2 Megatrends in China

Megatrends in China
July 2023
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MEGATRENDS IN CHINA 33
Scope
This report is part of a series of four highly visual reports covering the 40 markets surveyed in the This Megatrends report highlights long-term
annual Voice of the Consumer: Lifestyles Survey. trends resulting from shifts in consumer
values and behaviour. It provides a summary
of each of Euromonitor International’s eight
Lifestyles Country Report Series
Draws together insights from across the Lifestyles Survey and focus megatrends, and insights as to how each
Consumer Lifestyles provides analysis on key trends. trend has manifested in China.
Reviews shifting consumer traits and values that influence

Consumer Values and
purchasing and consumption behaviours. (Visual only
Behaviour
report)
Explores consumers beyond their demographic profile and

Consumer Types provides a different perspective on shopping habits and
path to purchase.
Connects survey insights with Euromonitor International’s Disclaimer

Megatrends eight megatrends, including case studies highlighting how Much of the information in this briefing is of a
companies are responding to changing attitudes and statistical nature and, while every attempt has
expectations. been made to ensure accuracy and reliability,
Euromonitor International cannot be held
responsible for omissions or errors.
Note: In the Lifestyles Survey, respondents provide their age within 5-year increments (15-19, 20-24, 25- Figures in tables and analyses are calculated from
29, etc). Given these parameters, generations cited in this report series are defined as follows: Generation unrounded data and may not sum. Analyses found
in the briefings may not totally reflect the
Z: aged 15 to 29; Millennials: aged 30 to 44; Generation X: aged 45 to 59; Baby Boomers: aged 60+.
companies’ opinions, reader discretion is advised.
Contents
Convenience
Digital living
Diversity and inclusion
Experience more
Personalisation
Premiumisation
Pursuit of value
Shopper reinvented
Sustainable living
Wellness
The drivers shaping consumer behaviour

There are five socioeconomic drivers generating and shaping consumer megatrends. These
long-term shifts explain the ongoing changes we see in consumer behaviour.
▪ Shifting Economic Power: Emerging market economies have seen strong growth at a time
when growth in advanced economies has faced headwinds.
▪ Population Change: Trends such as urbanisation, migration and ageing are combining to
reshape consumer lifestyles and purchasing decisions.
▪ Environmental Shifts and Pressures: Competition for resources and increasing awareness of
environmental challenges are having a transformative effect on consumer behaviour –
sometimes at a rapid pace.
▪ Technological Advances: Play a pivotal role in consumer decision-making and the ability of
business to meet the needs of today's consumer. They have created upheavals in consumer
expectations, lowered the barriers of entry and inspired new business models.
▪ Changing Values: Hyperconnectivity is giving individuals access to more information than
ever before, educating them on evolving social, cultural and political landscapes.
Megatrends framework
Megatrends reports provide
insight into Euromonitor
International’s 10 megatrends
identified as being the most
important cross-industry
consumer trends that
businesses should be focused on
during the next 10-15 years.
Megatrend analysis helps
companies understand these
important long-term shifts in
consumer behaviour, enabling
them to assess future impact
and proactively build relevant
forward-thinking strategies.
This report provides an overview
of how these influential
megatrends are impacting China.
Businesses harness megatrends to renovate, innovate and disrupt
Innovative and disruptive companies that understand the drivers shaping the world and the resulting megatrends use understanding this to
execute change, from renovation, where a company improves on previous ideas to increase market share, through to innovation, where a
company grows an entire category, and ultimately disruption, creating new markets where there were none before. Case studies in this
report highlight trend manifestations: examples of products and services that respond to megatrends.
Convenience
Time is increasingly a crucial commodity for today’s consumers, who now demand convenience across all aspects of their lives in a world
that is increasingly complex and noisy. Convenience is the desire for effortless efficiency across every encounter and interaction as and
when the individual wants and where the individual is, leading to easier and more enjoyable experiences. Convenience is woven in
without the consumer asking for it.
Convenience
The rising number of single-person households, as well as growing urbanisation and more intense demands at work and at
1 home, are forcing China’s consumers to seek ways to minimise time spent on everyday tasks. Our survey shows that a
substantial 63% of respondents say they feel under constant pressure to get things done, compared with a global average of
41%. Post lockdown, 44% state that they continue to carry out work-related tasks from home at least weekly.
These factors have driven demand for convenience in every category, including retail, food options, travel and tech. Indeed, 64%
2 of consumers (versus 42% globally) admit that they are willing to spend money to save time. As many as 57% (compared with
32% globally) now shop online from home at least weekly. Nevertheless, online banking is still relatively uncommon, with just
41% (much lower than the global average of 63%) saying they access a bank account online at least weekly.
The need for convenience has driven demand for food delivery, fast food, ready meals and meal kits – especially among younger
3 consumers: 23% of Millennials (as opposed to just 7% of Baby Boomers) say they do not have time to cook. 26% of this cohort
think that eating in a restaurant is more convenient, and 24% of both Millennials and Gen Z consider ordering food for delivery
to be more convenient. Half of consumers (including 57% of Gen X) say they reheat or prepare a ready meal at least weekly.
69% 64% 29%

looking for ways to simplify life willing to spend money to save time seek a job that allows for a strong work/life
balance
Source: Euromonitor International Voice of the Consumer: Lifestyles Survey, fielded January-February 2023
10
Shenzhen-Jiangmen high-speed railway construction is underway

Characteristic
▪ The construction of the Shenzhen-Jiangmen
high-speed railway officially started in October
2022. The main line is 116km long and connects
five central cities in the Greater Bay Area.
Context
▪ The rapid growth of Chinese cities in the Greater
Bay Area, including Shenzhen and Guangzhou,
necessitates increased investment in
infrastructure development. This is crucial to
accommodate the growing population and
expanding industries in the region.
Consequence
▪ Upon its completion, the new line is set to
significantly enhance connectivity along the
coastal corridor, linking the cities of Shenzhen
and Jiangmen within a mere one-hour commute.
Image source: Unsplash Passport edition: Consumers 2023ed

11
Millennials are the most likely to use tech to make life easier
12
Consumers want more flexibility
13
Shoppers want to see what they buy
14
Convenience drives e-commerce demand
15
Meal kits are gaining popularity: especially among Gen X
Digital living
Consumers spend an increasing amount of their time in the digital space. Ongoing technological advancements continue to accelerate
the digitalisation of all our daily routines, from shopping, entertainment and socialising through to work and learning. The evolution of
the metaverse promises to democratise access to an enhanced, immersive 3D layered web experience, enabling the seamless
convergence of our physical and digital lives.
17
Digital living
China’s digital landscape has evolved significantly. The government claims that the country has built the world’s largest 5G
1 network, with more than 2.3 million 5G base stations now covering all prefecture-level cities, counties and urban areas
nationwide. Widespread lockdowns up to the end of 2022 meant that consumers have become used to life online: our survey
shows that 72% of respondents now use technology to improve their day-to-day life.
Digitisation has reached most areas of people’s lives, including socialising, shopping, leisure, food delivery and finance. As many
2 as 61% of consumers now say they prefer to communicate online rather than face-to-face or by phone, and 62% visit a social
networking site at least weekly. E-commerce is well developed, with 47% (versus 36% globally) saying they buy an item or
service online at least weekly.
The growth of 5G and rising incomes have prompted increased demand for smart gadgets. As many as 44% of Millennials say
3 they have a smart appliance, and 33% of this generation has an in-home virtual assistant. Most Chinese (52%) say they freely
share their personal information online, compared with just 26% of their global peers, while 51% (versus 28% globally) say they
feel comfortable sharing their personal data with private companies.
72% 55% 27%

use tech to improve everyday life are lost without the internet will shift everyday activities to online in
next five years
18
Ride-hailing service DiDi unveils prototype for autonomous passenger car

Characteristic
▪ Ride-hailing service DiDi Chuxing announced
plans in spring 2023 to introduce autonomous
passenger cars by 2025. The DiDi Neuron has no
steering wheel, gear stick or pedals. Its robotic 72%
arm can pick up luggage, wake passengers and of consumers
retrieve items from throughout the cabin. use tech to
improve their
Context day-to-day life
▪ Didi has been testing its self-driving technology
solutions with a small fleet in Shanghai. The
company also announced that its KargoBot unit
35%
plan to increase
would deploy 100 “robotrucks” before the end their spending
of 2023, with plans to expand the fleet to more on transport in
the next year
than 1,000 over the next two years.
Consequence
▪ The government is said to favour the adoption 28%
want to reduce
of autonomous vehicles on a large scale. The their carbon
concept will tap into demand for efficient, emissions
sustainable and low-cost transport; however,
safety issues will remain a concern.
Image source: DiDi
Most Chinese regularly order food for delivery
20
Internet users are highly protective of their personal data
21
Millennials prefer online anonymity
22
Friends and family remain the most trusted information source
23
Consumers expect more face-to-face activity post-pandemic
Diversity and Inclusion
Increasing attention to consumer values results in the empowerment of everyone. Inclusion for all means unlimited accessibility and
fairness. Race, ethnicity, gender, age, physical abilities, culture and religion, and financial position are not barriers of entry, but rather
check points for creating universal design. Consumers increasingly value “no one-size-fits-all” products and services, while businesses
move from mere compliance to the natural development of diverse workforces.
25
Diversity and inclusion

Although China’s constitution provides for equality for all citizens, women are still largely responsible for child and elder care,
1 and occupy less than 8% of senior leadership positions, while LGBTQ+ content is censored on social media. Mental health issues
continue to be stigmatised, despite some progress. In spite of this, our survey shows that as many as 70% of Chinese consumers
feel that their identity is accepted by society, and 71% are comfortable expressing their identity with friends and family.
Despite claims of “zero tolerance” by the authorities, prejudice continues to be a problem in China. The number of foreigners
2 working in Shanghai and Beijing has declined due to a change in tax laws, as well as the stringent lockdown measures that were
in place until December 2022. Notwithstanding this, 64% of Chinese respondents say it is important to experience other
cultures, and 66% think that international products are more readily available than they were five years ago.
Companies are starting to recognise the benefits of a workplace that supports diversity, equity and inclusion. In line with their
3 global counterparts, 35% of Chinese consumers say they buy from brands that support social and political issues aligned with
their values, while 29% of Millennials boycott brands/companies that do not share their social or political beliefs. Furthermore,
29% of consumers (including 33% of Millennials) share their opinions on social media.
25% 15% 70%

believe their identity is accepted by society
feel good buying eco-conscious/ethically- want to work for a company that takes (eg gender, age, race/ethnicity/religion,
conscious products ethical and social responsibilities seriously income)
26
Tmall’s senior-led live stream event breaks the traditional mould

Characteristic
▪ Tmall launched its “Three Thumbs Up” initiative
in March 2023, aimed at recruiting senior live-
streamers and diversifying its content. A three-
hour live shopping show hosted during evening 50%
prime time was presented by three women aged forecast growth
over 60. in China’s 65+
population
Context between 2022
▪ Live streaming is very popular in China. Older and 2032
influencers are making their voices heard, and in
response brands are ditching airbrushed filters,
15%
of Baby Boomers
using images that better align with seniors’ buy from social
contemporary lifestyles and using content media platforms
relating to mature consumers.
Consequence
▪ In light of China’s growing silver economy, media
56%
of consumers
will continue to change the way older people are trust
depicted. Not only will this boost sales among bloggers/social
older consumers, it will resonate with young media
influencers
people attracted to companies that address
Image source: SocialBeta issues such as ageism. Passport Edition: 2023
27
Younger generations are vocal in sharing their opinions online
28
Millennials are most eager to help those in need
29
Most Chinese feel comfortable expressing their identity

Acceptance of Identity by generation
n = 1,038; % of respondents
Generation Z Millennials Generation X Baby Boomers
66% 78% 79% 61%
65% 74% 78% 62%
67% 69% 67% 53%
15% 13% 14% 12%
30
Gen Z pay the most attention to company practice
Experience more
Consumers are prioritising experiences over things. They engage directly with a product/service and in return they receive an enhanced
and unique interaction with the brand. Consumers are seeking out authentic experiences that suit their individual tastes, preferences
and lifestyles. Appealing to the senses and using technology as an enabler, brands strive to provide a value-added experience.
32
Experience more
Following years of enforced lockdowns during the COVID-19 crisis, which were not eased until December 2022, the Chinese are
1 eager to start living life to the full again. Our survey shows that 61% of consumers (compared with a global average of 56%)
think it is important to spend money on experiences and 71% value “real world” experiences. On at least a monthly basis, 60%
go shopping for leisure, 57% socialise with friends in person, 39% go to the cinema and 33% go on day trips – all well above the
global averages for these activities.
Online entertainment developed significantly during the pandemic, when consumers were often confined to their homes for
2 long periods. 54% now say they value online virtual experiences and 62% socialise with friends online at least monthly. 28%
(versus 16% globally) state that they attend virtual events/concerts at least monthly. Conversely, however, the Chinese are still
far less likely than their global counterparts (32% versus 46%, respectively) to subscribe to online streaming services.
Video gaming continues to be very popular in China, with 42% of respondents saying they do this at least weekly. With the rise
3 of 5G, augmented reality (AR) and virtual reality (VR) experiences are becoming more commonplace: 27% (compared with 16%
globally) say they use AR or VR to enhance their shopping experience, while 26% (including 31% of Gen X) engage with
metaverse platforms at least weekly.
71% 54% 64%

value real world experiences value online virtual experiences seek curated experiences tailored to their
tastes
33
Tims China partners with Easy Joy convenience stores to create new coffee experience
Characteristic
▪ Tims China partnered with Sinopec-owned
convenience chain Easy Joy in July 2022 to sell
co-branded RTD coffee and to open Tims
Express kiosks within Easy Joy outlets. The 245%
kiosks are aimed at providing customers with a growth in the
convenient and premium coffee experience. number of
coffee and tea
Context shops over
▪ Since China ended its zero-COVID policy, 2017-2022
consumers are eager for new experiences.
Against the backdrop of evolving coffee culture,
69%
of consumers
Tims China (the franchisor of Tim Hortons in like to try new
China) is also expanding its own network of products and
services
coffee shops.
Consequence
▪ Coffee shops will continue to see strong growth. 59%
forecast growth
Product innovation (including co-branding in convenience
initiatives) will be key to fostering consumer store sales over
loyalty, especially among young people. Tims 2022-2027
plans to eventually open locations across all of
Image source: Tims China Easy Joy’s 27,800 outlets. Passport Edition: 2023
34
Online socialising is the top leisure activity as consumers emerge from lockdown
35
Chinese are keen to soak up local culture when travelling
36
More consumers prefer real world than online experiences
Personalisation
The growth of individualism and self-orientated lifestyles is leading to rising consumer expectations for highly customisable and
personalised products and services. These demands are increasingly met by improvements to technology and data collection that
provide consumers with insights on their individual interests, lifestyles, health, nutrition and bodies, with enterprising companies
offering solutions to address concerns that arise from this information.
38
Personalisation
As life returns to normal in the aftermath of the pandemic, consumers have become more aware of the need to focus on their
1 personal wellbeing, and seek products and experiences that are geared towards their personal needs and preferences. Our
survey shows that the majority (63%) of Chinese respondents, compared with just 41% of their global counterparts, now say
they feel under constant pressure to get things done.
Despite the high level of conformity usually associated with Chinese culture, modern consumers are keen to stand out from
2 their peers and are highly status-aware. As many as 65% (compared with 47% globally) state that they like to be distinct from
others, while a substantial 70% (versus 43% globally) say it is important for others to think they are doing well. In keeping with
this, 61% (compared with 39% globally) consider it important to cultivate a personal brand online.
These traits influence buying choices and interactions with brands. Two thirds (66%) of respondents want products and services
3 that are uniquely tailored to them, and 63% say they like to be actively engaged with brands. This, combined with the
convenience trend, has driven demand for subscription services, with 33% of Millennials (compared with 15% of their global
peers) saying they subscribe to curated products selected by brand or company.
65% 60% 61%

say it is important to cultivate their personal
like to be distinct from others share their data in order to receive brand online and manage others’
personalised and targeted offers/deals perceptions of them
39
Case study: Palm Guixi app connects singles for matchmaking events
Characteristic
▪ In March 2023, a state-sponsored
matchmaking app called Palm Guixi was
launched in the Jiangxi province in the city of
Guixi. The app is designed to organise blind
dates through matches picked out based on
tracking data.
Context
▪ The app is backed by the Chinese government
as part of its efforts to address the declining
marriage and birth rates in the country. In
2022, China’s birth rate reached an all-time
low.
Consequence
▪ By facilitating connections and relationships,
the app aims to increase the likelihood of
users finding suitable partners for marriage.
Image source: Unsplash Passport edition: 2023

40
Chinese are keen to cultivate an online persona
41
Individuals like to stand out from others
Premiumisation
Slowing volume growth has led brands to seek new ways to drive value expansion. Concentration of wealth and income has created new
demand for high-end offerings. Consumers everywhere demand more choices and more tiers – from discount and mass to “masstige,”
luxury, and beyond – allowing them to spend more on what matters most. Global mass brands are giving way to niche brands and
personal “brand portfolios”, as consumers at all income levels seek products, services and experiences which reflect their personal
identity.
43
Premiumisation
As incomes have increased, there has been a major shift towards more premium products in China. Post-pandemic, consumers
1 have become more mistrustful of poor quality items and are willing to spend money on things that are safe and effective. In
keeping with this, our survey shows that as many as 65% of consumers in China (well above the global average of 43%) prefer
branded goods to non-branded alternatives.
There is a high level of aspirational purchasing among Chinese consumers, with a growing emphasis on curated products and
2 experiences that differentiate them from others. As many as 65% (compared with 47% globally) state that they like to be
distinct, and 18% of Gen Z say they seek niche brands that are hard-to-find or unique. 66% want products and services that are
uniquely tailored to them.
Notwithstanding the rising cost of living, demand for convenience means that 64% of Chinese respondents (versus 42% globally)
3 are willing to spend money to save time. However, when it comes to clothing purchases, Chinese consumers are far less likely
than the global average to say they look for high quality (25% versus 44%, respectively). When buying food, as many as 35% are
willing to pay more for health and nutritional qualities – an attribute that tops all others.
67% 24% 66%

believe their investments will have long- buy fewer, but higher quality things want products and services that are
term value uniquely tailored to them
44
Freshippo grows its private label, featuring convenience and premiumisation

Characteristic
▪ Freshippo, the Alibaba-owned grocery chain, has
added new products to its private label sauce
and condiments range. SKUs include spice kits
for stewing beef and lamb or for tea-egg, both 38%
common dishes that require the addition of of consumers
various kinds of sauces and spices. plan to increase
spending on
Context private label
▪ Sauces, dips and condiments is a growth
category in China. Products with convenience
and premium attributes are expected to
6%
forecast real
outperform others. This new product line value growth in
features premium attributes such as clean label, soy sauces sales
over 2022-2027
organic and long fermentation.
Consequence
▪ Freshippo’s private label line is creative in terms
25%
of Millennials
of flavours, and is expected to lead the new are attracted to
product development of the sector. Given its premium or
high frequency in terms of consumer touch gourmet
foods/drinks
points, consumers’ awareness and acceptance
Image source: hema.taobao.com of premium products will rise. Passport Edition: 2023
45
Gen X are the most eager for a simpler life
46
Millennials and Gen X are the most confident in their long-term investments
Personal traits and values by generation
n = 1,039; % of respondents (agree and strongly agree)
59% 76% 74% 59%
65% 70% 72% 56%
57% 71% 72% 56%
58% 72% 72% 51%
57% 66% 70% 53%
47
Consumers prioritise nutrition and quality

Ranking of features that consumers are willing to pay more for
n = 1,039; % of respondents
Food Home Care/Cleaning Products Apparel and Footwear

Health and nutritional
35% Performance claim 24% High quality 18%
properties
All natural 22% High quality 22% Comfortable 18%
Environmentally conscious or
16% All natural 19% All natural 16%
eco-friendly
100% organic 16% Ingredient formulation 16% High performance 14%
Non-GMO 14% 13% Perfect fit 13%
eco-friendly
Hormone free 12% Hypoallergenic 13% Durable 13%
Premium or gourmet 12% Sustainably produced 13% 13%
eco-friendly
Superior taste 12% Strong or well-known brand 13% Strong or well-known brand 12%
Strong or well-known brand 11% 100% organic 11% Design or style suited to me 12%
Locally sourced or
11% Multi-functional 10% Sustainably produced 12%
manufactured
Pursuit of Value
Consumers actively find ways to seek value, economise and save money. Drivers of this behaviour are not only the fear of eroding living
standards and the need to stretch limited resources in the face of the cost-of-living crisis, but also the value shift towards conscious
consumption, and rising concerns about environmental issues. Consumer habits to maximise value are long-lasting, as consumers
prepare for future shocks.
49
Pursuit of value
Although inflation in China reached an almost two year high of 2.8% in September 2022, this was still well below inflation levels
1 experienced in other countries, where the war in Ukraine affected global food and energy prices. Nevertheless, even small price
increases can have a significant impact on low-income and young consumers. Our survey shows that 64% of respondents in
China (compared with a higher 74% of their global counterparts) are concerned that the cost of everyday items is going up.
Despite having become more price-conscious, 55% of consumers (though only 43% of Gen Z) say they prefer to spend money
2 rather than save it, and a mere 14% say they like to find bargains. This could be a question of personal pride, given that 70%
consider it important that others think they are doing well. Notwithstanding rising living costs, as many as 40% planned to
increase their overall spending in the next year, and just 35% said they would increase visits to discount stores.
Due to their love of new products, the circular economy has been slow to take off among Chinese consumers. Although only
3 18% say they would be willing to buy items that do not last a long time if they are inexpensive, just 23% (compared with 41% of
their global counterparts) say they repair broken items rather than replacing them. Moreover, a mere 11% (versus 28% globally)
say they are willing to buy second-hand or previously-owned items, while 18% would rent items instead of buying.
24% 18% 9%
would rather buy fewer, but higher quality share/swap items or services Plan to cut back on spending in 2023
things at least monthly
50
Discounter HotMaxx announces ambitious expansion plans

Characteristic Forecast Sales Through Discounters
▪ Launched in 2020, HotMaxx had expanded to 2022-2027
CYN million
500 outlets by 2022. The discounter’s focus on
4,500
soon-to-expire food and drink allows it to offer
high-quality products at low prices, making it a 4,000
popular choice among low-income and value-
conscious middle class consumers. 3,500
Context
3,000
▪ The rising cost of living has created demand for
value for money, with many consumers seeking 2,500
high-quality products at reasonable prices. This
has led to the rapid growth of discounters, 2,000
especially those specialising in soon-to-expire
food. 1,500
Consequence
1,000
▪ Due to its success, HotMaxx is planning to open
an additional 4,500 stores by 2025, which shows 500
the company’s commitment to expansion and
desire to capitalise on the growing demand for 0
value-priced products. 2022 2023 2024 2025 2026 2027
Image source: HotMaxx Passport edition: Retailing 2023ed

51
Consumers are using technology to enhance the shopping experience
52
Most Chinese feel financially secure despite rising costs
53
The circular economy has not yet been fully embraced
54
Gen Z are the most likely to be planning to save money
Frugal purchasing intentions by generation

n = 877; % of respondents
49% 47% 48% 50%
56% 48% 44% 32%
36% 35% 39% 30%
34% 33% 36% 34%
7% 5% 5% 7%
Shopper reinvented
How we buy goods and services is undergoing radical shifts. Widespread access to the internet has ushered in new competitors, partners
and channels. Consumers are now making purchases across different platforms: from merchants’ apps to social networks to voice-driven
platforms. Merchants must be prepared to engage with consumers anytime and anywhere. The customer journey of the future weaves a
brand into the entire experience, providing value before, during and after the purchase, and converting a transaction into a relationship.
56
Shopper reinvented
China’s high level of connectivity and fast data speeds mean that e-commerce is very well developed. As many as 57% our
1 survey respondents say they shop online from home at least weekly, compared with a much lower 32% of their global
counterparts. 47% (versus 36% globally) say they buy an item or service online at least weekly, including 55% of Millennials.
Social commerce is also very popular, with 35% of Gen Z saying they shop on social media platforms.
Technology has made Chinese shoppers more discerning: 64% say they extensively research the products and services they
2 consume. 40% claim they compare prices online, and 40% read consumer reviews, at least weekly (compared with respective
global averages of 37% and 35%). Consumers are also starting to engage more with brands online: 30% say they “follow” or
“like” a company’s social media feed or post, while 26% provide feedback via social media.
In addition to the high volume of online shopping, the Chinese also enjoy browsing stores, with as many as 60% (compared with
3 just 47% globally) saying they go shopping for leisure at least monthly. Although only 24% (versus 33% globally) like visiting
shopping malls, Chinese respondents are also more likely than their global counterparts to say they are looking for personalised
and tailored shopping experiences (24% versus 19%, respectively).
27% 30% 27%

bought something via a social media “follow” or “like” a company’s social media use AR or VR weekly to enhance shopping
platform in the last six months feed or post experience
57
Sephora’s “Store of the Future” experiential concept opens in Shanghai

Characteristic
▪ Beauty chain Sephora opened its “Store of the
Future” concept in Shanghai in June 2023. The
store features AI-generated looks and
customised skin analysis, mobile POS, QR tools 37%
and a “Beauty Live Studio” for hosting exclusive of Millennials
events and masterclasses. buy beauty,
personal and
Context health items at
▪ Experiential retail is a growing trend in China. least monthly
With its new store concept, LVMH-owned
Sephora offers customers a curated beauty offer,
30%
of Gen Z want
hyper-personalised services and classes, and personalised
digital touchpoints designed to unlock shopping
experiences
“consumer journeys” within the store.
Consequence
▪ The future will see a further merging of physical 27%
of consumers
and digital channels as retail brands focus on use AR or VR to
developing more seamless, enjoyable and enhance their
personalised shopping experiences – including shopping
experience
the growing use of in-store automation.
Image source: Sephora Passport Editino: 2023
58
Celebrity brand endorsements hold sway among Chinese consumers
59
Consumers still prefer to buy clothes and large appliances in person
60
S-commerce is well developed
61
Millennials are the most likely to interact with brands online
Sustainable living
Among consumers and businesses, increasing attention is being paid to ethics and moral values. This translates into decisions framed by
concerns about the environment, sustainability, animal welfare, production and labour practices, as well as a desire to positively impact
communities and people.
63
Sustainable living
Chinese consumers are aware of climate change and the increased risk of more frequent extreme weather events, particularly
1 rising temperatures and flooding. Our survey shows that 68% of respondents are worried about climate change and 69% say
they want to have a positive impact on the environment. However, although consumers are taking a greater interest in issues of
sustainability, they score lower than the global average on most points related to green buying behaviour.
Despite having the world’s largest plastic recycling capacity, a mere 24% of consumers say they recycle items, which was less
2 than half the global average of 53%. Just 28% and 31% are concerned with reducing plastics use and food waste, respectively,
compared with 55% and 56% of their global counterparts. 29% (including a higher 35% of Millennials) claim to buy sustainably-
produced items, while 25% say that buying eco-conscious/ethically-conscious products makes them feel good.
Interest in the circular economy is still minimal in China. Moreover, although ongoing urbanisation and higher car usage are
3 contributing to the pollution problem in cities, only 28% of consumers (versus 33% globally) say they are trying to reduce their
carbon emissions by driving less or taking public transport. Similarly, just 28% (versus 44% globally) claim to be reducing their
energy consumption or using energy-efficient products. This could, however, change as fuel prices continue to rise.
61% 68% 24%

feel they can make a difference through are worried about climate change of consumers recycle items
their choices and actions
64
Alibaba’s Tmall moves to promote sustainability through green labelling

Characteristic
▪ In 2022, Alibaba Group’s e-commerce platform
Tmall introduced eco-friendly labels to assist
consumers in assessing the environmental
impact of their purchases. Labels indicate the 66%
potential carbon emissions that buyers can save of consumers
by using an energy-efficient device. feel they
personally
Context contribute to
▪ Alibaba has made sustainability a top priority, climate change
and was among the first tech companies to
announce carbon neutrality goals in Asia Pacific.
58%
say they trust in
According to its 2021 Alibaba Group Carbon environmentally-
Neutrality Action report, the company aims to conscious labels
achieve carbon neutrality by 2030.
Consequence
▪ Although Chinese consumers currently lag 9%
forecast retail e-
behind many countries when it comes to green commerce sales
actions, interest is likely to grow in future, as growth in 2023
companies strive to meet international
sustainability targets.
Image source: Alibaba Group Passport Edition: 2023
65
Most people are concerned about the impact of global warming
66
The Chinese lag behind global counterparts when it comes to recycling
67
Use of sustainable packaging tops the list of green activities
68
Consumers are becoming more aware of brand values
69
Recyclable packaging is considered the most sustainable
Wellness
Consumers are embracing healthier lifestyles, with a greater focus on self-care and prevention. The active pursuit of optimal holistic
wellness extends beyond physical health to incorporate mental, spiritual and emotional wellbeing, alongside increasing considerations of
social purpose and planetary health. Advancements in technology and digital adoption facilitate superior diagnostics and monitoring,
and play an integral part in the self-optimisation journey.
71
Wellness
The pandemic reinforced the strong interest among a large proportion of Chinese consumers in health and wellness products
1 and services, especially those that promote a preventative approach to better health. According to our survey, 49% of
respondents take health supplements at least weekly, and 47% (compared with 34% globally) say they intend to spend more on
health and wellness products and services in future. 31% visit health-related websites at least weekly, including 44% of Gen X.
Chinese consumers tend to have an all-round, holistic approach. 30% of consumers (including 40% of Millennials) take part in
2 stress-reduction activities. Since the start of the pandemic, there has been a notable increase in the use of sleep aids, with 66%
taking these. Additionally, as many as 46% of consumers have therapy or counselling, including 55% of Gen X. In line with their
global counterparts, 61% of respondents participate in physical exercise at least weekly.
The Chinese are less likely than their global counterparts to say they look for healthy ingredients in food and drink (39% versus
3 52%, respectively). Moreover, with more people now able to afford meat than ever before, only 12% say they are trying to
reduce their meat consumption. Young consumers are most likely to actively monitor what they eat to help manage their
weight (41% of Gen Z and Millennials, versus just 23% of Baby Boomers).
24% 13% 66%

want to work for companies that prioritise shop online to avoid interaction in-store use sleep aids for stress-reduction
health and safety
72
YouKuai’s plant-based foods brand Zrou set for expansion

Characteristic
▪ YouKuai announced a partnership with food
distributor Usource in May 2023 to distribute its
Zrou brand of plant-based products to dining
establishments, breweries and hotels across 15%
Beijing, Tianjin and other parts of Northern of Baby Boomers
China. are reducing
their meat
Context consumption
▪ Consumers are starting to show a greater
interest in meat and dairy alternatives. Youkuai’s
products are made from non-GMO soybeans,
8%
of consumers
and include ground pork, burgers, meatballs and are vegan
chicken nuggets, while Usource distributes the
plant-based cheese brand Grassroots.
Consequence
▪ Although there are still some regulatory and 25%
look for
cultural hurdles to overcome, China offers environmentally
significant potential for the growth of plant- conscious or
based foods as consumers take a greater eco-friendly
foods/drink
interest in products that are healthier, safer,
Image source: YouKuai lower in fat and more environmentally friendly. Passport Edition: 2023
73
Consumers turn to sleep aids in times of stress
74
Millennials most likely to exercise regularly
75
People are concerned about health and safety when out and about
Leverage the power of megatrends to shape your strategy today
Today’s environment of fast-paced change makes it more challenging than ever to keep up with competitors.
Megatrend analysis helps businesses better anticipate market developments and lead both incremental and
The importance of
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For further insight please contact
Jennifer Elster Anna Raje

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@ElsterJennifer
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Head of Practice – Innovation Survey Analyst
Alison.Angus@Euromonitor.com ruta.sventickyte@euromonitor.com
linkedin.com/in/alison-angus linkedin.com/in/ruta-sven
Aistė Kriaučiūnaitė Kristina Balčiauskaitė

Survey Consultant Senior Economies and Consumers Research Manager
Aiste.Kriauciunaite@euromonitor.com Kristina.Balčiauskaite@euromonitor.com
linkedin.com/in/aiste-kriauciunaite linkedin.com/in/balciauskaite
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Reviews shifting consumer traits and values that influence

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Diversity and inclusion

The drivers shaping consumer behaviour

Businesses harness megatrends to renovate, innovate and disrupt

69% 64% 29%

Shenzhen-Jiangmen high-speed railway construction is underway

Image source: Unsplash Passport edition: Consumers 2023ed

Consumers want more flexibility

Shoppers want to see what they buy

Convenience drives e-commerce demand

Meal kits are gaining popularity: especially among Gen X

72% 55% 27%

Ride-hailing service DiDi unveils prototype for autonomous passenger car

Most Chinese regularly order food for delivery

Internet users are highly protective of their personal data

Millennials prefer online anonymity

Friends and family remain the most trusted information source

Consumers expect more face-to-face activity post-pandemic

Diversity and inclusion

25% 15% 70%

Tmall’s senior-led live stream event breaks the traditional mould

Younger generations are vocal in sharing their opinions online

Millennials are most eager to help those in need

Most Chinese feel comfortable expressing their identity

Generation Z Millennials Generation X Baby Boomers

66% 78% 79% 61%

65% 74% 78% 62%

67% 69% 67% 53%

15% 13% 14% 12%

Gen Z pay the most attention to company practice

71% 54% 64%

Chinese are keen to soak up local culture when travelling

More consumers prefer real world than online experiences

65% 60% 61%

Image source: Unsplash Passport edition: 2023

Chinese are keen to cultivate an online persona

Individuals like to stand out from others

67% 24% 66%

Freshippo grows its private label, featuring convenience and premiumisation

Gen X are the most eager for a simpler life

Generation Z Millennials Generation X Baby Boomers

59% 76% 74% 59%

65% 70% 72% 56%

57% 71% 72% 56%

58% 72% 72% 51%

57% 66% 70% 53%

Consumers prioritise nutrition and quality

Food Home Care/Cleaning Products Apparel and Footwear

All natural 22% High quality 22% Comfortable 18%

100% organic 16% Ingredient formulation 16% High performance 14%

Hormone free 12% Hypoallergenic 13% Durable 13%

Discounter HotMaxx announces ambitious expansion plans

Image source: HotMaxx Passport edition: Retailing 2023ed

Consumers are using technology to enhance the shopping experience

Most Chinese feel financially secure despite rising costs

The circular economy has not yet been fully embraced

Gen Z are the most likely to be planning to save money

Frugal purchasing intentions by generation