In China, the coronavirus has fast-tracked key consumer trends, which may serve as an indication for businesses across the world*.
Increase in use of digital platforms
Online channels were the only way brands and retailers could maintain a connection with consumers, as such there was a sharp increase in e-commerce transactions. Post coronavirus, a recent study by Mckinsey shows that around 55% of consumers in China are likely to continue purchasing their groceries online, which reflects that buying behaviors have significantly changed.
Decrease in spending on ‘unnecessary goods’
Tofugear's Digital Consumer in Asia report 2020, which was conducted on consumers across more than 12 countries in Asia, during the time of the outbreak, revealed that mainland China's consumer confidence remains among the highest in Asia.
Luxury goods in China
Luxury goods in China While many experts predicted a decline in the luxury goods sector, an analysis of past recessions reflects that the luxury sector is likely to rebound faster than most other industries.China still remains one of the most important markets for luxury brands.
Larger focus on health and well-being in China
Over recent years one of the biggest trends of consumer behavior in China has been the growing awareness of the link between nutrition and health. Considering the severity of the outbreak of the Coronavirus, many Chinese consumers have shifted their spending priorities and are now adopting an even greater health-related outlook.
Author: David BECK
Excerpt from Region report. To learn more click here