China spreads rational consumption culture. The reason why practicality became important.

[The Guru=Kim Hyung-soo Reporter] The COVID-19 pandemic-induced economic downturn is causing changes in the spending habits of Chinese consumers. There is a growing trend of rational spending in preparation for economic uncertainty, altering shopping patterns.

According to the National Bureau of Statistics of China on the 12th, the total retail sales of consumer goods in China last September amounted to approximately 3.98 trillion yuan (approximately $619.3 billion), an increase of 5.5% compared to the same period last year.

In the second half of this year, the total retail sales of consumer goods in China have been increasing at a single-digit rate compared to the same period last year: 3.1% in June, 2.5% in July, and 4.6% in August. From January to September, the total retail sales of consumer goods in China increased by 6.8% compared to the same period last year, amounting to approximately 34.21 trillion yuan (approximately $5.32 trillion).

Analysts attribute this to a decrease in consumer demand and the spread of rational consumption trends after COVID-19. Chinese consumers are avoiding impulsive purchases and instead prioritizing practical consumption that values quality and cost-effectiveness.

In fact, according to the ‘Post-Corona Era Consumer Psychology Research Report’ released by Chinese social media platform Xiao Hong Shu in March, 29% of respondents said ‘practicality and value are more important than trends’ this year. This figure is up 12 percentage points from 2021 (17%). During the same period, the proportion of respondents who said they ‘prioritize quality over brand’ increased by 4 percentage points, and those who said they ‘satisfy basic needs and only purchase high cost-effective products’ increased by 6 percentage points.

As a result, there are predictions that the consumption market will expand, focusing on essential goods. According to a survey by market research firm DATA100, household goods, convenience foods, and medicines are among the items expected to continue growing.

The Korea Trade-Investment Promotion Agency (KOTRA) Qingdao Trade Center stated, “Consumers are reducing impulsive and blind purchases following trends, and the tendency to make rational purchases through cost-effectiveness comparisons and discount benefits comparisons is strengthening.”