More than 75% of Chinese consumers have decreased their spending on clothing and footwearing by 45% in the first quarter, Oliver Wyman’s latest survey said. In 2020, this could lead to a 15% decline. Consumer spending in the second half of the year is possibly returning to its 2019 level.
The survey also noted a marked difference between the buying behavior of higher and lower income groups. More than 60 per cent respondents from the lower income groups preferred buying essentials only. On the other hand, the respondents from the high-income group said they would trade up and go for both value and quality, with 54 per cent of them saying they would still look to buy products offering higher quality and functionality.
Nonetheless, both groups share the importance of goods which offered value for money. In addition, over 70 % of respondents with lower incomes and 56% of respondents with high income said that they prefer products with value for money. The company predicts that in 2020 online channels will occupy up to half the market as a whole, which is up from 34% in 2019. Although high-income shoppers typically tend to shop in shops for clothing and accessories, 64 percent show more online shopping.
