By. Figure 2: Summary of key economic indicators, China, January-December 2020. 2020 Asian Consumer Trends | Deloitte Insights The incremental growth of $2.3 trillion alone over the next five years would be comparable to adding a consumer market 1.3 times larger than that of today's Germany or UK. China's total retail sales of consumer goods in the first half of 2020 declined by 11.4% year on year to 17.2 trillion yuan, according to National Bureau of Statistics. Travel. Chinese mobile app spending and usage is expected to increase 23 percent to $380 billion in 2020. Over 76 percent of Chinese consumers increased their consumption of locally branded products in the last year, and 90 percent of them have a positive perception of local brands. Effect of COVID-19 on U.S. consumer spending on Chinese goods March 2020, by age; Russians' travel spending plans during COVID-19 2020, by category; Change in personal spending in physical stores due to COVID-19 crisis in Sweden 2020; U.S. consumer spending on goods made outside of the USA March 2020, by gender Xi tried to reassure foreign companies that a focus on domestic . Effect of COVID-19 on U.S. consumer spending on Chinese goods March 2020, by age; Russians' travel spending plans during COVID-19 2020, by category; Change in personal spending in physical stores due to COVID-19 crisis in Sweden 2020; U.S. consumer spending on goods made outside of the USA March 2020, by gender This equates to a decline from $5.283 trillion in 2019 to $5.130 trillion in 2020. In 2020, per capita consumer spending in Shanghai . We do not claim to paint a complete picture of the 2020 consumer. And yet, overall spending across the luxury industry could shrink by as much as 45 percent through 2020, as other regions and countries - Europe and the U.S. among them - continue to feel the . Of the Chinese economy's 6.5% year-on-year (y/y) growth in the fourth quarter of 2020, nearly 40% came from final consumption. 1. Young, free-spending consumers in lower tier cities are today's growth engine. Consumers are adapting spending to changes in income. Services consumption dropped significantly in the first quarter of 2020, but spending on necessities, such as food and accommodation, continued to rise. As indicated above, the total of all consumer spending has almost completely bounced back since the pandemic took hold, with total spending as of 12/6/2020 down only 1.7% from the pre-pandemic levels in January 2020. Consumer Spending in China increased to 387176.10 CNY HML in 2020 from 385895.60 CNY HML in 2019. Meanwhile, household savings grew. China's retail sales continued a general recovery in October, official data showed Monday, on the back of a national holiday and policies aimed at boosting spending. It surged . The retail sales of consumer goods went up 5 percent year on year to 3.95 trillion yuan . After the boom in adoption and spending for both mobile games and non-game apps in 2020, market trends began normalizing in 2021 as worldwide consumer spending is projected to reach approximately $133 billion on in-app purchases, premium apps, and subscriptions across the App Store and Google Play . China consumer report 2020 5 This important set of consumers is unaffected by slowing growth and rising living costs and has an outsized impact on spending growth. China consumer spending . That figure is also up from Morgan Stanley . In the last quarter of 2020, internet advertising spending in the automobile brand industry in China grew by 23.1 percent compared to the same quarter in the year prior, showing a sign of recovery. Read in app. Coronavirus: Over 20 million Americans have now applied for unemployment benefit. Yihan Ma. The articles within aim to provide consumer and retail companies with the insights necessary to thrive in this challenging environment. Per capita consumer spending in Beijing, China 2020, by type. 2020 Updated July 15, . Consumer Spending in China averaged 59232 CNY HML from 1952 until 2020, reaching an all time high of 387176.10 CNY HML in 2020 and a record low of 453 CNY HML in 1952. The statistic shows the growth rate of consumer spending on fast moving consumer goods (FMCG) in China in the first quarter of 2021, compared to the same quarter of the previous year. Nevertheless consumer confidence has been shaken and there is growing uncertainty about the global economic climate after COVID-19. Published by C. Textor , Jun 14, 2021. China is showing once again that a fast economic rebound is possible when the virus is brought firmly under . Consumer spending up during national holiday 0 Comment(s) Print E-mail China Daily, October 5, 2020 Adjust font size: Consumers shop at a duty-free store in Haikou, capital of South China's Hainan . Aug. 19, 2020 1:00 pm ET . Figure 16: Monthly growth of total retail sales of consumer goods and foodservice in China, March 2018-July 2020 Overview Executive Summary COVID-19 China Context State of the Economy Report Price:£3302.97 | $4460.00 | €3717.16 Consumer Spending Sentiment - Q2 - China - August 2020 China says its economy grew 2.3% in 2020, but consumer spending fell Published Sun, Jan 17 2021 8:45 PM EST Updated Sun, Jan 17 2021 11:51 PM EST Evelyn Cheng @chengevelyn Save as Image. China Consumer Spending Outlook 2019-2024. Meanwhile, household savings grew. Consumer spending in emerging market powerhouses China and India is expected to triple by 2020 to a combined $10 trillion a year, potentially helping to boost economic growth and corporate profits . Until it can be solved, the country's growth — and, by extension . China is the only major economy to have grown last year, but a wide income gap is leading to an unbalanced recovery. On April 19, the city of Wuhan in Hubei province began issuing vouchers to spur consumer spending and support the resumption of work. A large majority of consumers say they are seeking a healthier lifestyle, which presents For more information contact Corporate Strategy & Insights at marketinformation@cottoninc.com. Consumer spending on consumer foodservice was already in decline prior to the Coronavirus (COVID-19) pandemic in Hong Kong, China in 2019. Due to the coronavirus outbreak, the online ad spending of the car brand industry recorded a 4.4 percent year-on-year decrease in the quarter ends . As the first in and the first out of the pandemic, China's economy has staged a dramatic recovery this year. 39% - Heightened sanitation of all surfaces and clothing. Figure 1: Short, medium and long term impact of COVID-19 on consumer spending sentiment, December 2020. Even consumer spending is finally recovering. China consumer quarterly: Q1 2020. In 2020, per capita consumer spending of residents in Beijing municipality in China amounted to around 38,900 yuan on average. Global Consumer Spending in Mobile Apps Reached $133 Billion in 2021, Up Nearly 20% from 2020. By 2030, China's private consumption is set to reach $12.7 trillion, about the same amount that American consumers currently spend, the report said. Canada consumer spending for 2017 was $956.18B, a 7% increase from 2016. In the beginning of 2020, about 24.5 percent of the Douyin's live streaming users spent more than 1,000 yuan online, while the number fell to 19 percent among non-live streaming users. How did the pandemic affect global consumer spending? The full-year 2020 . Contactless delivery is the new norm. How quickly China's economy can return to growth depends much on domestic consumer spending, which already accounts for 60% of its GDP growth by 2019. We forecast that retail sales will contract by 8% in 2020 as a whole. Health Spending: We project consumer spending on health to expand by 3% in 2020, a revision up on our pre-coronavirus 2020 forecast of 1.7% and on 2019's growth of 1.5%. This statistic depicts the annual per capita consumer spending of Shanghai residents from 2011 to 2020. BEIJING, Dec. 15 (Xinhua) -- China's consumer spending continued to gather steam in November, solidifying its role as a key growth engine amid the economic recovery, official data showed Tuesday. The dollar reached an almost five-year high of 115.50 against the Japanese yen after data showed that U.S. consumer spending increased more than expected in October, while price pressures also . Updated: November 23, 2020 After months of lockdown and social distancing as a result of COVID-19, consumers have been forced to shop differently — reprioritizing what is essential and swapping the checkout line for online shopping more than ever before. Figure 4: Changes in source of income after COVID-19, May 2020. Global Consumer Spending Market Size, Share, Growth Survey 2020 to 2024 and Industry Analysis Report 03-17-2020 10:49 AM CET | Business, Economy, Finances, Banking & Insurance Press release from . China's consumer spending gains steam to underpin growth. CIW annual subscribers can download the report here. Have consumer spending habits changed for good as a result of the COVID-19 pandemic? Research firm QuestMobile observed that each user spent an average of 6.2 hours per day on mobile devices from January to the end of November last year. Published by C. Textor , Nov 15, 2021. 1 The latest survey, carried out in 2011, gauged Chinese consumers' attitudes and spending The displayed data on spending money on video games shows results of the Statista Global Consumer Survey conducted in China in 2020. November 05, 2020 Xi Sells China as 'Market for the World,' But Concerns Linger By Shannon Tiezzi. Some 28 percent of respondents stated that they had not spent money on video games in the past 12 months. This page provides - China Consumer Spending - actual values, historical data, forecast, chart, statistics, economic calendar and . In the long run, China's total consumer spending is expected to return to its pre-covid-19 level in 2021 and continue to grow at a compound annual growth rate of 7.3% from 2021 to 2024. China's consumer economy is projected to expand by about half, to $6.5 trillion, by 2020—even if annual real GDP growth cools to 5.5%, below the official target. Slower income growth and labor market strains, in turn, have slowed the pace of growth in consumer spending. One measure being taken by local officials to boost spending is to issue low-value digital coupons that can be used for . China's KOL trend is still booming, and it has become most relevant for luxury fashion and beauty markets of all consumer trends in the report. That year, household product brands saw the highest increase in the elevator LCD ad expenditure. Figure 3: Growth rate of retail sales, by key sector, 2019-July 2020. The 21st Century China Center at UC San Diego School of Global Policy and Strategy launched an . Following years of growth, ICT spending will remain relatively flat in 2020 due to the COVID-19 pandemic. Pandemic: Travel spending is down by 57%, according to October 2020 numbers from Status Money. While China's consumer spending is expected to grow 55 percent from 2015 to 2020, consumer spending in the U.S.—the mother of all consumer cultures—will expand by 21 percent over the same period. This allows us to observe consumer spending behavior from the initial incubation phase of the crisis. Figure 2: Monthly growth of total retail sales of consumer goods and foodservice in China, March 2018-July 2020. In comparison, only 19 percent of respondents spent that amount on children's snacks. While traditional ICT spending is forecast to broadly track GDP growth over the next decade, the overall industry will be catapulted back to growth of more than 2x GDP as new technologies begin to account for a larger share of the market. For a deeper dive on the findings, download the full report from which this article is extracted, China consumer report 2020, in Chinese (PDF-5.5MB) or in English (PDF-4.0MB). For more information contact Corporate Strategy & Insights at marketinformation@cottoninc.com. As China eases out of coronavirus-induced travel restrictions and as shops and restaurants begin to reopen, local governments are pushing to get consumer spending—which makes up nearly 60% of . But by and large, consumer spending is down, and here are some of the major industry drops. . A survey conducted in China in spring of 2020 revealed that approximately 43 percent of respondents spent on average between 501 and 1,000 yuan on infant milk powder monthly. In 2020, the year-on-year growth rate of elevator LCD ad spending bounced back from 2.4 percent in the previous year to 23.8 percent in China. Impact of COVID-19 on consumer spending. China consumer spending for 2016 was $4,344.47B, a 3.98% increase from 2015. China consumer spending for 2017 was $4,744.77B, a 9.21% increase from 2016. We are expecting that in light of the health crisis in Italy, consumers will be seeking to purchase greater levels of masks, hand sanitisers, and other consumer health . Consumer Spending in China increased to 387176.10 CNY HML in 2020 from 385895.60 CNY HML in 2019. The post-'90s consumers spend 25,000 RMB a year on . Grocery shows the highest growth across all categories. By 2030, the spending share of India's middle class is projected to reach over 80%. Fitch Ratings-Shanghai-05 November 2020: China's consumer and retail market is likely to finish the year with a strong 4Q20, underpinned by a faster recovery in the offline segment and a boost to consumer spending from the upcoming 'Double 11' shopping festival in November, says Fitch Ratings. In 2020, residents in Beijing municipality in China annually spent on average around 15,700 . Many Chinese apartment complexes stopped allowing . Download Historical Data. Strong recovery is observed. 8 Strategic segments of China's online consumers. Xinyuan Real Estate (NYSE:XIN) reported financial results for the third quarter ending September 30, 2020. Strong consumer spending is the main reason the GDP growth rate has been within a healthy range of 2% to 3% since the Great Recession (not counting the pandemic induced short recession in 2020). Total revenues increased 31.7% to approximately $655.4 million versus $497.6 million in . China consumer spending for 2019 was $5,604.60B, a 4.71% increase from 2018. In 2018, the number of elderly tourists in China grew to approximately 1 billion, accounting for 20% of total tourists. China's Weak Consumer Recovery Is Bad for China—And World Trade. Although China has largely brought the coronavirus under control, spending has been slower to recover as the world still grapples with the impact of the pandemic. In this paper, we examine consumer spending responses to the onset and spread of COVID-19, and subsequent government imposed lockdown in Great Britain, GB (England, Scotland, Wales). David Michael. In 2018, China's post-80s accounted for more than half the total spending on luxury. 0 Comment(s) Print E-mail China.org.cn, April 21, 2020 . spending has risen to approximately RMB6,500 (about USD 920), which is 20% more than spending on tours unaccompanied by an elderly parent. Coresight Research's monthly reports keep you up to date on retail sales (in total and by sector) and key consumer indicators, focusing on the US, the UK and China: Leading Indicators of US Retail Sales —We track several major macroeconomic indicators and their likely effect on US retail sales. So although all consumers will increase their spending, the gaps between different income groups will widen significantly. Some . Along with the property market, consumption is one of two areas . Figure 3: Characteristics of tourism by China's elderly (1) Expansion in scale. Our sample period spans January 1st 2020 to 18th June 2020. In China, consumer spending has failed to recover even as industrial . Oxford Economics' forecasts for 2020 is a mixed bag—while real incomes are expected to grow faster year on year in countries such as India and Indonesia, they will likely not in China, Japan, and South Korea (figure 2). Forecast Overview. China's consumer market has staged a remarkable recovery from the coronavirus downturn. China's slowing GDP and the trade dispute with the U.S. have injected a cloud of uncertainty into the Chinese economy. Forecast average digital spending person for 2020 is $172, expected to increase 3.5x to $429. By contrast, we now estimate that China's retail market will decline by 2.9% in 2020, which is relatively close to our Q2 estimate that spending would decline by 4.0% this year. China's wide income gap holds back consumer spending. Rather, this report points to those traits likely to influence the way companies ride the next wave of growth in China's consumer market. Beyond impacting some of the factors that determine consumer spend—such as consumer confidence, unemployment levels, or the cost of living—the COVID-19 pandemic has also drastically altered how and where consumers choose to spend their hard-earned cash. China consumer spending for 2018 was $5,352.55B, a 12.81% increase from 2017. Forecast GMV for 2020 is $53 billion, expected to increase 2.8x to $147 billion in 2025. The luxury goods market in mainland China saw a significant boost in consumer spending in 2020. Figure 3: Monthly growth of total retail sales of consumer goods in China, March 2018-December 2020. Stark disparities in standards of living are emerging in China. China Consumer 2020: The rise of the "Young Free Spenders". China became one of the fastest growing markets in terms of mobile usage last year. Southeast Asian digital consumer purchase an average of 5.1 categories, up 40% from 2019. 5 PwC Global Consumer Insights Survey 2020 Figure 2 Spending outlook shifts as job losses mount Question, 2019: In terms of your personal spend for the next 12 months, do you expect to… Note [before COVID-19]: 4% of those who said 'spend less' said they are already holding back spending. Get in touch with us now. Canada consumer spending for 2018 was $997.67B, a 4.34% increase from 2017. 3% stated 'don't know.' Base: 19,098 , Oct 21, 2020. US Consumer Spending in 2020. Canada consumer spending for 2020 was $943.72B, a 6.19% decline from 2019. China consumer quarterly: Q1 2020. COVID-19's Impact on Chinese Consumer Behavior and Business Strategy. These figures will jump to $3,000, $6,000, and $21,000, respectively, by 2020. The middle class spending share in India is currently over 70%. Chinese consumers are spending again—but they remain wary of restaurants. Research showed that China delivered more than half the global growth in luxury spending between 2012-18, and is expected to deliver 65 percent of the world's additional spending heading into 2025. In keeping with the BEIJING — Sluggish consumer spending has dragged down China's economy since the pandemic, with little relief in sight for 2022. Consumer spending made up about 58% of the country's GDP growth in 2019. Due to the Covid-19 pandemic, in 2020, the global consumer class** shrank for the first time in half a century. Matthew C. Klein. Consumer Spending in China averaged 59232 CNY HML from 1952 until 2020, reaching an all time high of 387176.10 CNY HML in 2020 and a record low of 453 CNY HML in 1952. , Dec 17, 2020. Along with the property market, consumption is one of two areas . This was a result of the weak economic performance due to the global slowdown linked to the US-China trade war, with fears of an impending recession, along with social unrest that rocked the city during the . Respectively 47.9 percent and 46.7 percent of the live streaming users and non-live streaming users spent between 200 yuan and 1,000 yuan in online . Get in touch with us now. China, the world's second-largest economy and a key driver of the global growth engine, has a big problem with its spenders. The retail market will recover moderately in the . Our report examines the four factors that powered this increased growth rate and that will continue to offer opportunities for China's luxury brands. Source: Cotton Incorporated's COVID-19 Consumer Response Survey, a survey of 500 consumers in China conducted on 3/20-30/2020 (Wave 1), 4/27-5/3, 2020 (Wave 2), 9/10-17/2020 (Wave 3). Overall, COVID-19 has left the typical Chinese consumer with more of a safety mindset, and spending patterns in the near future will likely be closer to home. . About the author(s) Johnny Ho is a consultant in McKinsey's Shanghai office, where Felix Poh is a partner; Jia Zhou is an associate partner in the Beijing office . Research Manager Consumer & Business Insights. We forecast that retail sales will contract by 8% in 2020 as a whole. The retail market will recover moderately in the . These five below are some consumer habits that could stick post-lockdown and proliferate globally. Pre-Pandemic: The average family spent $2,037 on their summer vacation in 2019, according to an Allianz Insurance survey. While this remains well below consumption's 60% average growth contribution in the three years prior to the COVID-19 pandemic . Canada consumer spending for 2019 was $1,005.96B, a 0.83% increase from 2018. BEIJING — Sluggish consumer spending has dragged down China's economy since the pandemic, with little relief in sight for 2022. As the table below shows, consumer spending has remained close to that healthy range since 2010, following the financial crisis. Source: Cotton Incorporated's COVID-19 Consumer Response Survey, a survey of 500 consumers in China conducted on 3/20-30/2020 (Wave 1), 4/27-5/3, 2020 (Wave 2), 9/10-17/2020 (Wave 3). 6 China consumer report 2021 This special edition of the China Consumer Report provides perspectives on the trends that are defining the 'next normal' in post-pandemic China. 39% - Heightened sanitation of all surfaces and clothing. Services consumption dropped significantly in the first quarter of 2020, but spending on necessities, such as food and accommodation, continued to rise. This page provides - China Consumer Spending - actual values, historical data, forecast, chart, statistics, economic calendar and . Monthly Reports. 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