What consumer habits will persist after the Coronavirus? Chinese consumer case
What are the new consumer trends in China? What kind of products have Chinese consumers showed interest in after lockdown? What are the new buying channels?
China is well ahead of the rest of the world. While the reopening of bars and restaurants is gradually taking place in several countries, China has resumed its normal activities few months ago. China has declared that it no longer records any case of Covid-19, marking the end of the second wave in the country. Thus, new buying trends observed among Chinese customers can provide insight into what other countries can expect at the end of the pandemic. While being locked down for several months, Chinese consumers have adopted new consuming habits. Therefore, it is normal that some of these habits persist after the Covid-19 is over.
Chinese consumers prefer online buying channels
It has been observed that an acceleration of online sales has emerged from this crisis. Due to store closure, as well as the fact that Chinese consumers, fearing the spread of Coronavirus, prefer to minimize human interactions as much as possible. For example, according to a study by McKinsey, visits to online stores have increased by 15% compared to the pre-crisis period. This new trend has even led people born before the 50s to become familiar with online shopping and the use of internet tools in order to avoid busy physical stores, thus, to minimize the risk of contamination with the virus.
In addition, while there have been several shortages in China, consumers have been more willing to break with their old habits, try new buying channels and testing new brands. For example, a survey conducted by Oliver Wyman Consulting founds that 32% of Chinese consumers have made more purchases via social media, specifically, through live streaming since the beginning of the crisis. 9% of these consumers used social platforms as a buying channel for the first time.
Redefining priorities, reducing luxury purchases?
According to studies by McKinsey, Bain, Deloitte, Secoo, etc. on Chinese consumers, this clientele has proven to be the largest consumer of luxury products in the world. According to McKinsey, the share of Chinese consumers in overall luxury consumption would have reached 44% of the world's total by 2025. However, the Covid-19 crisis has strongly encouraged Chinese clientele to redefine their needs and refocus their purchases on essential goods. Instead of "revenge spending," the Chinese decided to opt for "conscience spending."
According to figures released by the two Chinese sale giants, JD.com and Suning, the impact of the Covid-19 on consumer behavior was immediately observed. While sales of non-essential products such as televisions and refrigerators continue to decline sharply, sales of now essential items such as sanitizing products have increased drastically. On another hand, an article published by Jing Daily also highlighted the significant increase in sales of goods and services that reduce human contact such as cycling.
In addition, a study by McKinsey has found that although 80% of clothing stores have reopened, they still have 40-50% less visitors than before the Covid-19 crisis. The same goes for department stores as well as beauty and cosmetics retailers. Food and medicine stores, meanwhile, have witnessed a sharp increase in sales.
E-learning explosion in China
The education sector in China has also been strongly affected by the Coronavirus pandemic, generating considerable attention in the country. All public and private education institutions, have either delayed their back-to-school date or opted for e-learning. As a result, the number of downloads of e-learning applications has increased from 5 to 30 times compared to the number observed before.
The Chinese Ministry of Education has launched an initiative to ensure that classes are not interrupted encouraging all schools to engage in e-learning platforms and continue to provide courses amid of the crisis. For its simplicity and efficiency, the e-learning practice has now spread globally.
“Healthier” eating habits in all age groups
China is also witnessing the advent of new trends in post-Covid food consumption. The pandemic has emphasized the importance of a good lifestyle in staying healthy and avoiding the risk of infection. For example, the Chinese consumers have become more likely to focus on healthier food choices: the demand for fresh vegetables, meat and eggs has increased by 25-30%, according to the McKinsey study previously cited. However, , according to JD.com figures, the same trend can be observed in the sports equipment sector with a large increase in demand for treadmills or rowers.
An economy centered on "homemade"
The "homemade" trend has also emerged during lockdown and is apparently persisting after the pandemic. According to Chinese consumers, it seems safer to prepare their own meals in order to prevent the spread of Coronavirus. Favoring homemade will also boost the immune system. Thus, pre-made dishes were quickly abandoned in China. Similarly, sales of kitchen equipment have grown significantly. According to a survey conducted by Oliver Wyman Consulting, 80% of Chinese respondents said they had changed their eating habits by eating healthier meals. In addition, the famous streaming video platform Bilibili argued that there was an unprecedented interest in all cooking-related content.
In conclusion, Chinese consumer trends are witnessing a significant transition which resulted from Covid-19. Instead of luxury and beauty products, essential products are ranked at the top on Chinese consumers’ shopping list. A healthy diet based on fresh fruits and vegetables is preferred. Homemade meals and cooking-related products are the most popular. Sports products are much more in demand. E-learning is growing rapidly. And finally, social networks have become one of the main sales channels in China.
This represents a golden opportunity for brands. Targeting Chinese consumers requires rethinking their strategies in order to adapt to new trends that will soon become the norm. The favorite brands of Chinese consumers will be those that emphasize the values of well-being and are present in the digital channels of their targets. China has now shown us a clue about how western countries should be prepared for the new upcoming trends. Will there be common post-Covid characteristics between Chinese and European consumers?