The Zhitong Finance App learned that on November 9, PricewaterhouseCoopers released the “Consumer Voice Survey” China report stating that in the first three quarters of 2024, China's retail market grew steadily, with GDP increasing by 4.8% and retail sales by 3.3%. Consumers tend to be cautious, and their willingness to save and invest has increased. More than half of the respondents spend more than one-fifth of their monthly income on this. China's luxury goods market has huge potential and is expected to rise to the top position in the world by 2030. Factors such as intergenerational wealth transfers, new customer groups, and the rise of experiential consumption will drive market growth.

In terms of consumer trends, “two-dimensional” people have become an important consumer group, and shopping and entertainment are on the rise

Retailers need to respond flexibly, such as rich product lines, dynamic pricing, and accurate marketing using digital tools. Many retailers and brands are aware of the huge potential of the anime, comic, game, and novel (ACGN) market to attract young consumers by creating ACGN IP products.

Among a wider group of consumers, value for money, quality, and innovation are key factors in choosing a brand. The report shows that compared to global respondents, Chinese consumers tend to choose brands with “trendsetter status” and “more creative products.”

Social media not only plays a role as a marketing channel in the Chinese consumer journey, but also forms a comprehensive ecosystem for discovery, engagement, and transactions. Social media shows a deeper integration of social commerce and content creation. We are witnessing the rise of “shopping entertainment,” that is, the seamless integration of entertainment, social interaction, and e-commerce in platforms. According to the report, 17% of surveyed Chinese consumers, above the global average, said they would rather shop on social media or follow KOLs' recommendations. Domestic brands are actively expanding their global business, and the US and Southeast Asia are the main target markets.

In terms of consumption habits, Chinese consumers have shown interest in sustainable development

Global and Chinese respondents generally believe that high-quality products and services are the key to building brand trust. Although Chinese consumers pay slightly less attention to personal data protection (71%) than the global level (83%), this is a significant increase (51%) compared to two years ago. Chinese retailers and brands need to deal simultaneously with the double pressure of strict regulations and consumer expectations.

Furthermore, Chinese consumers are increasingly concerned about sustainable development issues and are willing toESGFriendly products at an additional cost. About half of respondents prefer to buy products that are sustainable or have less climate impact.

The acceleration of the digitization process in China has had a significant impact on the purchasing experience of domestic consumers.

The report shows that with regard to in-store experiences, mainland Chinese consumers have shown strong interest in digital product labeling (46% in mainland China, 36% global), virtual reality (37% in mainland China, 26% global), and automated stores (33% in mainland China, 23% globally). As a result, the report suggests that as digital technology reshapes shopping habits, retailers must adjust their strategies to create a smooth cross-platform shopping experience to attract customers.

PwC suggests:

Ye Min, PricewaterhouseCoopers's consumer market industry managing partner in mainland China, told reporters, “Driven by economic transformation, technological progress, and changing consumer preferences, the Chinese consumer market is undergoing major changes. Despite the challenges of prudent consumption and economic uncertainty, there are still plenty of opportunities for brands that can adapt to change, continue to innovate, and reinvent themselves. “Brands and retailers need to keep pace with the times, develop more targeted development strategies and reshape their growth paths by grasping the latest market trends.”