Chinese’s Consumption Changing
Chinese consumers are still as confident in the increase of their consumption, but we can see the Chinese’s consumption is experiencing a change. They are more demanding and are seeking more diversified products. With slower economic growth, the Chinese pay more attention to what they buy. With the changing life style of Chinese, they have become more careful in the services sector. How they consume turns to services like relaxing in a spa, entertainment, travel, movies.
We see that the Chinese are much more often in cinema, they are willing to spend for entertainment, go see the latest film at the exit. As the consumption of food and beverage is stable. The Chinese tend to buy products of best quality despite a higher price. They appreciate the products of foreign brands.
- Loyalty to brands
Much of Chinese consumers tend to remain loyal to a small number of brands. The number of consumers willing to try a new brand is declining. For example on clothing, the number of people willing to try a new brand outside of their brands list was reduced to about 40% in 2011 to 30% in 2015. Moreover, because of food scandals in China, Chinese consumers are more and more attention to food safety. Today 72% of consumers are concerned that the food they eat may be harmful to their health. More and more consumers looking to maintain a healthy diet.
With the increase of the average wage in China, the Chinese market now have a higher standard of living. They adopt a healthier lifestyle by making more attention to the food, they do more sport. Brands like Shweppes took advantage of this trend by creating a good drink for health: drink + C which contains vitamin C. In addition, organic products are increasingly in demand by Chinese consumers. For example Olé has become one of the most recognized supermarket to sell organic products and imported products.