Our analysis of 2017 Chinese consumption trends arrives at its final stop and focuses on the changing priorities of consumers. New attention from the public to CO2 emissions and food safety has probably pushed customers to pay more attention to their own consumption habits. Furthermore, ever-stressing life is surging the need for ways to escape and technologies that enhance quality of life. High Internet penetration and usage translated in abundant information on brands and highly brand conscious consumers. But not only: thanks to the Internet, service supply and demand have risen dramatically and it is on the way to become a major source of wealth.
Staying healthy, eating fresh food and regularly exercise are the latest trends in China. With the government focusing a lot of efforts in reverting the environmental damages made during the rocket expansion, seems natural that people have turned their attention to their health as well. A lot of it is made possible thanks to O2O services that make e.g. organic food available even if absent on the shelves of local stores. Moreover, exercise and wellness reached an unprecedented importance in the lives of Chinese as the average level of education rises and information abounds on the Internet.
In a study conducted by McKinsey, emerged that Chinese millennials are among the most brand conscious in the world. On average, they know 20 skin-care brands (against 14 in US) and half of the youngsters interviewed were advocating for brands, compared with only 34% of US consumer of similar age. They have a greater emotional connection with brands and value as top priority the ability of a brand to fit their personality. Chinese consumers are longtime fans of Western brand, but are increasingly more sensitive to the local offer as well. They tend to pay more attention to consumer electronics, apparel and skin-care products.
SERVITIZATION AS THE ECONOMIC ENGINE
As upper-middle class expands, so does spending on services – 11% YoY against 8% YoY for goods, to be exact. The wealthier spend particularly on education, culture and entertainment. Development of digital channels will further push the servitization of the economy, just as in the West. Emerging demographic, technological and social forces are redefining Chinese consumption trends offering both new opportunities and challenges for firms that approach this environment. Even if the economy has slowed down a bit, China must remain a priority as one of the most important markets. Yet Chinese consumption trends change by the day and strategies must keep up and adapt constantly. It is a difficult task, especially for Western brands who are used to interact with completely different consumers. Digital Retex is there to support business to approach China leveraging the most effective channel, namely WeChat and adv campaign on the platform. Hence, it reaches two major objectives: increase brand awareness and maximize follower acquisition. With Digital Retex and WeChat, the West goes to China.