China's rapidly changing market dynamics are giving rise to varying consumer trends across industries, signaling significant shifts as we move toward 2025. Recent studies and expert analyses point to how consumers are becoming increasingly discerning, resulting in diverse market opportunities for brands willing to adapt and innovate.
According to Liu Jianyong, customer director at Kantar Consumer Index, at the recent event organized by Economic Observer, the fast-moving consumer goods sector is witnessing more cautious spending habits. Liu noted, "Urban consumers are now more rational about their total expenditures and price points. Their true demands have shifted toward high-quality products, reasonable pricing, and improved lifestyles." This shift highlights the increased sophistication of consumer needs as brands strive to meet higher expectations.
The Chinese market's overall growth has slowed, with Liu indicating slight negative growth observed as early as the third quarter of 2024. Despite this trend, certain product categories continue to thrive by focusing on high-end appeal. The marketplace has remarkably begun to favor value-for-money alternatives, reflecting consumers' search for quality within their cost constraints. Many brands are responding by ensuring their offerings balance quality and affordability.
Consumer behavior changes are being spurred by distinct demands between younger and more mature households. Younger consumers are drawn to social experiences and personalized items, often seeking value-driven products for daily needs. On the flip side, older families prioritize health and wellness, reflecting their higher purchasing power within health product segments.
The B2C channels are also diversifying, led by platforms such as Douyin and Pinduoduo, which intensify competition among retailers. Experts agree this fragmentation necessitates businesses to refine their marketing strategies effectively to resonate with contemporary purchasing patterns.
On January 6, the 11th Jin Xuan Award ceremony was held, highlighting the automotive industry's shifting marketing strategies. Shao Mingchao, chairman of the award committee and CEO of Zhimeng Consulting, emphasized, "The value of attention is becoming increasingly pronounced. Companies are focusing on gaining customer attention, which is integral to leveraging marketing value.” The awards showcased innovative approaches to marketing within the automotive sector, recognizing brands’ abilities to adapt to novel trends over the past ten years.
Shao also pointed out four foundational topics identified within the award-winning cases, namely brand evolution, customer engagement, user value differentiation, and corporate social responsibility. With the emergence of what he described as the 'truth-seeking' and 'practical' consumer, brands will need to align their offerings closely with these updated consumer values.
Forecasts for 2025 indicate four distinct market segments characterized by trade-offs between price and features. The "budget" segment emphasizes extreme affordability, satisfying basic functionality. Conversely, the "premium" category involves consumers ready to invest slightly more for superior quality enhancements, addressing both emotional and experiential desires.
Regarding bathroom industry trends, the recent report highlighted significant growth within 13 subcategories. Current analysis identifies six primary consumer groups, such as urban millennials and families with different priorities ranging from premium function to user experience. Notably, the report outlines several influential trends, including the rise of integrated smart bathrooms, enhanced aesthetic environments, and stronger emphasis on overall product reliability.
According to the white paper on the bathroom industry by Giant Engine, consumer preferences will see shifting definitions of value, with many prioritizing performance, brand trust, and innovation alongside functionality. With the current market exceeding 190 billion yuan, there's great potential for growth as brands remain agile and attentive to developing consumer needs.
All of this paints an illustrative picture of the competitive market on the horizon for 2025. Retailers and manufacturers are pushed to innovate continuously, refine their strategies, and focus on consumer engagement to capture the hearts and minds of increasingly discerning customers.
Both rapid changes and apparent divides within markets show the necessity for brands to be proactive, hinging success on their ability to listen, adapt, and create value-driven experiences for their customers.