Table of Contents
Executive Summary
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- The consumer
- Despite the economic slowdown, Chinese consumers have maintained confidence
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- Figure 1: Confidence in improving future finances, December 2014
- Chinese consumers are saving more for long-term uncertainty
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- Figure 2: Financial priorities in the next 12 months, December 2014
- Spending within limits is the norm in China
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- Figure 3: Spending habits – expenditure versus income, December 2014
- Holidays/travel most likely to be cut on a tight budget
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- Figure 4: Expenditure mostly likely to be cut when on a tight budget, December 2014
- Older women are more likely to consider quality over quantity in clothing and personal care
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- Figure 5: Ways of controlling expenditure, December 2014
- Chinese consumers are still easily enticed by discounts and shopping environments
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- Figure 6: Attitudes towards financial management, December 2014
- Key issues
- People are still confident about future finances, but getting more wary
- 30 to 39-year-olds are a critical group for businesses to target
- More opportunities for business to offer higher quality products and services
- International operators can entice Chinese consumers via online shopping festivals
- What we think
Issues and Insights
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- People are still confident about future finances, but are becoming wary
- The facts
- The implications
- 30 to 39-year-olds are a crucial target for businesses
- The facts
- The implications
- More opportunities for business to offer higher quality products and services
- The facts
- The implications
- Opportunities remain for international operators to entice Chinese consumers via online shopping festivals
- The facts
- The implications
Trend Applications
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- Help Me Help Myself
- Let’s Make a Deal
- Immaterial World
Macroeconomic Background
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- Economic growth is expected to slow further
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- Figure 7: GDP growth rate in China, 2004-14
- Unemployment rate remains constant
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- Figure 8: Urban unemployment rate in China, 2004-14
- Average wage grows at double digits
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- Figure 9: Average wage of urban employees in China, 2004-13
- CPI has fallen to five-year low
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- Figure 10: Consumer price index, January 2012 - December 2014
- More money in the market to stimulate investment
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- Figure 11: Money supply growth in China, 2013-14
The Consumer – Confidence in Improving Future Finances
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- Key points
- Despite the economic slowdown, consumers are still confident in improving future finances
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- Figure 12: Confidence in improving future finances, December 2014
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- Figure 13: Confidence in improving future finances, “Very confident”, by gender and age group, December 2014
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- Figure 14: Confidence in improving future finances, by marital status and by children in household, December 2014
- Better education still provides more confidence to consumers
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- Figure 15: Confidence in improving future finances, by education level, December 2014
- Overall consumer confidence remains the same
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- Figure 16: Confidence in improving future finances, comparison of December 2014 and December 2013
- Older male consumers are becoming more confident
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- Figure 17: Confidence in improving future finances, “Very confident”, by gender and age, 2013 versus 2014
The Consumer – Financial Priorities in the Next Year
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- Key points
- Chinese consumers still save amid uncertainty
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- Figure 18: Financial priorities in the next 12 months, December 2014
- People are saving more
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- Figure 19: Financial priorities in the next 12 months, mean value*, 2013 versus 2014
- Mortgages regain in importance
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- Figure 20: Selected financial priorities in the next 12 months, “Paying off my mortgage/saving for buying property”, 2013 versus 2014
- Spending money on self-indulgence is the least important task
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- Figure 21: Importance of financial tasks, “Spending money on self-indulgence (eg eating at premium restaurant, holidays, luxury products)”, by age, December 2014
- City differences
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- Figure 22: Selected finance priorities, “Important”, by tier and by city, December 2014
The Consumer – Spending Habits – Expenditure vs Income
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- Key points
- Spending within means is still the norm
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- Figure 23: Spending habits – expenditure versus income, December 2014
- Men are more likely to be financially self-disciplined
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- Figure 24: Spending habits – expenditure versus income, by gender, December 2014
- Consumers from tier one cities are more cautious than tier two/three cities
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- Figure 25: Spending habits – expenditure versus income, “I can save a fixed amount of money at the end of the month”, by city, December 2014
The Consumer – Expenditure to Cut When on a Tight Budget
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- Key points
- Travelling is the most elastic expenditure
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- Figure 26: Expenditure mostly likely to be cut when on a tight budget, December 2014
- Household-related expenditure has space for upgrading
- Out-of-home expenditure also bears the brunt
The Consumer – Ways of Controlling Expenditure
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- Key points
- People downgrade necessary expenditure
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- Figure 27: Way of controlling expenditure, decrease frequency vs downgrade, December 2014
- Long purchase cycle of household products gives more room for manufactures to adjust their strategy
- Consumers prefer free solutions to keep healthy
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- Figure 28: Way of controlling expenditure, “Totally cut the spending in this area”, December 2014
- Older women are less likely to downgrade clothing and cosmetics
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- Figure 29: Way of controlling expenditure, Appearance and personal care*, by gender and age, December 2014
The Consumer – Attitudes towards Financial Management
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- Key points
- Higher earners struggle to resist the temptation of buying in a shopping atmosphere
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- Figure 30: Attitudes towards financial management, “I can’t help buying when there is a shopping atmosphere”, by monthly household income, December 2014
- Younger women are more likely to be enticed
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- Figure 31: Attitudes towards financial management, December 2014
- Good financial management contributes to financial confidence
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- Figure 32: Selected financial Management Behaviours, by confidence level in future finances, December 2014
- Consumers in their 30s need instalment payments most
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- Figure 33: Attitudes towards financial management, by age, December 2014
- The influence of family cannot be overlooked in financial management
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- Figure 34: Attitudes towards financial management, December 2014
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