CHINA. Marketing and digital strategist China Skinny has highlighted the likelihood of a rejuvenation of Chinese spending as the COVID-19 crisis continues to ease.
Writing in this week’s newsletter edition, China Skinny notes: “The situation continues to improve in China with no new cases outside of Hubei Province for two days on Monday and the lowest infection rates in China since 20 January.
President Xi Jinping visited Wuhan yesterday in a major show of confidence that China has turned the corner on the coronavirus.
“Mid last week, President Xi chaired a meeting focusing on China stabilising economic and social development. The meeting underscored ‘unleashing consumption that had been suppressed by the outbreak and strengthening new and upgraded consumption to compensate the lost consumption on goods and services during the outbreak’.”
This focus is good news for brands selling in China, China Skinny argues. “Beijing is likely to have supportive regulations that will stoke consumer spending, with many predicting large stimulus measures to help push things along.”
When consumer spending returns to normal, it is unlikely that behaviour will revert back to exactly the way things were, however, it cautioned. “Chinese consumers have been through a lot since late January. The unprecedented measures to contain the virus, the uncertainty and weeks spent just in their homes have provided many consumers with time to reflect and also altered behaviours – some which may stick.”
Two main threads of consumer behaviour will emerge, China Skinny reckons. “The first will be those who have had a bad case of cabin fever, cooped up in the apartment, and will embrace the newfound freedom – dining out more, travelling more, and being more social than ever.
“The other group will be those who have become more connected to their homes: the home cooking, the family time, the in-home fitness regimes. These consumers will spend more on making their homes special, purchasing new smart appliances, furniture and even art.”
