Report highlights new consumption trends of daily goods

New consumption trends have emerged in China as Chinese consumers pursue a higher quality of life, according to a report released by the Special Committee of Consumer Goods for Daily Use, part of the enterprise alliance at the China International Import Expo.

The report stated that China has become the second-largest consumer market in the world because of factors such as increasing disposable incomes, increasing consumer demand, increasing supply of goods and services, expansion of consumption scale and upgrading of the consumption structure.

Since 2012, consumption has overtaken production to become the main engine of economic growth in China, contributing about 60 percent to the country’s economic growth in recent years.

The consumption needs of the Chinese have since changed from survival to development and enjoyment. One indicator of this is the reduction in material consumption and the increase in spiritual and cultural consumption.

According to the data from the National Bureau of Statistics, service expenditure accounted for 45.9 percent of the annual per capita consumption expenditure of the whole country, an increase of 1.7 percentage points over the previous year. In 2016, per capita expenditure on culture and entertainment in China was 800 yuan ($122.4). In 2019, the figure surged to 2,513 yuan.

The scale of China’s cosmetics market has also increased every year from 2017 to 2019, reaching $55.6 billion, $59.6 billion, and $67.0 billion respectively, according to the report.

In light of the growing demands of consumption upgrade, many traditional domestic brands have been upgrading themselves and creating new products compatible with those offered by multinational enterprises and brands, the report stated.

As more and more new products, models and ideas have stimulated Chinese consumers’ desire for a better life, the CIIE has become an important platform. As the first national expo themed around import, the CIIE introduces the world’s top consumer goods, services and values to China, and promotes the upgrading and transformation of domestic consumption structure. The expo is also a catalyst for introducing new products and manufacturing innovative products, according to the report.

In terms of consumer enterprises, the report stated that improving people's lives should be their main mission. These companies should also focus on producing high-quality products, establishing a unique image and positive values, and using sincere, transparent and friendly approaches to communicate with the public.

The Special Committee of Consumer Goods for Daily Use, which is chaired by L’Oreal and consists of six other members, namely Unilever, Procter & Gamble, Estee Lauder, Shisheido, Merries and Amore Pacific, was established in September to enhance collaboration in the sector for innovations to better serve Chinese consumers’ growing needs for a better life.

Source: China International Import Expo Bureau