What you need to know
China continued to deliver a strong economic performance in 2018. Consumers are willing to pay more for discretionary items and services. Self-indulgence is the most important driver of premiumisation. Investing in yourself to gain knowledge, hobbies and experience the world outside is becoming even more worthwhile today.
But there are obvious uncertainties in the coming years. As such not all sectors can take trading up for granted. Consumers are becoming more frugal in some categories given more price competition and becoming skilled at utilising brands as an indicator of good value-for-money products.
Covered in this Report
This Report is an annual summary of the key trends and 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 (MHI) and monthly personal income (MPI). The table below shows the definitions of each consumer group.
| 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 |
| Tier one cities | Tier two and lower cities | |
| Low personal income | RMB2,000-5,999 | RMB2,000-4,999 |
| Mid personal income | RMB6,000-9,999 | RMB5,000-8,999 |
| High personal income | RMB10,000 and above | RMB9,000 and above |
