Chinese consumers spend more on essentials like oyster sauce but cut down on wine as they tighten spending amid slowing economy
- Average price of fast-moving consumer goods in the first nine months of this year on the mainland increased 3.7 per cent, much slower than the 4.6 per cent a year earlier, according to China Shopper Reporter 2019
- Sales of oyster sauce jumps 30 per cent, while that of wine falls 3 per cent
Chinese consumers are buying fewer expensive items amid an economic slowdown and trade war with the United States.
The average price of fast-moving consumer goods (FMCG) in the first nine months of this year on the mainland increased 3.7 per cent, much slower than the 4.6 per cent in the same period last year, according to China Shopper Reporter 2019 released jointly by US consulting firm Bain & Company and Spanish consumer insights provider Kantar WorldPanel.
“Sellers are under a lot of pressure to stimulate demand and to lure buyers, and so we see a lot of discounts and promotions. As a result the average price increase is much slower than previous years, and more significantly it is taking care of the inflation rate,” said Jason Yu, general manager of Kantar Worldpanel Greater China.
Still “China continues to be the biggest consumer story in the world,” said Derek Deng, partner with Bain & Company.
China’s consumer price index, a key measure of inflation, rose to 3.8 per cent in October from 3 per cent in September, nearly the same as the average selling price growth seen in the joint report.
The report showed that wine sales in the first nine months dropped 3 per cent. Sales of butter too fell by the same extent, while leather care products plunged 10 per cent.
