During focus groups we held in Shanghai, Chengdu and Ningbo this month, we observed a consistent behaviour across age groups 22 to 45. These Premium Consumers are no longer simply trading down or upgrading every category. Instead, they are choosing just one or two areas of life to keep premium, while quietly economising on everything else. Several respondents used phrases like “leave a little for the good stuff” or “spend only where it counts.” We are calling this Pick Your Premium.
Table of Contents
- How does this look in Everyday Life?
- Why is this happening?
- How do People Make a Decision?
- Implications for Brands
- Final Thoughts
- FAQs
How does this look in Everyday Life?
- Food and drink: Respondents said they now buy basic supermarket staples, but as Premium Consumers, they still choose a higher quality coffee bean or artisan dessert once a week. Alcohol was mentioned less than before. More emphasis was placed on functional non-alcoholic drinks with botanical or citrus profiles and very low sugar.
- Skincare and personal care: Larger refill bottles are replacing individual bottles for daily cleansing products. However, people still hold on to one high-performing serum or sun protection product. The belief is that visible or proven effectiveness is worth paying for.
- Home and appliances: Several respondents now see repair as a first step before replacing a product. This mindset was almost absent in our 2022 and 2023 work.
- Leisure: Low-cost group social activities were favoured over high-priced evening outings. Streaming services are actively rotated among small friend groups to avoid overlapping payments.
Why is this happening?
When we asked people what they had cut and why, the answers were specific and deliberate. Our consumer research shows that weekly budgeting is now normal due to rent pressure, family obligations, and less predictable income for white-collar workers. But nobody wanted to feel as if their life was defined by discount choices. The compromise for today’s Premium Consumer is to restrict premium spending to a narrow but meaningful zone that supports identity or well-being.
How do people make a decision?
- They pay for what they can physically feel or see working, such as targeted skincare or recovery products.
- They read ingredient labels carefully. Short lists with natural elements are favoured. Vague claims were dismissed.
- They appreciate formats that avoid waste and save storage space.
- Peer recommendations matter more than influencer hype. A sincere demo or firsthand review from a friend is trusted.
Implications for brands
Brands should consider building a family architecture in which a functional basic version and a clearly superior hero version exist together. Refill or repair options increase retention and signal responsible value. Small weekly reward items should be easy to identify on the shelf, not left buried in a large catalogue. And marketing should lean on proof rather than statements. People responded positively to short demonstrations or a transparent explanation of the formulation.
Final Thoughts
When we asked participants to sketch their ideal monthly budget, almost all set aside a small fixed amount as a joy line. Usually between 100 and 300 yuan. It was not large, but it was non-negotiable. This behaviour reflects the mindset of today’s Premium Consumer: control the spend, protect the self. For more insights or detailed reports, contact us today to learn how consumer behavior is evolving in 2025.
FAQs
- What does “Pick Your Premium Consumer” mean?
It refers to people who selectively spend on a few premium items while cutting back elsewhere to maintain balance and satisfaction. - Why is this behaviour growing in 2025?
Economic pressure, lifestyle shifts, and a desire for emotional balance have led consumers to focus on meaningful, high-value purchases. - How can brands appeal to the Consumer?
By offering both basic and hero versions of products, using transparent marketing, and showing real performance results. - What are common premium choices today?
Functional drinks, skincare serums, sustainable home goods, and quality food items are common focus areas for selective spending. - How does this trend affect luxury brands?
Luxury brands need to emphasise authenticity, performance, and emotional connection over mere status appeal.