Consumer Insights Focus Group Quarterly Update - Q2 2014

Published on 2014-06-17

Recent findings from Mintel, a leading research and information consulting business, have highlighted a number of key market sectors which are enjoying China success.

By David King, Managing Partner, iris Concise

CI
The Consumer Insights Focus Group gathers and shares emerging trends, insights, and best practice to help inform the China marketing strategies of our member organisations. The Group also aims to provide a platform for members to share their learnings or to raise issues that may be of interest to other members or to the UK trade bodies.

2014 is shaping up to be another interesting year of emerging trends and rapid growth increasingly driven by consumer spending. Recent findings from Mintel, a leading research and information consulting business, have highlighted a number of key market sectors which are enjoying China success:

Whilst still in its infancy, the Men’s Personal Care market is growing fast, with facial products for men growing at nearly three times the rate of women’s products. It seems that the modern Chinese man is now more willing to spend money on his personal appearance.

Healthy/organic restaurants continue to grow, but the rest of the restaurant sector remains largely flat. But that does not mean that consumers are not enjoying good food anymore – they may simply be upgrading their home consumption. Nearly half of urban Chinese consumers surveyed by Mintel said they were spending more year-on-year on food to be consumed in the home.

Higher-premium foods are attracting attention as Chinese consumers develop their taste for new products. Western foods such as bread, croissants, cheese, pasta and chocolate are leading the charge.

Personal consumption of alcohol appears to now be driving the growth in this sector, with lower and middle tier drinks replacing the high-end spirits and wine which were victims of the recent gifting and Government spending clampdown. In-home consumption of spirits is also emerging, when previously this was largely unheard of in China.

These trends support the view that, whilst saving remains the top priority of China’s Urban Middle Classes, increasing levels of disposable income mean more money for personal expenditure. These consumers are seeking a greater range of products as their changing lifestyles put them into contact with new ideas. As marketers, we need to ensure that we are equipped to anticipate and meet this demand.

Learn more about the Consumer Insights Focus Group>>