Table of Contents
Overview
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- What you need to know
- Covered in this Report
- Definition
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- Figure 1: Definition of different monthly household income groups, by city tier, November 2016
Executive Summary
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- Macroeconomic background
- A ‘new normal’ phase of economic development
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- Figure 2: GDP per capita and growth rate in China, 2010-16
- Heading towards a consumption-driven economy
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- Figure 3: Average annual disposable income and growth rates of urban and rural residents, 2011-16
- Living costs differ in different tier cities
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- Figure 4: Consumer Price Index, January 2013-December 2016
- The consumer
- The re-bound in spending confidence
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- Figure 5: Confidence in improving future financial situation, 2013-16
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- Figure 6: Current financial status, by monthly household income, November 2016
- Concerns about health are the most influential
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- Figure 7: Confidence influencing factors, claim rate on ‘have a great impact’, November 2016
- Spending more on discretionary sectors
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- Figure 8: Claim rate of ‘spend more’ on selected sectors, 2013, 2015 and 2016
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- Figure 9: Claim rate of ‘spend more’ on selected categories, by company type, November 2016
- Using different promotions to target specific consumer groups
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- Figure 10: The most interested promotion method, by gender, November 2016
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- Figure 11: Preference for selected promotion method, by household size, November 2016
- Going for the best on offer and buy when in need
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- Figure 12: Spending habits of Chinese consumers, November 2016
- What we think
Issues and Insights
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- What is driving the re-bound in spending confidence?
- The facts
- The implications
- What brands can do facing more rational consumers?
- The facts
- The implications
- How exactly do young people spend their money?
- The facts
- The implications
Macroeconomic Background
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- What you need to know
- Disposable income rises faster than GDP growth
- Steering towards a consumption-driven economy
- Complex changes in living costs
Market Factors
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- Economic growth is expected to remain below 7% per year
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- Figure 13: GDP growth rate in China, 2014 Q1 – 2016 Q4
- Figure 14: GDP per capita and growth rate in China, 2010-16
- The continuously reshaping industry structure
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- Figure 15: Composition of GDP, by the three strata of industry, 2010-16
- Employment remains robust
- Disposable income rises faster than GDP growth
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- Figure 16: Average annual disposable income and growth rates of urban and rural residents, 2011-16
- Even faster expanding spending power of rural residents
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- Figure 17: The proportion of spending to disposable income of urban and rural residents, 2011 – 16
- Milder increases in living costs
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- Figure 18: Consumer Price Index, January 2013-December 2016
- Another heated year for the property market
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- Figure 19: Volume and the average price of traded residential properties, 2011-16
- Slowing down in migration
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- Figure 20: Migrant population, 2011-16
The Consumer – What You Need to Know
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- Re-bound in spending confidence
- Healthy status as the most influential factor
- Plans to spend more, especially on discretionary sectors
- Promotion method preferences vary between consumer groups
- More divided consumption habits
Current Financial Status
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- While saving is a norm, not many can save a big amount
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- Figure 21: Current financial status, December 2013 versus November 2016
- 25-39-years-olds have the healthiest financial status
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- Figure 22: Current financial status, agreement on ‘I can save a considerable amount of money at the end of the month’, by gender and age, November 2016
- Saving accumulates with income increase, but not always in a linear way
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- Figure 23: Current financial status, by monthly household income, November 2016
Confidence in Improving Future Finances
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- Highest since 2013
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- Figure 24: Confidence in improving future financial situation, 2013-2016
- Millennials are driving up the overall confidence
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- Figure 25: Confidence in improving future financial situation, claim rate of ‘very confident’, by age group, 2014-16
- Confident lower tier city residents
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- Figure 26: Confidence in improving future financial situation, claim rate of ‘very confident’, by city tier, 2013-2016
- Affluent consumers’ confidence remains consistently strong
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- Figure 27: Confidence in improving future financial situation, claim rate of ‘very confident’, by monthly household income, 2013-16
- Some making-ends-meet people are also confident spenders
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- Figure 28: Confidence in improving future financial situation, by current financial situation, November 2016
Confidence Influencing Factors
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- Health becomes the top influencing factor
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- Figure 29: Confidence influencing factors, claim rate on ‘have a great impact’, November 2016
- Sensitive 20-24-year-olds
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- Figure 30: Selected confidence influencing factors, claim rate of ‘have a great impact’, by age group, November 2016
- Lower mention of investment products
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- Figure 31: Top three confidence influencing factors, 2016 survey compares 2015 and 2013’s
- 36% consumers say they are influenced by others
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- Figure 32: Selected confidence influencing factors, claim rates of ‘have a great impact’, by monthly household income, November 2016
- Employment situation is more influential on mums
Spending Priorities in the Next 12 Months
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- Less saving, more experiential spending
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- Figure 33: Spending changes, claim rate of ‘spend more’, 2013, 2015 and 2016
- Mums of more than one kid are spending more on beauty treatment
- Consumers with higher educational levels exercise more
- 20-24-year-old females plan to travel more
- Spending patterns relate with types of organisations consumers work at
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- Figure 34: Claim rate of ‘spend more’ on selected categories, by company type, November 2016
Effective Promotions
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- Direct and with fun
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- Figure 35: The most interested promotion method, November 2016
- Males, instead of females, show higher interest in promotions, but they are motivated by different incentives
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- Figure 36: The most interested promotion method, by gender, November 2016
- Attracting specific consumer groups with different promotions
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- Figure 37: Preference on selected promotion method, by educational level, November 2016
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- Figure 38: Preference on selected promotion method, by household size, November 2016
- Figure 39: Preference on selected promotion method, by monthly personal income, November 2016
Spending Habits
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- Quite divided spending habits
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- Figure 40: Spending habits, November 2016
- Young men and women have different views about big ticket spending
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- Figure 41: Giving up big ticket spending or not, by age and gender, November 2016
- Affluent consumers are more likely to be in the sentiment of living for the moment…
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- Figure 42: Live for the moment or prepare for the worst, by monthly household income and family structure, November 2016
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- Figure 43: Giving up big ticket spending or not, by living the moment or preparing for the worst, November 2016
- …Yet they manage spending with strict saving plans in the meantime
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- Figure 44: Having a strict saving plan or not, November 2016
- Figure 45: having a strict saving plan or not, by living for the moment or preparing for the worst, November 2016
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- Figure 46: Current financial status, by spending control preference, November 2016
- The majority prefer buying what they need instead of what’s on sale
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- Figure 47: Buying what they need or what is on promotion, by age and gender, November 2016
- The trading up trend
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- Figure 48: Value-for-money or the best one can afford, November 2016
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- Figure 49: Value-for-money or the best one can afford, by custom consumer group, November 2016
Meet the Mintropolitans
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- More than half of MinTs are very confident about the future
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- Figure 50: Current financial status, by consumer classification, November 2016
- Figure 51: Confidence in improving future financial situation, by consumer classification, November 2016
- MinTs care more about economy, environment and investment return
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- Figure 52: Confidence influencing factors, claim rate of ‘have a great impact’, by consumer classification November 2016
- MinTs plan to spend more on self-improvement and entertainment
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- Figure 53: Spending changes, claim rate of ‘spend more’, by consumer classification, November 2016
- MinTs show the future trend of spending habits
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- Figure 54: Consumption habits, by consumer classification, November 2016
Appendix: Methodology and Abbreviations
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- Methodology
- Abbreviations
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