Cautiously optimistic: Chinese consumer behavior post-COVID-19

Article From：麦肯锡

 

Chinese consumers are gradually regaining their confidence as the COVID-19 crisis subsides, suggesting the majority will resume higher levels of spending in some categories over the coming months, according to McKinsey’s latest survey of consumer attitudes. A significant minority, however, is less confident about the future, suggesting many consumer brands will need to work hard to get back to normal. Stronger appetite for online shopping, meanwhile, could persist as the crisis abates, albeit with variations across categories.

 

We interviewed around 2,500 Chinese consumers in two waves (the first between February 21 and 24 and again between March 20 and 23), enabling us to gauge consumer attitudes across eight product categories: alcohol, makeup, skincare, snacks, home cleaning, personal care, fresh food, and baby care. Still, the sentiments expressed should be viewed as directional rather than conclusive (partly because severely affected regions such as Hubei were difficult to survey) and should not be interpreted as an indication of wider economic trends.

 

COVID-19 shut down large parts of the economy in the early part of the year and continues to depress sentiment. However, if the recent decline in the number of daily cases persists, the slowdown in demand seen at the peak of the outbreak may start to dissipate. Around 50 percent of respondents to our March survey say they are optimistic that the economy may recover two to three months after the end of the outbreak (a five-percentage-point increase from the February snapshot). Respondents in higher-tier cities tend to be more positive, with around 55 percent saying they are optimistic, compared with around 40 percent in lower-tier cities.