Nielsen: China's consumer index remains high in the third quarter of 2018
The Nielsen Consumer Trend Index consists of three aspects: employment prospects, personal finances, and consumer willingness. The consumer trend index is positive above 100, and vice versa.
The report shows that in the third quarter, the three elements that constitute the China Consumer Trends Index were in a stable state, with a personal economic situation of 68 points, which was the same as the previous quarter. Employment expectations and spending willingness were 73 points and 59 points respectively.
Global horizontal comparison, since 2015, China's consumer trend index has continued to be higher than the global average. According to Nielsen data, the China Consumer Trend Index for 2015 was 107 points, 10 points higher than the global average; the China Consumer Trend Index for the first half of 2018 was 114 points, still far higher than the global 105 points.
Nielsen believes that the increase in consumer spending will be an important factor in the steady growth of China's consumer trend index. According to the report, in the third quarter of 2018, households with spending growth accounted for 45%, a significant increase from 39% in the third quarter of 2017. In addition, households with the same expenditure accounted for 52%, while only 3% of households believed that household spending was lower than the same period last year.
From the perspective of consumption structure, the report pointed out that paying for interest, rational consumption, and cost-effectiveness have become the mainstream consumer attitudes of Chinese consumers. The data shows that 48% of consumers tend to buy products that are cost-effective and value for money in the coming year; 39% of consumers tend to choose products that suit them. This part of consumers believes that brands are not the only choice criteria; 36% of consumers are willing to pay for interest and emotional consumption, even if they face more expensive prices and more expenses.
Zhao Xinyu, president of Nielsen China, said that with the tax cuts, special deductions and other tax reduction policies coming to an end, the tax policy is more fair and reasonable, the Chinese people really enjoy the tax reduction dividend, and the disposable income of residents has increased significantly. Effectively boosting consumption and playing a positive role in promoting economic growth.
Zhao Xinyu pointed out that China's current consumption upgrade is not only an improvement in product quality requirements, but also an upgrade of consumer attitudes. Under the tide of consumption upgrading, consumers' consumption mentality is more mature, consumer claims are more pragmatic, and consumer choices are more rational. They are no longer willing to pay for the pursuit of face and big brands, and a new consumer culture is taking shape.