Table of Contents
Executive Summary
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- Impact of COVID-19 on consumer spending
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- Figure 1: Short, medium and long term impact of COVID-19 on consumer spending sentiment, December 2020
- Strong recovery is observed
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- 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
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- Figure 5: Current financial situation, 2016-2020
- Promising growth in earnings as income structure evolves
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- Figure 6: Changes in source of income after COVID-19, May 2020-October 2020
- Belief in future with temporary difficulties
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- Figure 7: Confidence in improving future financial situation, 2016- 2020
- Saving for the future comes first with revenge spending following
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- Figure 8: Financial priorities in the next 12 months, % very important, December 2019-October 2020
- Cautious consumption pattern with various sales channels rising
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- Figure 9: Luxury spending in the last 3 months, October 2020
- Changing attitudes toward luxury spending
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- Figure 10: Attitudes toward purchasing luxury goods in domestic duty-free stores before/after safe international travelling, October 2020
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- Figure 11: Luxury spending preference, October 2020
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- Figure 12: Attitudes toward payment methods for luxury goods, October 2020
COVID-19 China Context
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- This update was prepared on 24 January 2020
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- Figure 13: Worry about being exposed to COVID-19, China, February 2020-January 2021
State of the Economy
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- China’s economy sustains steady recovery
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- Figure 14: Quarterly growth of GDP in China, Q1 2000-Q4 2020
- PMI reaches the highest point for the year
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- Figure 15: Monthly purchasing managers’ index, China, January 2018-December 2020
- Import-export trade maintains steady growth
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- 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
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- Figure 17: Monthly surveyed urban unemployment rate, China, January 2018-December 2020
- CPI fluctuates but forecast still optimistic
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- Figure 18: Consumer price index, China, January 2000-December 2020
- Increase in disposable income drives consumer spending
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- Figure 19: Growth of per capita disposable income (price-adjusted), China, Q1 2019-Q4 2020
- Retail sales steadily rise in Q4
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- 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?
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- 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
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- Willing to spend while saving
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- Figure 22: Current financial situation, 2016-2020
- Tier one cities tend to drive consumption
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- Figure 23: Current financial situation, by city tier, October 2020
- Prosperity of private economy
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- 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
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- Promising growth in main sources of income
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- Figure 25: Changes in source of income after COVID-19, May 2020-October 2020
- Low tier cities recover first in terms of salary income
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- Figure 26: Changes in salary income after COVID-19, by city tier, May 2020-October 2020
- Evolving income structure due to COVID-19
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- Figure 27: Changes in part-time jobs income after COVID-19, by generation, October 2020
Confidence in Future Financial Situation
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- Belief in future with temporary difficulties
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- Figure 28: Confidence in improving future financial situation, 2016- 2020
- Guarded optimism
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- Figure 29: Confidence in future financial situation by current financial situation, October 2020
- Family is a pillar of confidence
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- Figure 30: Confidence in improving future financial situation, by marital status, December 2019-October 2020
Financial Priorities
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- Saving for the future still comes first
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- Figure 31: Financial priorities in the next 12 months, % very important, December 2019-October 2020
- Revenge spending helps boost comfort spending sentiment
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- 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
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- Figure 33: Financial priorities in the next 12 months, % not important, by generation, October 2020
Luxury Spending
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- Over half still maintain a cautious consumption pattern
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- Figure 34: Luxury spending in the last 3 months, October 2020
- ‘Her economy’ drives luxury spending
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- Figure 35: Luxury spending in the last 3 months, by gender, October 2020
- Higher confidence leads to stronger purchasing power in luxury
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- Figure 36: Confidence in future by luxury spending in the last 3 months, October 2020
Attitudes toward Luxury Spending
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- Where to buy – domestic duty-free stores are new destinations
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- 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
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- Figure 38: Luxury spending preference, by monthly personal income, October 2020
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- Figure 39: Luxury spending preference, by city tier, October 2020
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- 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
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- Figure 41: Attitudes toward luxury spending, by generations, October 2020
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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