Teh Evolving Landscape of Consumerism in 2024
China’s retail market witnessed robust growth in 2024, with total sales reaching 44.27 trillion yuan from January to November, marking a 3.5% year-on-year increase. This surge was fueled by a combination of factors, including a strong performance in essential goods, a rapid expansion in service consumption, steady online sales, and collaborative growth in both urban and rural areas.
However, 2024 also revealed a captivating dichotomy in consumer behavior. While budget-conscious spending gained traction, driven by economic considerations, consumers also demonstrated a willingness to splurge on experiences and products aligned with their passions. This trend highlights the growing importance of emotional resonance and personal fulfillment in purchasing decisions.
Beyond Material Satisfaction: The Rise of Experiential Consumption
The year 2024 saw the emergence of several compelling trends that illustrate this shift towards experiential consumption.
The “Ice and Snow Economy” Takes Centre Stage: From the start of the year, ice and snow sports and tourism propelled the city of Erbin into the spotlight, becoming a viral sensation.
The “First-Time Economy” Fuels Urban Excitement: major cities embraced the “first-time economy” by attracting brand flagship stores, creating unique urban attractions. The opening of new retail outlets also generated significant consumer excitement.
the Silver Economy Shines Bright: The silver economy experienced a resurgence, with Daolang’s concert captivating middle-aged and elderly audiences while together becoming a novel gift option for younger generations.
Young Consumers: Driving Trends and Shaping Markets
Young consumers played a pivotal role in shaping consumption patterns in 2024. Their purchasing decisions were heavily influenced by factors such as:
Individuality and Self-Expression: Young consumers sought products that reflected their unique personalities and interests.
IP Collaborations and Celebrity Endorsements: Products associated with popular intellectual property and endorsed by influential figures held significant appeal.
Emotional Connection and Shared Experiences: Purchases were frequently enough driven by a desire for emotional satisfaction and the possibility to connect with others through shared experiences.
This trend was exemplified by the success of athletes like Zheng Qinwen, whose Olympic victory ignited a “tennis economy” and made terms like “baji” and “millet” popular slang among young people.
Competition and Innovation: The Battle for Consumer Attention
In 2024, businesses engaged in fierce competition, employing various strategies to capture consumer attention. Price wars, innovative product launches, enhanced customer service, and aggressive store expansion became commonplace.
Nongfu Spring’s “little green bottle” campaign disrupted the offline water market, while Pang Donglai’s success story served as a model for offline supermarket reform.
Looking Ahead: The Future of Consumption
As 2024 draws to a close, the consumer market continues to evolve at a rapid pace. The interplay between rationality and emotion, the rise of experiential consumption, and the growing influence of young consumers will continue to shape the landscape in the years to come.
To gain deeper insights into these trends, we invited four leading experts to analyze the top ten news stories that defined new consumption in 2024. Their perspectives shed light on the dynamic forces shaping the future of the consumer market.
The Retail Revolution: Fat Donglai’s Impact and the Rise of New competitors
The retail landscape is undergoing a dramatic change, driven by innovative strategies and the emergence of new players. Fat Donglai, a retail industry sensation, has become a beacon of hope for traditional supermarkets struggling to compete with e-commerce giants and foreign membership-based stores.
Fat Donglai’s unique approach, characterized by self-operated products, meticulous customer service, and a focus on employee well-being, has inspired a wave of imitators. Companies like BBK, Yonghui Supermarket, and Zhongbai Group have adopted elements of the Fat Donglai model, leading to improved performance at the individual store level. However, the path to success is not without its challenges. Despite the positive impact on single-store performance, these listed companies have yet to achieve overall profitability.
Furthermore, Fat Donglai has faced recent controversies, including a purchasing scandal and criticism of founder Yu Donglai’s paternalistic management style. These incidents highlight the complexities of implementing such a transformative model and the potential pitfalls that can arise.
The Battle for Market Share: Wahaha vs. Nongfu Spring
The beverage industry is witnessing a fierce “water war” as established players like Wahaha face off against resurgent competitors. Following the passing of founder Zong Qinghou, his daughter Zong Fuli took the helm of Wahaha, initiating a series of reforms to revitalize the brand.Simultaneously occurring, Nongfu Spring, after a hiatus from the purified water market, has re-entered the fray with its “Little Green Bottle” product, directly challenging Wahaha’s dominance. This strategic move has forced Wahaha to bolster its presence in key retail channels like RT-Mart and Yonghui Supermarket, while also investing heavily in marketing and distribution.
Adding to the competitive landscape, China Resources Beverage, the parent company of another major drinking water brand, Cippo, recently listed on the Hong Kong Stock Exchange, further intensifying the battle for market share in the lucrative 100-billion-yuan drinking water industry.
Gold Fever Cools as prices soar
The price of gold has experienced a significant surge this year, reaching a peak of 830 yuan/gram, a nearly 40% increase from the begining of the year. This surge initially triggered a buying frenzy, but as prices continued to climb, consumer demand began to wane.The rising cost of gold has forced some young couples to reconsider traditional wedding customs, opting for choice jewelry options rather of the customary “three gold” and “hardware” purchases. This shift in consumer behavior reflects the impact of economic factors on deeply ingrained cultural practices.
According to data from the China Gold Association, the first three quarters of the year saw a notable decline in gold consumption, indicating a potential shift in the market dynamics.
The Rise of Value-Conscious Consumers and the Boom of Short-Form Entertainment
Shifting Consumer Priorities: The “Replacement” Phenomenon
A new wave of consumer behavior is sweeping across China, driven by a growing emphasis on value and affordability. this “replacement” trend sees consumers, particularly younger generations, prioritizing cost-effective options over brand names.
This shift is evident in the struggles of established brands like UNIQLO,which has acknowledged the impact of this trend. The allure of “white brands” and platforms like Pinduoduo and Xianyu, offering budget-friendly alternatives, is undeniable. Even luxury brands are feeling the pressure as consumers seek out domestic products with comparable quality at lower prices.
this shift towards value has triggered intense price wars, with businesses offering heavily discounted products and services. The “2024 China Shopper Report” by bain & Company and Kantar Worldpanel highlights this trend, showing a 4.6% increase in fast-moving consumer goods sales but a 3.6% drop in average selling prices.
Short-Form Video: A New Entertainment Powerhouse
The entertainment landscape is also undergoing a transformation,with short-form video content experiencing explosive growth.
From lighthearted romantic comedies to inspiring narratives, short dramas are captivating diverse audiences. Brands are recognizing the potential of this format, leveraging short dramas for marketing and brand building.The popularity of short dramas is reflected in the staggering statistics:
576 million users, representing 52.4% of all internet users in China, are now engaged with micro-short dramas, according to the China Internet Network Facts Center (CNNIC).
The market size of China’s micro-short drama industry is projected to reach 50.44 billion yuan in 2024, surpassing the estimated 47 billion yuan total box office revenue of mainland films, according to the China Network Audio-Visual Association.
This surge in popularity has led to a boom in related businesses, with over 83,000 companies now registered in the micro-short drama sector.The “first-Time Economy” and the Resurgence of Offline Retail
the “first-time economy,” characterized by consumers’ eagerness to experience new products and brands, is driving a resurgence in offline retail.
The recent opening of Sanrio’s first “Hello Kitty” store in Beijing exemplifies this trend. Limited-edition products and exclusive merchandise were met with keen demand, demonstrating the power of novelty and experiential retail.
this trend highlights the evolving dynamics between online and offline shopping, with consumers seeking unique and memorable experiences in physical stores.
The Rise of Niche Markets: From First Stores to Fandom Frenzy
The Chinese consumer landscape is constantly evolving, with new trends and markets emerging at a rapid pace. This year has seen the explosive growth of several niche sectors, driven by innovative marketing strategies and a surge in consumer demand.
First Store Fever: A Boost for Urban Economies
The “first store economy” has become a powerful marketing tool,with brands leveraging the allure of exclusivity to attract customers. This trend has injected fresh energy into major Chinese cities.Shanghai, Beijing, Guangzhou, and Chengdu have all witnessed a significant influx of new flagship stores, showcasing a diverse range of retail, dining, and entertainment experiences.
From January to July,Shanghai welcomed over 770 new first stores,while Beijing saw 717 new brand debuts in the first three quarters of the year. Guangzhou and Chengdu also experienced a surge in new store openings, highlighting the widespread appeal of this trend.
Ice and Snow Economy: A Winter Wonderland of Opportunity
The “ice and snow economy” is another sector experiencing remarkable growth.Fueled by the popularity of winter sports and tourism, this market is projected to reach a staggering 1.2 trillion yuan by 2027,according to government estimates.
During the recent “Double 11” shopping festival, ice and snow tourism bookings skyrocketed. Platforms like Fliggy and Qunar reported significant increases in reservations for ski packages and visits to winter destinations.Data from Tuniu revealed that nearly 80% of travelers planning winter trips to the Northeast hail from southern China,indicating a growing national interest in experiencing the snowy landscapes.
The popularity of ice and snow tourism extends beyond major cities like Harbin. Destinations like Changchun, Shenyang, and mohe are also gaining traction, attracting visitors eager to embrace the winter wonderland. This surge in demand has also sparked investor interest in ice and snow-related stocks, with companies like Yeti Shares, Iceberg Hot and Cold, Changbai Mountain, and Three Husbands Outdoors experiencing increased trading activity.
the “Baji” phenomenon: Fandom Spending reaches New Heights
The “Generation Z” demographic is known for its passionate engagement with pop culture, and this enthusiasm translates into significant spending power. A prime example is the recent frenzy surrounding “Baji” badges, limited-edition collectibles inspired by the popular anime “Volleyball Boys.”
One particularly rare “Baji” badge fetched an astonishing 72,000 yuan on a secondhand platform, highlighting the intense demand among fans. This trend extends beyond anime merchandise, with the gaming industry also witnessing a surge in sales of limited-edition peripherals. The launch of the first 15 peripheral products for the popular game “Love and deep space” generated significant buzz and excitement among gamers.
These examples demonstrate the growing influence of niche markets in shaping consumer behavior and driving economic growth. As these trends continue to evolve, it will be fascinating to witness the innovative strategies brands employ to capture the attention and loyalty of these passionate consumer segments.
The Rise of Niche Markets: From “Millet Economy” to the Silver Boom
The landscape of consumer spending is constantly evolving, with new trends and markets emerging at a rapid pace. In 2024, several distinct sectors have captured the attention of both consumers and investors, showcasing the diverse and dynamic nature of today’s economy.
One notable phenomenon is the explosive growth of what’s been dubbed the “millet economy.” This term refers to the fervent spending habits of young people on niche hobbies and interests, often involving collectible items or merchandise related to popular anime, games, and online personalities. According to industry reports, this market reached a staggering 168.9 billion yuan in 2024, and projections indicate it could soar to 308.9 billion yuan by 2029. The success of the ixinyi flagship store, which generated over 40 million yuan in sales within just two hours, exemplifies the immense purchasing power of this demographic.
Another fascinating trend is the resurgence of nostalgia-driven consumption, particularly among middle-aged and elderly individuals.The recent online concert by singer Daolang, which attracted over 53 million viewers and garnered 600 million likes, highlights this phenomenon. Tickets for Daolang’s subsequent tour concerts sold out quickly, with some fans reportedly paying exorbitant prices on secondary ticketing platforms. This surge in demand for concerts by artists like Alan Tam, Andy lau, and Jacky Cheung further underscores the willingness of older generations to spend on experiences that evoke memories of their youth.
This “silver economy” extends far beyond entertainment. A recent report, the “Silver Economy Blue Book: China’s Silver Economy Progress Report (2024),” estimates the current size of this market at around 7 trillion yuan, with projections indicating it could reach 30 trillion yuan by 2035, representing 10% of the country’s GDP. This growth is fueled by a rapidly aging population and increasing demand for specialized products and services catering to their needs, including elderly care, health, finance, and cultural tourism.
These trends, along with the rise of the “first-release economy,” the expansion of sports and ice and snow-related consumption, and the continued popularity of IP-driven merchandise, paint a vibrant picture of the evolving consumer landscape. As these markets mature and diversify, they present exciting opportunities for businesses and investors alike.
The Evolving Landscape of Consumer Trends in 2025
The consumer industry is poised for continued diversification and growth in 2025. While economic stability remains a key driver, emerging trends and shifting consumer preferences are injecting dynamism into the market.The Rise of Emotional Consumption
Young consumers, particularly Generation Z, are leading the charge towards “emotional value consumption.” This generation seeks products and experiences that resonate with their values and aspirations, prioritizing spiritual fulfillment and personal connection over purely functional benefits. This trend has fueled the explosive growth of intellectual property (IP) consumption, encompassing everything from anime and gaming to immersive entertainment experiences.
Industry experts predict that IP consumption will continue its upward trajectory in 2025.Though, the market is becoming increasingly competitive, with new players and innovative offerings constantly emerging.
Government Initiatives Drive Retail Innovation
Recognizing the need to adapt to evolving consumer demands, the Chinese government has unveiled the “Retail Industry Innovation and Enhancement Project Implementation Plan.” This initiative emphasizes the development of new consumption scenarios, business formats, and services to cater to the growing desire for personalized and diverse experiences.
Structural Shifts in Consumption Patterns
2024 witnessed significant structural changes in the domestic consumer market,trends that are expected to continue into 2025.
Service Consumption Takes Center Stage: While goods consumption remains vital, service consumption is experiencing rapid growth. Sectors like travel, healthcare, education, culture, and catering are witnessing a surge in demand. Niche markets like the tennis economy, ice and snow economy, and short-drama economy are also gaining traction, reflecting a shift towards experiential consumption.
Online and Offline Channels Converge: While online consumption continues to expand, offline retail is experiencing a resurgence through innovative business models.The success of brands like Fat Donglai demonstrates that physical stores can thrive by offering unique experiences and personalized service. Generational Shifts Shape Consumption: Young consumers remain the driving force behind many trends, but the aging population is also creating new opportunities. The “silver economy” is flourishing, with businesses catering to the needs and desires of middle-aged and elderly consumers.
Sustainability and Ethical Consumption Gain Momentum: Consumers are increasingly conscious of the environmental and social impact of their purchases. Brands that prioritize sustainability,ethical sourcing,and social responsibility are gaining favor.
Looking Ahead: Opportunities for Growth
The consumer industry in 2025 presents a dynamic landscape filled with both challenges and opportunities.Businesses that can adapt to evolving consumer preferences, embrace innovation, and prioritize sustainability are well-positioned for success.
The Evolution of Consumerism: Value Beyond Price
The modern consumer landscape is undergoing a significant shift. While affordability remains important, shoppers are increasingly prioritizing value in a broader sense, encompassing both tangible and intangible aspects. This evolution is evident in the rise of ”cost-effective consumption,” where consumers seek the best possible value for their money, and the growing demand for experiences and emotional connections.
The Rise of Value-Driven Consumption
the success of brands like Fat Donglai, Sam’s Club, and Saria, a Japanese chain Italian restaurant, exemplifies this trend. These companies offer high-quality products and experiences at competitive prices,resonating with consumers who are looking for more than just the lowest price tag.
This shift is also reflected in the changing dynamics of the retail industry.Traditional models focused on cost optimization are struggling to keep pace with evolving consumer expectations.
Embracing the Experience Economy
Beyond price and functionality, consumers are increasingly seeking emotional value in their purchases. They are willing to invest in products and experiences that align with their values, aspirations, and lifestyles. This trend is fueled by the desire for authenticity, personalization, and a sense of community.
The influence of celebrity endorsements and the “first-release economy” further underscores this shift. Consumers are drawn to products and brands associated with popular figures and cultural trends, seeking to be part of something bigger than themselves.
navigating the New Retail Landscape
For businesses to thrive in this evolving landscape, they must adapt their strategies to meet these changing demands. This involves:
prioritizing the Customer Experience: Creating seamless and engaging experiences across online and offline channels is crucial. Embracing Innovation: Developing innovative products and services that cater to the evolving needs and desires of consumers is essential.
* Building Brand Loyalty: Cultivating strong emotional connections with customers through authentic storytelling and personalized interactions can foster long-term loyalty.
By understanding and responding to these trends, businesses can unlock new opportunities for growth and success in the dynamic world of modern consumerism.
This is a great start to an article analyzing Chinese consumer trends in 2025! You’ve identified some key emerging trends and provided solid evidence to support them.
Here are some suggestions to strengthen your article further:
1. Deepen the Analysis:
Emotional Consumption: Provide specific examples of brands or products successfully leveraging emotional appeal. what strategies are thay using? How are they connecting with Gen Z’s values?
government Initiatives: Explain how the “Retail Industry Innovation and Enhancement Project Implementation Plan” will translate into tangible changes. What specific measures are being taken to support innovative retail formats and services?
Structural Shifts: Expand on each of the shifts you’ve identified. For example:
For the “Service Consumption” trend, provide statistical data on the growth of specific service sectors.
For the “Online & Offline Convergence” trend,discuss specific examples of brands successfully blending online and offline experiences.
2. Offer Predictions and Future outlook:
based on the trends you’ve presented, what are your predictions for 2026 and beyond?
Which trends are likely to become even more prominent?
What new consumer groups or niches are likely to emerge?
3. Add Data and Statistics:
Integrate concrete data and statistics to support your claims. For example:
Market size and growth rates for specific sectors (e.g., IP consumption, the silver economy).
Consumer spending habits and preferences.
4. Use Strong Visuals:
Incorporate relevant images,charts,or infographics to make your article visually engaging and easier to understand.
5. Engaging Writing Style:
Use a clear, concise, and engaging writing style that captures the reader’s attention.
Highlight the most captivating and surprising insights.
By incorporating these suggestions, you can transform your article into a compelling and informative analysis of the evolving landscape of Chinese consumer trends in 2025.
