“Economic uncertainty has made lower tier city consumers’ attitudes and behaviour more cautious. However, they are still pursuing premium brands and quality products. Their concern is not resulting in a ‘consumption downgrading’; on the contrary, it may lead to higher expectations of product value and meaningful consumption. Apart from meeting basic needs, spending on credit will give consumers cumulative pleasure in their routine shopping. Premium products with stronger characteristics represent quality and taste. The COVID-19 pandemic has also made consumers more willing to buy local brands to show their support. Domestic brands can add cultural experience elements to product design and make more efforts to interpret the historic and cultural significance of brand activities. In doing so, brands can improve product design and brand image and effectively reach lower tier city consumers.”

– Yuxi Shao, Associate analyst

Key issues covered in this Report

Consumer confidence change

Acceptance of spending on credit

Attitudes towards luxury spending

Brand perceptions and selections

Focuses in leisure spending