Table of Contents
Executive Summary
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- The market
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- Figure 1: GDP growth rate (vs the same period last year), China, 2014 Q3-2019 Q2
- Figure 2: CPI, China, July 2016-June 2019
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- Figure 3: Total retail sales of consumer goods, China, July 2016-Jun 2019
- The consumer
- More respondents choose to save
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- Figure 4: Current financial situation, 2016-2019
- Confidence in enhancing finances remains high but is slowly weakening
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- Figure 5: Confidence in improving financial status over the next 12 months, 2016-19
- Spending confidence is closely related to an individual’s fiscal budget
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- Figure 6: Confidence influencing factors, May 2019
- Indulgence still ranks bottom, but importance is growing
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- Figure 7: Financial priorities, May 2019
- More are buying when in need and searching for value-for-money
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- Figure 8: Spending habits, November 2016 and May 2019
- Investment products with high liquidity and lower risk are sought-after
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- Figure 9: Preference for investment products, May 2019
- What we think
Issues and Insights
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- Doing price promotions at a value-centric time
- The facts
- The implications
- Build an aspirational brand image to improve stickiness with consumers
- The facts
- The implications
- How to pitch to young and new-to-market investors
- The facts
- The implications
State of the Economy
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- GDP growth slid to 6.2% in Q2, still within expectations
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- Figure 10: GDP growth rate (vs the same period last year), China, Q3 2014-Q2 2019
- Figure 11: Share of the contributions of the three strata to the increase of the GDP, 2014-Q2 2019
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- Figure 12: Share of the contributions of the three GDP components to the GDP growth, 2015 Q2-2019 Q2
- CPI climbed up in the first half of 2019
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- Figure 13: CPI, China, July 2016-June 2019
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- Figure 14: Average year-on-year price increase for the first half of 2019
- Impact of personal tax cut in driving consumption is yet to be seen
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- Figure 15: Real growth of per capita disposable income and expenditure, by urban and rural China, 2016 3Q-2019 2Q
- Figure 16: Percentage of disposable income spent, China, 20151Q-2019 2Q
- Growth in retail sales rebound in Q2, for mixed reasons
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- Figure 17: Total retail sales of consumer goods, China, July 2016-June 2019
- Labour market pressure eased in Q2
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- Figure 18: Surveyed unemployment rate, January 2018-June 2019
- Policy outlook for the second half of 2019
The Consumer – What You Need to Know
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- Healthy finances but saving sentiment starts to grow
- A slow weakening of confidence
- Income and cost of living are the most influential factors
- Saving for long-term plans instead of big purchases
- Good enough is OK, instead of buying the best
- Safety comes first for investment products
Current Financial Status
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- Saving sentiment has grown compared to 2016
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- Figure 19: Current financial situation, 2016-19
- Deduction in personal taxes help post-80s with savings
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- Figure 20: Current financial situation, by generation, 2017-19
- Consumers in tier one cities choose to save more for uncertainties
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- Figure 21: Current financial situation, by generation, 2016-19
- High earners finding it more difficult to save compared to five months ago
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- Figure 22: Current financial situation, by generation, 2016-19
Confidence in Improving Financial Situation
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- 80% still confident, but optimism is weakening slightly
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- Figure 23: Confidence in improving financial status over the next 12 months, 2016-19
- Women feel less confident
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- Figure 24: Confidence in improving financial status over the next 12 months, by gender, 2017-19
- High earners: still more confident than others, but less so than before
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- Figure 25: Confidence in improving financial status over the next 12 months, by monthly personal income, 2016-19
- Employees at state-owned businesses and foreign enterprises become more cautious
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- Figure 26: Confidence in improving financial status over the next 12 months, by company type, state-owned business and foreign enterprises, 2018-19
- Access to credit products drives confidence
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- Figure 27: Confidence in improving financial status over the next 12 months, by current financial status, 2017-19
Spending Confidence Influencing Factors
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- Income growth and living costs matter most
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- Figure 28: Confidence influencing factors, May 2019
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- Figure 29: Importance ranking of the confidence influencing factors, December 2016 and May 2019
- Life stage influences what matters to different generations
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- Figure 30: Confidence influencing factors, by generation, May 2019
- High income consumers and tier one city residents will take macro-environment into account
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- Figure 31: Confidence influencing factors, by monthly personal income, May 2019
Financial Priorities in the Next 12 Months
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- Saving and investing for the future still come first
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- Figure 32: Financial priorities, May 2019
- Big-ticket purchases give way to self-indulgence, especially among post-80s
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- Figure 33: Financial priorities, selected activities, November 2014 and May 2019
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- Figure 34: Ranking of the financial priorities, very important, by generation, May 2019
- Lower tier cities have a more traditional mindset
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- Figure 35: Financial priorities, selected activities, by city tiers, May 2019
Spending Habits
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- Consumers become more agile in their spending
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- Figure 36: Whether follow the monthly spending plan, November 2016 and May 2019
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- Figure 37: Financial priorities, any important, by whether follow the monthly spending plan, May 2019
- Switching happens even when people love the brand
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- Figure 38: Brand loyalty, by selected demographics, May 2019
- Value for money becomes more important
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- Figure 39: Value for money versus the best can afford, November 2016 and May 2019
- Post-70s vs post-90s: patient bargain seekers vs instant gratification generation
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- Figure 40: Wiliness to wait for a promotion, by generation, and city tier, May 2019
- Nearly two in five would consider paying in instalments for big-ticket purchases
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- Figure 41: Payment preference for large items, by demographics, May 2019
Preference for Investment Products
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- Top squad unchanged
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- Figure 42: Preference for investment products, May 2019
- Men are more risk-tolerant
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- Figure 43: Preference for investment products, by gender, May 2019
- Post-90s are interested in niche investment products
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- Figure 44: Preference for investment products, by generation, May 2019
- High earners show investment expertise
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- Figure 45: Preference for investment products, by monthly personal income, May 2019
Meet the Mintropolitans
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- Uncertainties about the future make MinTs more conservative in spending
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- Figure 46: Confidence in improving the financial status, MinTs, 2016-19
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- Figure 47: Confidence influencing factors, by MinTs and non-MinTs, May 2019
- Richer investment experience
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- Figure 48: Preference for investment products, By MinTs and non-MinTs, May 2019
- Buy when needed, and use credit payments actively
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- Figure 49: Financial planning habits, by MinTs and non-MinTs, May 2019
- Different from high earners, MinTs are more exploratory in trying out new brands
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- Figure 50: Spending habits, by MinTs and non-MinTs, May 2019
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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