In the dynamic world of consumer trends, China’s market is offering a fascinating paradox. Despite mounting economic pressures, Chinese consumers are not simply tightening their wallets—they’re becoming strategic spenders. The story is not of austerity, but of selective indulgence. While shoppers are embracing budget-friendly options, they are also willing to splurge on emotional and experiential purchases.
As a leading market research company in China, Hub of China has conducted deep-diving focus groups in China and surveyed consumer behavior across Tier 1–3 cities. What we’ve uncovered reflects a shift that is crucial for both local and international brands aiming to thrive in this ever-evolving landscape.
The Tale of Two Wallets: Frugality Meets Indulgence
Market research in China reveals a consumer landscape divided not by income, but by spending intent. Consumers are now saving smartly, but spending purposefully—especially on purchases that deliver comfort, social value, or convenience. This trend demands a recalibration from brands hoping to navigate this market successfully.
What Consumers Are Cutting Back On
Everyday Essentials & Name Brands
One of the most noticeable trends is the rise of “pingti” products—affordable alternatives to traditional name brands. In fashion, beauty, and daily-use household goods, Chinese shoppers are increasingly choosing quality without the logo.
“I don’t need a big-name brand. If I can get the same quality for half the price, why not?” – Respondent from Chengdu
This sentiment reflects the strategic mindset behind today’s consumer. Data from our China market research agency shows a surge in popularity of discount chains, such as the MMHM Group, which recently doubled its store count to keep pace with demand.
Hotpot restaurants and coffee chains are capitalizing on this budget-conscious behavior with RMB 9.9 meal deals (~USD 1.40), further proving that value-driven experiences are now a key purchase motivator.
Luxury Without Meaning? Not Anymore.
Our market research firms in China are observing a pullback on luxury spending—but not across the board. Shoppers are moving away from flashy, logo-driven purchases and gravitating toward “quiet luxury”—minimalist, timeless pieces that exude class without shouting.
The keyword here is value. Unless a product offers emotional significance or unique experiential value, high-end branding alone is no longer enough to justify a premium price tag.
Where Consumers Are Still Spending—Willingly
Interestingly, market research agencies in China are finding that some sectors are not only resilient but booming, thanks to the consumer desire for emotional connection, entertainment, and efficiency.
1. Entertainment & Escapism
From short dramas to console games, the Chinese are investing in experiences that let them escape reality and engage with digital storytelling. The phenomenal success of Black Myth: Wukong—a video game inspired by Journey to the West—is a case in point. It sold 10 million copies in just three days and even spurred real-life tourism to its in-game locations. During the October holiday, visitor numbers to Shanxi temples rose by 47%.
For brands, the lesson is clear: Digital experiences can drive both online and offline engagement. This crossover is particularly significant for those conducting market research in China and trying to gauge where emotional and economic priorities intersect.
2. Comfort and Emotional Connection
In today’s stress-laden environment, consumers are drawn to products that soothe. Our focus groups in China’s found that Jellycat plush toys, traditionally marketed to children, are now popular among adults aged 25–44 for stress relief.
Similarly, manga and anime merchandise—often associated with nostalgia—is seeing renewed interest, reflecting the desire for feel-good purchases that offer emotional refuge. Even live animals and panda exhibits are drawing massive crowds, showing that real-world connection and softness have become rare luxuries worth investing in.
3. Convenience is King
Consumers aren’t just buying things—they’re buying time and ease. The rise of micro-length TV shows (short dramas), expected to generate RMB 48.4 billion (~USD 6.6 billion) in 2024, underscores this shift toward bite-sized entertainment.
Whether it’s automated home tech, AI appliances, or on-the-go wellness products, Chinese consumers are prioritizing efficiency and stress reduction.
This trend aligns perfectly with the insights gathered from leading market research recruiters in China, who emphasize the importance of understanding user lifestyle and daily habits to develop products that seamlessly integrate into modern life.
Strategic Insights for Brands and Marketers
Affordable Luxury is the New Standard
Brands that find the sweet spot between affordability and quality are gaining ground. Think value bundles, limited-time offers, or product lines that mirror luxury aesthetics without the price tag.
To tap into this, many top market research companies in China’s advise incorporating “premium on a budget” positioning into brand messaging.
Experiences Matter More Than Ever
Today’s consumers don’t just want to buy—they want to feel. Emotional and immersive storytelling can be the difference between being ignored or adored. Your product may be functional, but if it can also evoke nostalgia, joy, or curiosity, it’s a winner.
For those conducting market research in China, this means evaluating consumer emotional triggers—not just purchase behaviors.
Convenience and Comfort Are Key Priorities
Products and services that save time, enhance comfort, or provide an emotional lift are thriving. Whether it’s plush toys, short-form content, or smart tech, the Chinese market rewards those who make life easier.
Final Thoughts: Strategic Spending is the New Normal
China’s consumer economy is not shrinking—it’s shifting intelligently. As confirmed by our market research agency in China, strategic frugality now exists side by side with purposeful indulgence. Consumers are no longer spending impulsively but are more discerning, emotion-driven, and value-oriented than ever.
For brands and businesses, the future is promising—but only if they are agile enough to adapt. Partnering with a China market research agency like Hub of China offers unparalleled insights into these consumer shifts. Our expertise as a top market research company in China ensures you stay ahead of the curve by understanding not just what consumers buy—but why they buy it.
Need Help Understanding China’s Evolving Consumer Base?
Hub of China is a leading market research company in China offering tailored solutions—from focus groups in China to quantitative surveys, consumer panels, and on-the-ground insights. Whether you’re launching a new product or refining your strategy, we help you navigate the market research industry in China’s with confidence.
Let’s collaborate. Contact Hub of China, your trusted market research firm in China, and start making data-driven decisions today.