Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The economy remains in a good shape
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- Figure 1: Gross Domestic Product growth rate (vs same period last year), China 2013 Q3-2017 Q4
- Stronger spending growth coming from rural China
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- Figure 2: Growth in per capita income and expenditure, by urban and rural, China 2017
- Most consumers have maintained a healthy financial status…
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- Figure 3: Current financial situation, 2016-17
- …and feel confident about future financials
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- Figure 4: Confidence in improving financial status over the next 12 months, 2013-17
- A stronger willingness to spend beyond Beijing and Shanghai
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- Figure 5: Overall spending willingness in the next 12 months, by city, December 2017
- Holiday and beauty services going to take the lead in discretionary spending
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- Figure 6: Ways of spending annual bonus, December 2017
- Paying by instalments is becoming more common
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- Figure 7: Usage of instalment payments in the past 12 months, December 2017
- Proactive financial management instead of a last resort
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- Figure 8: Reasons for using pay by instalment payments, by service provider, December 2017
- What we think
Issues and Insights
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- What does consumer sentiment say about 2018?
- The facts
- The implications
- Which sectors are going to benefit from more discretionary spending?
- The facts
- The implications
- Are consumers prepared to spend tomorrow’s money today?
- The facts
- The implications
The Market – What You Need to Know
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- Macro-economy in a good shape
- Consumer spending remains strong, though further room for growth exists
State of the Economy
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- GDP growth accelerated to 6.9% in 2017
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- Figure 9: Gross Domestic Product growth rate (vs same period last year), China 2013 Q3-2017 Q4
- CPI under control
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- Figure 10: Consumer Price Index, China January 2015-December 2017
- Lowest unemployment since 2002
- Spending growth remains solid, especially in rural China
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- Figure 11: Total retail sales of consumer goods, China 2008-17
- Figure 12: Per capita disposable income and expenditure, China 2014-17
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- Figure 13: Growth of per capita disposable income and expenditure, by urban and rural China. 2014-17
The Consumer – What You Need to Know
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- The majority have healthy finances
- Overall confidence about future remains high
- More discretionary spending going to services
- Consumers are getting used to paying by instalments
Current Financial Situation
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- Signs of more polarising spending habits
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- Figure 14: Current financial situation, 2016-17
- Young females are most relaxed about saving
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- Figure 15: Current financial situation, by age and gender, December 2017
- Key household income thresholds
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- Figure 16: Current financial situation, % of “I can save a considerable amount of money at the end of the month”, by monthly household income, 2016-17
- Property ownership still makes a big difference
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- Figure 17: Current financial situation, by property ownership, December 2017
Confidence in Improving Future Finances
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- Overall confidence still remains high
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- Figure 18: Confidence in improving financial status over the next 12 months, 2013-17
- But not all groups feel the same
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- Figure 19: Confidence in improving financial status over the next 12 months, % of “very confident”, by age and city tier, 2013-17
- White collar workers in foreign enterprises are least confident
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- Figure 20: Confidence in improving financial status over the next 12 months, % of “very confident”, by occupation and company type, 2013-17
- Those spending more than they should are becoming less confident
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- Figure 21: Confidence in improving financial status over the next 12 months, by current financial situation, 2017 vs 2016
Future Spending Sentiment
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- More than half would spend more
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- Figure 22: Overall spending willingness in the next 12 months, by confidence in future financial status, December 2017
- Young males are ready to open their purses
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- Figure 23: % willing to spend more in the next 12 months vs % can currently save considerably, by age and gender, December 2017
- Lower tier cities catching up
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- Figure 24: % willing to spend more in the next 12 months vs % can currently save considerably, by city, December 2017
Ways of Spending Annual Bonus
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- Beauty treatments going to take a bigger share of people’s pocket
- Signs of getting weary about fashion, expensive meals, and consumer electronics
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- Figure 25: Ways of spending annual bonus, December 2017
- Demographic differences
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- Figure 26: Selected ways of spending annual bonus, by city tier, December 2017
Use of Instalment Payment
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- Seven in 10 have used some sort of pay by instalments services
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- Figure 27: Usage of instalment payments in the past 12 months, December 2017
- Are young consumers more open to paying by instalments?
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- Figure 28: Usage of instalment payments in the past 12 months, by age, December 2017
- Higher earners are more likely to pay by instalments
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- Figure 29: Usage of instalment payments in the past 12 months, by household income and region, December 2017
- Self-willing rather than a last resort
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- Figure 30: Reasons for using pay by instalment payments, by service provider, December 2017
Meet the Mintropolitans
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- Significantly more MinTs are better off
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- Figure 31: Current financial situation, by consumer classification, 2016-17
- A wider gap between MinTs and Non-MinTs
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- Figure 32: Confidence in improving financial status over the next 12 months, by consumer classification, 2015-17
- Holidays, beauty treatments, cultural events and cars
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- Figure 33: Ways of spending annual bonus next time, by consumer classification, December 2017
- More proactive use of pay by instalment services as a finance tool
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- Figure 34: Reasons for using pay by instalment payments, by consumer classification, December 2017
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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