Table of Contents
Overview
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- What you need to know
- Covered in this report
Executive Summary
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- Services become more important as a growth driver of the economy
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- Figure 1: Share of the contributions of the three strata to the increase of the GDP, China 2014-18
- Income growth is still fundamental to maintaining consumer confidence
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- Figure 2: Growth in per capita income and expenditure, by urban and rural, China 2018
- Consumer confidence hasn’t really been hit by economic slowdown
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- Figure 3: Confidence in improving financial status over the next 12 months, 2014-18
- Spending shifting from big ticket items to small indulgences
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- Figure 4: Attitudes toward spending – % any agree, 2013, 2016, 2018
- Online shopping festivals are still important, but will also need to evolve
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- Figure 5: Attitudes towards shopping festivals, December 2018
- What we think
Issues and Insights
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- Bursting two myths about spending
- The facts
- The implications
- Going beyond using Double 11 as a warehouse clearance sale
- The facts
- The implications
- How far can online shopping festivals go?
- The facts
- The implications
State of the Economy
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- GDP growth slowed down but there are mixed stories
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- Figure 6: Gross Domestic Product growth rate (vs the same period last year), China 2014 Q1-2018 Q4
- Figure 7: Share of GDP growth contribution, China 2015-2018
- Tax cut is going to ease household spending burden
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- Figure 8: Consumer Price Index, China January 2016-December 2018
- Figure 9: CPI and per capita income growth, China 2016-18
- Job market overall remains stable, though companies become more careful about hiring
- Total consumer spending becomes more service-driven
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- Figure 10: Total retail sales of consumer goods, China 2008-18
- Figure 11: Growth of per capita disposable income and expenditure, by urban and rural China. 2014-18
- 2019: measured stimulus and flexible policy
The Consumer – What You Need to Know
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- Attentive to financial planning
- While overall confident level remains the same, trends are different by demographics
- Spend more and enjoy life
- New trends in who decide what to buy
- More shopping festivals but big spendings remain at the year end
- Most satisfied purchases in 2018 Double 11: clothing, home and tech
Current Financial Status
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- Overall healthy, with signs of becoming more prudent
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- Figure 12: Current financial situation, 2016-18
- Tier one cities more pressured to save
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- Figure 13: Current financial situation, by city tier, 2016-18
- Generation 80s are less likely to save a lot
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- Figure 14: Current financial situation, by generation, 2017-18
- Males are more likely to struggle to save
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- Figure 15: Current financial situation, by gender, 2016-18
Confidence in Improving Financial Situation
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- The majority are still confident…
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- Figure 16: Confidence in improving financial status over the next 12 months, 2014-18
- …but different groups are feeling differently
- Females are more optimistic than males
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- Figure 17: Confidence in improving financial status over the next 12 months, by gender, 2016-18
- Confidence dampened most among business owners and civil servants
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- Figure 18: Confidence in improving financial status over the next 12 months, % saying very confident, by occupation, 2017-18
Attitudes towards Spending
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- Few would cut spending to improve financial status
- Significant increase in willingness to spend on self-indulgence over the last five years
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- Figure 19: Attitudes toward spending, % any agree, 2013, 2016, 2018
Responsibilities of Spending in Households
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- Gender differences in responsibilities
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- Figure 20: Responsibilities of spending in different categories, by gender, December 2018
- Independent younger generations
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- Figure 21: Responsibilities of spending in different categories, me, by generation, December 2018
Popular Online Shopping Festivals
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- More festivals, but Double 11 still dominates
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- Figure 22: Shopping festivals with highest spending, December 2018
- Most people think they have got the best deal
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- Figure 23: Attitudes toward online shopping festivals, “Purchases made on online shopping festivals have the greatest value for money “, December 2018
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- Figure 24: Attitudes toward online shopping festivals, “Purchase decisions made during online shopping festivals are rational”, December 2018
Most Satisfying Purchase on Double 11
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- Clothing, home and tech as most satisfying purchases, with Huawei being the most mentioned brand
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- Figure 25: Most satisfying purchase on Double 11, by category, December 2018
- With a few exceptions, most satisfying brands are largely domestic brands
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- Figure 26: Most satisfying purchase on Double 11, by brand, December 2018
- Males’ purchases are more focused
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- Figure 27: Most satisfying purchase on Double 11, by category, by gender, December 2018
- Women, high earners, and those born in the 70s are into small appliances
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- Figure 28: Most satisfying purchase on Double 11, Small appliances, by demographics, December 2018
Double 11 Heavy Spenders
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- Mid-income earners stand out in spending
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- Figure 29: Types of Double 11 spenders, by personal income, December 2018
- Not just for low price but also for fun
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- Figure 30: Attitude towards Double 11, December 2018
- Figure 31: Types of Double 11 spenders, by attitude towards Double 11, December 2018
- Experience sharing adds to the thrill and joy of spending
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- Figure 32: Attitudes towards sharing shopping experience, “Sharing with friends about items bought on online shopping festivals is very fun”, by types of Double 11 spenders, December 2018
- Generation 70s feel less engaged
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- Figure 33: Attitudes towards shopping festivals, by generation, December 2018
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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