Coronavirus (COVID-19) has left a profound impact on China’s consumer goods and service sectors. China was the first major economy to recover to pre-pandemic levels; Euromonitor International’s analysts on the ground in China deliver insights into the recovery stories and lessons one year from lockdown on eight industries. These insights on consumer behaviour changes and industry trends might also follow in other regions that are stepping into recovery.
This report comes in PPT.
Economic instability changes consumer spending behaviour in a more profound and complicated way. Repatriated luxury expenditure from the young affluent class is surprisingly resilient, but mass consumers were looking for short-term budget targets not directly related to health and hygiene, when making no compromise for hard hygiene products, ie disinfectants. Corporates need to be aware of consumers’ shopping prioritisation and opportunities in expenditure flow (shift to domestic market) amid and post-COVID-19.
Consumer awareness of emotional and physical wellbeing has been heightened by the pandemic and will stay. Despite cautious spending likely to linger for mass consumers, holistic health, home hygiene and internal happiness are nevertheless long-term shifts and should be the focus of corporates’ recovery and innovation strategy. NPDs that focus on strengthening immunity, creating a hygienic and comfortable home, as well as happiness enhancement solutions have proven valid in China.
Corporates need to rethink about going digital and grow agilely. Strengthening e-commerce to achieve channel diversification is merely one aspect of building digital agility in the post-COVID-19 era - boundless engagement with consumers through a mix of omnichannel marketing tactics and digital solutions that redefine offline business are even more crucial to shape agility and grow resilience in the face of disruptive incidents such as the pandemic. Corporates should also be ready for organisational restructure to facilitate agility.
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
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