Emerging Consumer Trends: New Opportunities Ahead

 

Since the beginning of this year, sales of new energy vehicles and smart home appliances have surged, accompanied by the growth of live commerce and instant retail... The new consumption patterns characterized by digitalization, sustainability, and health are thriving in both urban and rural areas, continuously expanding the consumption landscape and enriching its connotation.

China, the most promising market in the world, is consistently unleashing its vitality.

The consumer market is rich with "new" meaning.

On November 20, Zhang Xian, a resident of Shenzhen who had been using traditional mechanical door locks for over a decade, received the latest Xiaomi smart lock purchased online during the "Double Eleven" shopping festival. Thanks to the palm recognition technology developed by Tencent, Zhang Xian simply needs to wave his hand for the lock to automatically open. In just two months, the cumulative sales of this new series of smart locks have surpassed 35,000 units.

This small door lock exemplifies the tremendous potential in the consumption of smart appliances. According to the National Bureau of Statistics, the retail sales of smart home appliances maintained double-digit growth in October. He Yongqian, spokesperson for the Ministry of Commerce, introduced that in early November, sales of energy-saving washing and drying machines, fresh air conditioners, smart vacuum cleaners, water-saving dishwashers, and action cameras of some companies saw year-on-year growth of more than 100%.

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The popularity of smart home appliances vividly reflects the vigor of new types of consumption in China.

What constitutes new consumption?

The new categories of consumption have been specified as digital consumption, green consumption, and health consumption, establishing the fundamental scope of new consumption.

According to Guo Liyan, deputy director of the Economic Research Institute of the National Development and Reform Commission, new consumption refers to consumption behaviors and modes formed based on new technologies and new business forms; from a product standpoint, it mainly includes smart home appliances, new energy vehicles, and other products that embody digital, green, and health-oriented consumption; from a business model perspective, it is primarily reflected in instant retail, live streaming sales, and other new consumption formats.

New energy vehicles serve as an important window for observing new consumption. Data from the China Association of Automobile Manufacturers shows that in the first ten months, the production and sales of new energy vehicles in China grew by 33% and 33.9% year-on-year, significantly outpacing the 1.9% and 2.7% growth rates of conventional vehicle production and sales during the same period.

These days, putting goji berries in thermos cups is no longer just a middle-aged person's trend; younger individuals are also developing a fondness for health-preserving tea drinks. A new consumer market centered around health is emerging among young people.

“This summer, the sales of herbal teas as substitutes for traditional teas grew by 30%, with a notable increase in consumption among young people,” said a representative from Fanghuichuntang, a longstanding brand. Data from Meituan shows that since December last year, the search volume for traditional Chinese medicine therapy has more than doubled year-on-year; among users searching for "traditional Chinese medicine therapy," over 70% are aged between 20 and 35.

Looking at this year's consumption trends, the positive momentum of new consumption is distinctly evident:

Sales of smart electronic products like AI smart glasses, AI speakers, and action cameras keep breaking new records; the first domestically produced AAA game "Black Myth: Wukong" has attracted attention to various scenic spots in Shanxi, while experiencing VR immersive interaction projects has become a standard part of travel for many young people...

“New consumption represents the direction of consumption upgrade, better meeting people's high-quality life demands and stimulating latent consumption potential,” Guo Liyan remarked.

The acceleration of new consumption formats.

Traditionally, consumer models are often limited to offline physical stores or online e-commerce platforms; however, new consumption is breaking these boundaries by achieving seamless integration of online and offline shopping. New consumption formats, represented by instant retail and live streaming commerce, are reshaping the consumption structure and promoting industrial upgrading.

Recently, the consumer brand Miniso announced plans to launch over 800 "24H Super Stores" in Meituan within the year, strengthening its instant retail business. Since opening its first store in January, Miniso has established approximately 500 "24H Super Stores," achieving cumulative sales exceeding 100 million yuan.

What is instant retail?

To illustrate using clothing: 30 years ago, we had to choose items in stores; 20 years ago, we could place an order online with one click and receive items at home days later; today, we can still place an order with one click and receive the product within 30 minutes to an hour, which exemplifies instant retail. Since the beginning of this year, retailers like Miniso and Watsons have been increasing their investment in instant retail.

In the vast rural markets, instant retail is continuously unleashing its vitality.

In March last year, Lin Zhiwei and his wife opened the first 24-hour online supermarket in Boluo County, Guangdong. “Residents in county cities have increasingly higher demands for quality of life; to retain consumers, we must excel in this new instant retail business,” Lin Zhiwei stated. Data from Meituan indicates that in the first eight months of this year, the volume of instant retail orders in decentralized markets like county areas grew by 54% year-on-year.

In China, there are no small "markets"; immense new growth potential lies within the fragmented markets of new consumption. As one of the new consumption formats, live streaming e-commerce continues to enjoy rapid growth from last year.

“On 'Double Eleven,' the total sales of domestic products exceeded ten million, among which the hot-selling third-generation Yuru cream from Shanghai's local brand Shuangmei sold out completely in just three seconds after its launch,” said Wei Yinghui, deputy general manager of Meiwang (Shanghai) Network Technology Co., Ltd.

Data from Douyin E-commerce shows that from October 8 to November 11, over 33,000 brands saw their transaction volume double year-on-year, while nearly 17,000 brands had transaction growth rates exceeding 500%, with over 2,000 individual products surpassing one million yuan in sales.

Consumption formats are rapidly advancing towards “new.” According to the National Bureau of Statistics, in the first ten months, online retail sales of physical goods increased by 8.3% year-on-year; among units above designated size, convenience stores engaging in instant retail saw a year-on-year sales increase of 4.7%, exceeding the 3.5% growth rate of total retail sales of consumer goods during the same period.

New consumption holds vast potential

Industry experts indicate that new consumption is an important direction for the optimization and upgrading of consumption structure. Currently, multiple approaches should be taken to nurture and strengthen new consumption, enhancing the primary engine of consumption.

Promotion of the integrated development of online and offline retail. On one hand, accelerate the development of new retail formats like unmanned retail and smart restaurants while promoting innovations in smart logistics. On the other hand, support internet platform enterprises in expanding their offline businesses, such as creating highlights in cultural tourism consumption with the new "online esports + offline cultural tourism" model.

Establish a stable and predictable institutional environment. Professor Xu Guangjian from the School of Public Administration at Renmin University suggests that for regulating new consumption, measures could consider employing “sandbox regulation” and “trigger-based regulation” methods, setting pre-defined risk bottom lines and safety red lines to invigorate corporate innovation. The focus should be on combating false advertising, safeguarding privacy, and improving consumer protection channels to boost confidence in consumption.

Since the beginning of this year, policies have continuously refreshed, continuously stimulating the potential of new consumption.

Various parties are making diverse efforts to enhance supply and demand matching: Many cities, including Guangzhou and Chengdu, are expediting the establishment of smart commercial districts to draw in foot traffic with “more engaging shopping experiences”; cities like Shenzhen and Shanghai are increasing subsidies for smart home appliances; time-honored brands like Yumeijing and Vitality 28 are experimenting with live commerce...

“As the effects of policies supporting the development of new consumption continue to be released, the development trend of new consumption in China is positive and its prospects are promising,” Xu Guangjian stated.

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