{"id":12891,"date":"2023-08-16T06:30:19","date_gmt":"2023-08-16T06:30:19","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=12891"},"modified":"2025-04-23T09:08:00","modified_gmt":"2025-04-23T09:08:00","slug":"how-chinas-consumer-landscape-is-evolving","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/how-chinas-consumer-landscape-is-evolving\/","title":{"rendered":"How China\u2019s Consumer Landscape is Evolving"},"content":{"rendered":"

As China\u2019s consumer landscape evolves, brands are being compelled to consider ethical practices, localised offerings, immersive experiences and a genuine commitment to community development, writes Tom Pattinson<\/strong><\/h2>\n

China\u2019s vast consumer market defies classification. And yet, amidst the mosaic of consumers divided by everything from geography to socio-economic status, one key group has more power than most \u2013 the 300 million-strong middle class, many of whom were born after the 1980s.<\/p>\n

China\u2019s rapid transformation over the last four decades has given rise to significant shifts in consumer behaviour. The journey began with a focus on cost, dictated by limited disposable income that led buyers to chase the lowest prices. The narrative then transitioned to prioritising value, with quality versus price considerations becoming central. Subsequently, luxury brands started to lure in consumers, becoming status symbols for the newly wealthy.<\/p>\n

In the wake of these trends, a new class of savvy, conscientious consumers has emerged, especially in first-tier cities such as Beijing and Shanghai. These shoppers are driven by a desire for experiences and exclusivity and are adept at applying the knowledge they have gleaned from online research to find the best product at the best price.<\/p>\n

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The lure of localised offerings<\/strong><\/h4>\n

While international luxury labels continue to be popular with China\u2019s burgeoning middle class, brands are now adapting their offerings to resonate with Chinese consumers on a deeper level and appeal to the trend of China Chic \u2013 or Guochao<\/em><\/a> as it is known in Chinese. <\/strong>Many brands are incorporating Chinese icons or elements tied to traditional festivals or stories into their products. Moreover, limited-edition items crafted exclusively for the Chinese market are gaining traction too.<\/p>\n

This localisation extends beyond the product to the experience. Brands must establish meaningful connections with their audience through well-chosen collaborations that have cultural resonance. For example, Diageo<\/a>\u2019s Johnny Walker Blue Label launched a Forbidden City Limited Edition bottle, while British fragrance house Creed partnered with Benzo, a rapper from Chengdu, to incorporate mention of their fragrance into his music.<\/p>\n

The review revolution<\/strong><\/h4>\n

The contemporary Chinese consumer is defined by their discernment, and their willingness to seek out the opinions of their peers. When prospective buyers first start looking for a product, their first instinct is to check opinions on platforms like Xiaohongshu<\/a> and Douyin<\/a>. These reviews, often from other customers with a similar socio-economic profile, play a pivotal role in shaping purchase decisions.<\/p>\n

The significance of reviews extends across borders. A stroll down London\u2019s Bond Street or a trip to Bicester Village reveals the same pattern among Chinese shoppers \u2013 they will not hesitate to share or seek out opinions. The digital landscape has given consumers the power to scrutinise not only a product\u2019s quality and utility, but also the customer service and refund policies offered by brands. British brands should build awareness of these behaviours into their customer service ethos both in China and in the UK.<\/p>\n