It is exciting news that Chinese consumers’ financial confidence has continuously rebounded. Long term confidence has almost returned to the strong levels of pre-COVID-19, while short term confidence is also catching up.
Throughout 2020, the Chinese economy progressively recovered to growth, led by manufacturing industries and exports and then followed by total consumer expenditure. When it comes to the consumer market, increasing consumer demand for health protection (both physical and emotional) and future financial security drove spending in sectors such as in-home food and drinks, healthcare and personal finance while at the same time resulted in lowered spending priorities in discretionary sectors such as leisure, holidays and eating out.
Although the overall financial outlook is optimistic and the desire for trading up to higher living standards is unstoppable, given there are still uncertainties about the post-pandemic policies and economic landscape from a global perspective, people’s overall spending sentiment will remain more cautious than pre-outbreak throughout 2021.
The important factors contributing to the ‘value’ equation during the purchase decision-making process have also changed post-COVID-19, with more attention on ethics than economics. Consumers are looking for transparency, sustainability and respect from brands besides basic features such as quality and convenience.
Key issues covered in this Report
This Report is an annual summary of the nation’s economic development status, change of population structure and trends in consumers’ lifestyles and attitudes.
It also gives an overview of key stories of Chinese consumer spending in the following market sectors:
In-home food
Non-alcoholic drinks
Alcoholic drinks
Foodservice
Beauty and personal care products
Pharmaceutical products
Clothing and accessories
Home products
Household care products
Technology and communication
Leisure and entertainment
Transportation
Holidays
Housing and personal finances
Miscellaneous
Demographic classifications
Mintel divides consumers into three groups based on their monthly household income and monthly personal income. The table below shows the definitions of each consumer group.
| MHI | Tier one cities | Tier two and lower cities |
| Low household income | RMB6,000-9,999 | RMB5,000-8,999 |
| Mid household income | RMB10,000-17,999 | RMB9,000-15,999 |
| High household income | RMB18,000 and above | RMB16,000 and above |
| MPI | Tier one cities | Tier two and lower cities |
| Low personal income | RMB5,999 and below | RMB4,999 and below |
| Mid personal income | RMB6,000-9,999 | RMB5,000-8,999 |
| High personal income | RMB10,000 and above | RMB9,000 and above |
