– Chinese consumers are changing their lifestyles to align with their personal development goals
– Three-quarters of respondents say their lifestyle has changed since the Covid-19 outbreak
– In a post-pandemic economic climate, the Chinese are focusing on experiences, fine dining, cultural and sporting events, and continuing education to give new meaning to their lives
March 9, 2022
Mazars, an international audit, tax, and consulting firm, has released the report Chinese Consumers in 2021: How Priorities in Lifestyle Consumption Are Changing — An Analysis by Generation, Gender, and City Tier – which focuses on how consumers are changing their consumption habits, whether in terms of generation, gender, or the development of their city.
Published in partnership with Accor, Bulgari, Maserati, Remy Cointreau, and Noblesse, the study assesses the lifestyle preferences of consumers—including men and women from various generations and cities—and reveals the trends that will shape the Chinese consumer market in the coming years. This is the second report in this series of studies released by Mazars. The first focused on Chinese consumers of luxury brands, using the same analysis of generation, gender, and urban development.
From Having to Being
Based on original research, the report reveals that new growth categories are emerging—and with them, new opportunities. In the post-pandemic economic environment, urban Chinese are focusing on experiences—from fine dining to cultural and sporting events or continuing education—to give new meaning to their lives.
Seventy-five percent of respondents say that their consumption of lifestyle has changed since the start of the COVID-19 pandemic. Last year, the top five consumer categories were experiences (69%); well-being (47%); luxury goods (42%); higher education (39%); and entertainment and cultural life (31%). In the future, whether in the short or long term, Chinese consumers will invest more in further education, cultural activities, and entertainment. Furthermore, luxury goods now rank fifth in terms of consumer preferences.
Promising market potential
The rapid development of the Chinese economy has shaped four very different generations in just three or four decades. Given the still-enormous potential of the Chinese market and the evolving values among consumers, there is a preference for experiential consumption over material consumption. Brands must increasingly deepen the connection between lifestyle and consumers’ actual needs, while also exploring how top-tier, more sophisticated brands can add symbolic value to their products.
Embracing the Intangible
As consumers of all genders, generations, and cities are shifting their spending habits to prioritize the intangible, luxury goods are beginning to take a back seat to spending on experiences and well-being.
Despite COVID-19, the boom Travel continued in 2021, and residents of first-tier cities traveled more. Nearly 80% of respondents who rate experiential consumption highly spent money on travel, vacations, or luxury hotels last year (the vast majority domestically), indicating that Chinese consumers expect travel to be a normal part of their lives. It is worth noting that Generation X (ages 39 to 54) spent the most on travel—82%—ranking it in first place. Well-being, which ranks second in experiential spending, was particularly bolstered by men of this generation millennial (ages 25 to 38), with 75% reporting that they train at a sports club, compared with 72% from Generation Z (under 24 years old).
The report also reveals a divergence in interests between men and women when it comes to spending on nightlife. 27% of men give nightlife a higher rating than women (of whom only 14% give it the same rating). And, unsurprisingly, as consumers get older, they place an increasingly lower value on this factor. It is interesting to note that spending on nightlife is much higher in cities that have only recently become more developed—or that are not yet developed—than in those where development took place some time ago.
Future Challenges for Brands
In addition to the shift toward intangible goods, we are also seeing a change in the types of products that consumers are interested in. Gender and generation have a major influence on Chinese consumers’ spending on high-quality products, and the COVID-19 outbreak has further reshaped these consumer preferences.
Electronics jumped to second place in consumer preferences last year, and it is Generation Z that is driving this shift. In the future, jewelry and watches are expected to top consumers’ wish lists for high-quality products, rising from the fourth place they currently occupy. Although Generation Z is just beginning to demonstrate its spending power, its future purchasing power should not be underestimated.
Julie Laulusa, Managing Partner of Mazars in China and a member of the Group Executive Board, highlighted the challenges brands will face in the future: ”As society and the economy continue to change, Chinese consumer behavior is expected to become increasingly nuanced and complex. Developing targeted and differentiated market strategies, as well as offering personalized products and services across different channels and platforms, will undoubtedly be a major challenge for brands in the post-pandemic era.”.
The report was released during an event held in partnership with the Fosun Foundation in Shanghai, China, on December 14, 2021. In a panel discussion that brought together experts and leaders from Accor, Bulgari, Maserati, Mazars, and the Fosun Foundation, participants shared their views and insights on consumer values in the post-pandemic era and the report, including:
- Julie Laulusa, Managing Partner of Mazars in China and a member of the Group Executive Board
- Lei Yu, Managing Director and Chief Editor of Noblesse
- Christophe Lauras, Senior Vice President of Operations for Accor Greater China and President of the China Chamber of Commerce and Industry
- Jenny Cheah, President of Bulgari Greater China
- Mirko Bordiga, Managing Director of Maserati China
- Joann Cheng, Chairman and CEO of the Lanvin Group and Global Partner at Fosun
Click here to watch the recording.
Joann Cheng, president and CEO of the Lanvin Group and Global Partner at Fosun, says: “This report reaffirms the diversity of the Chinese market—the differences in backgrounds ”Consumer trends are driving the development of a multilevel market. With COVID-19, Chinese consumers’ spending habits are being reevaluated and reshaped."
Julie Laulusa adds: “We hope this report will provide insights far-reaching implications for the industry of lifestyle ”and other sectors in the post-pandemic era, giving both a better understanding of consumer psychology and the lifestyle ideals of different generations in today’s China, thereby enabling them to explore development strategies tailored to consumers of different generations, genders, and cities.".
Click here to do download from the full report.
Methodology
The survey was conducted using online questionnaires during the second quarter of 2021. It focused on questions about the consumption of lifestyle over the past year, changes since the pandemic, expected consumption over the next two years, and the ideal lifestyle in the future. The researchers received 4,078 valid responses, which Mazars divided into four groups: Generation Z (under 24 years old), Millennials (25 to 38), Generation X (39 to 54), and Baby Boomers (55 to 73).
About Mazars
A Mazars is a partnership an integrated international firm specializing in auditing, accounting, consulting, tax and legal services*. Operating in more than 90 countries and territories around the world, we draw on the expertise of more than 44,000 professionals - 28,000+ in the UK. partnership and 16,000+ via the Mazars North America Alliance - to support clients of all sizes at every stage of their development.
*when permitted by local legislation.
About Noblesse
Noblesse is the leading magazine in lifestyle luxury in China, dedicated exclusively to the most affluent segment of this market. With a highly targeted distribution model, transparent circulation, effective and genuine online traffic, and a solid and substantial VIP database, we are committed to providing the best content, the best reading service, and the best experience for China’s elite.