
                                • Figure 37: Attitudes toward purchasing luxury goods in domestic duty-free stores before/after safe international travelling, by marital status, October 2020
                              • What to buy – foreign brands are still the first choice
                                • Figure 38: Luxury spending preference, by monthly personal income, October 2020
                                • Figure 39: Luxury spending preference, by city tier, October 2020
                                • Figure 40: Attitudes towards spending on luxury services and products, by monthly personal income and city tier, October 2020
                              • How to buy – one-time payments with a budget
                                • Figure 41: Attitudes toward luxury spending, by generations, October 2020
                            • Appendix – Methodology and Abbreviations

                              • Methodology
                                • Abbreviations

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