According to the China Consumer Survey report released by PwC on November 9, the retail market in China grew steadily in the first three quarters of 2024, with a 4.8% GDP growth and a 3.3% increase in retail sales. Consumers tend to be cautious, with enhanced savings and investment intentions, with over half of the respondents planning to spend more than one-fifth of their monthly income on this. The potential of the luxury goods market in China is enormous, expected to rank first globally by 2030. Intergenerational wealth transfer, new customer segments, and the rise of experiential consumption will drive market growth.

In terms of consumption trends, the 'second-dimensional' population has become an important consumer group, driving the rise of entertainment-oriented shopping.

Retailers need to adapt flexibly, such as enriching product lines, dynamic pricing, and using digital tools for precise marketing. Many retailers and brands are paying attention to the huge potential of the anime, comics, games, and novels (ACGN) market, attracting young consumers by creating ACGN IP products.

Among a broader consumer base, value for money, high quality, and innovation are key factors when choosing brands. The report shows that compared to global respondents, more Chinese consumers prefer brands that are 'trend-setters' and offer 'more creative products'.

In the consumer journey of Chinese consumers, social media not only plays a role as a marketing channel, but also forms a comprehensive ecosystem for discovery, engagement, and transactions. Social media demonstrates a deeper integration of social commerce and content creation, and we are witnessing the rise of 'entertainment shopping', where entertainment, social interaction, and e-commerce seamlessly merge within platforms. The report indicates that over 17% of Chinese consumers surveyed, exceeding the global average, are more willing to shop on social media or follow KOL recommendations. Domestic brands are actively expanding their global operations, with the USA and Southeast Asia as primary target markets.

In terms of consumer habits, Chinese consumers have shown an interest in sustainable development.

Respondents globally and in China generally believe that high-quality products and services are key to building brand trust. While Chinese consumers' emphasis on personal data protection (71%) is slightly lower than the global average (83%), there has been a significant improvement compared to two years ago (51%). Chinese retailers and brands need to address both strict regulations and consumer expectations.

In addition, Chinese consumers are increasingly concerned about sustainable development issues and are willing to pay extra for eco-friendly products.ESGAbout half of the respondents prefer to purchase sustainable or products with a smaller climate impact.

The digitalization process in China is significantly impacting the purchasing experience of domestic consumers.

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

PwC recommends:

Levin, Industry Leader of PwC China Mainland Consumer Market, told reporters, "Driven by economic transformation, technological advancements, and evolving consumer preferences, China's consumer market is undergoing significant changes. Despite challenges such as cautious consumption and economic uncertainty, there are still abundant opportunities for brands that can adapt, innovate, and reshape themselves. Brands and retailers need to keep pace with the latest market trends, develop more targeted growth strategies, and reshape their paths to growth."