Chinese consumers remain cautious on spending, chase bargains and discounts amid slowing economy: study
- The average selling price of FMCG products in mainland China fell 0.8 per cent year on year in the first quarter, according to a study by Bain & Co and Kantar Worldpanel
- The price deflationary trend, which started in 2020, persisted in the first quarter of 2023, but became more divergent across categories, Kantar’s Jason Yu said
The report showed that the average selling price of fast-moving consumer goods (FMCG) in mainland China fell 0.8 per cent year on year in the first quarter, after Beijing shifted from its zero-Covid strategy to living with the virus.
The total spend on consumer goods grew 1.9 per cent while volumes inched up by 2.7 per cent, the report showed, without revealing absolute numbers.
“The price deflationary trend, which started in 2020, persisted in the first quarter of 2023, but became more divergent across categories,” Jason Yu, managing director of Kantar in Greater China, told a media briefing on Tuesday.
27:15
274 million Chinese take a holiday: why ‘golden week’ 2023 was different
China’s reopening of its economy after three years of strict pandemic curbs in January had heightened hopes for a quick recovery in domestic consumption. However, mainland consumers, unnerved by worries about job prospects and income growth, reined in their spending, resulting in consumer goods makers from bottled water producers to facial tissue makers struggling to drive up sales.
Bruno Lannes, a partner at Bain in Shanghai, warned that it would take time until retail sales growth picks up.