China’s consumers focus now on emotional gratification – Ashley Dudarenok

 

Ashley Dudarenok

The demands of China’s consumers have changed profoundly, says marketing expert Ashley Dudarenok, in an interview at CNBC. “People are not just buying things,” she said at CNBC in a phone call. “They’re buying feelings, they’re buying identity, they’re buying a sense of connection.”

CNBC:

“People are not just buying things,” said Ashley Dudarenok, founder of digital consultancy ChoZan told CNBC in a phone call. “They’re buying feelings, they’re buying identity, they’re buying a sense of connection.”…

Over the recent Chinese New Year holiday, data from ChoZan shows that consumers spent significantly less on traditional staples like festive food gifts (known as nian huo), and more on unconventional expenses, like travel experiences and cosmetics compared to the same period in 2023.

“What people used to buy back in the day, like liquor and bulk nuts … were all about social obligations and tradition. Right now, people buy gift boxes, they buy designer toys … and people don’t frown upon that,” Dudarenok said.

This shift from obligatory to more discretionary spending over China’s largest holiday exemplified broader shifts in consumer norms, according to Dudarenok, with Chinese consumers increasingly looking to satisfy desires for personal fulfillment, over more “rational” purchases…

China’s rising costs of living have also dovetailed with record low birth rates in 2025, adding to a growing sense of loneliness among many in the country.

Compounded, these pressures have instilled in the average Chinese consumer “a sense of crisis,” Dudarenok said, pushing many to redirect spending toward things that “bring [them] joy.”

More at CNBC.

Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more consumer experts at the China Speakers Bureau? Do check out this list.

Why factories might outperform in China’s 2021 New Year – Shaun Rein

 

Shaun Rein

Typically, China’s economy comes to a standstill during the annual Chinese New Year, but not in 2021, explains business analyst Shaun Rein to CNBCTV. GovermentalCovid-19 restrictions make it tough for migrant workers to return home, and double salaries at the factories might encourage them to continue working during the festival. Other industries like travel and leisure might suffer, though.

CNBCTV:

Shaun Rein, Managing Director at China Market Research Group on Wednesday said he expects the factory sector to outperform the expectations.

“The factories are offering incentives for workers to stay, they are giving double payment on their salaries. Meantime a lot of these workers have decided to stay where they work and so factories are going full steam ahead in January and February, so we expect that the factory sector is going to outperform a lot of expectations,” he told CNBC-TV18.

“You are also going to see outperforming in manufacturing and on eCommerce,” he added.

Rein’s observations come at a time when the Chinese migrant workers return home during the Chinese Lunar New Year period. Coming in the backdrop of almost a year of the coronavirus pandemic with reports showing re-emergence of the cases in January, the Chinese government got nervous and a lot of provincial governments made the COVID test mandatory.

China’s central government said that between January 28 and March 8—the six week period—there are going to be high restrictions on internal travel.

These new instructions on travel will hit the travel and leisure industry negatively, Rein said.

More at CNBCTV.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more strategic experts at the China Speakers Bureau? Do check out this list.

Foreign firms lackluster on Alibaba´s rural approach - Ben Cavender

Ben Cavender

Preparations for China´s New Years shopping spree has started, and Alibaba focuses on the previous under-served rural areas. But foreign firm have not reacted very enthusiastically on this move, says retail analyst Ben Cavender to Dow Jones, since it is a very long-term approach.

Dow Jones:

"I think what we are seeing right now is the major-ecommerce players like Alibaba really laying the groundwork for future growth," according to Ben Cavender, principal at China Market Research Group. 

"Capturing these rural consumers who previously had very poor access to brands and products is going to be critical for future revenue growth given how competitive the e-commerce market already is in first and second tier cities," he told Dow Jones... 

At this stage, however, any presence on these sites may have to be regarded as a marketing exercise rather than a revenue-generating activity, Cavender advised.

More in Dow Jones.

Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you looking for more experts on ecommerce at the China Speakers Bureau? Do check out this list.    

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