A new report by Xiaohongshu breaks down the psychology of Chinese shoppers, highlighting the values and influences driving them to the check-out button.
Borders are open, events are back on, and China has finally — finally! — entered its post-pandemic era. However, COVID-19 has left an indelible mark, changing the way Chinese consumers interact with the world around them.
Earlier this month, Xiaohongshu released a report with NielsenIQ that examines the psychology of Chinese consumers. Based on a survey of over 2,000 people in first through sixth-tier cities, the study highlights not only what Chinese netizens are spending on, but the values and motivations driving them to purchase in the first place.
Below, Jing Daily summarizes three key trends to help brands prepare for a reopened and reinvigorated China.
Consumers want to reward themselves, emotionally and rationally
Despite economic difficulties during the pandemic in 2022, the per capita monthly income and monthly expenditure of Xiaohongshu users continued to grow compared with 2021. While the ratio of consumption to income should stay the same, both are expected to “increase significantly” in 2023.
According to the lifestyle platform, Chinese consumers view consumption as an investment in a better life for themselves. As such, product quality is still their top consideration when making a purchase. It saw the biggest year-on-year increase compared to other purchase drivers. However, emotional value comes in at number two, meaning that Xiaohongshu users are willing to pay for goods that go beyond practicality and contribute to their “spiritual pleasure and satisfaction.” Continue to read the full article here