News & Insights
Jensen Yan
Managing Director (China)
The Chinese people are widely recognised as luxury products buyers, and the Chinese market is favoured by most of the international luxury brands.
However, this situation is changing after COVID-19. From the survey (Deloitte, 2023), Chinese consumers become more pragmatic and rational in their purchasing decisions. The luxury brands still have a big market in China, although there are several industries that have grown significantly in the Chinese market after the pandemic.
1. Outdoor Sports
Outdoor sports is transforming from a niche market to a lifestyle that the majority tend to do. From Statistia (2023), the outdoor market shares in China in 2022 valued around £23.7 billion, and is expected to grow to around £32 billion in 2025.
From Little Red Book (one of the most popular social channels in China) and TOPKLOUT data (2023), the most popular outdoors sports in different age groups are:
Post-80s: Frisbee, fishing and camping
Post-90s: Surfing & diving, fishing and outdoor skiing
Post-00s: Skateboard, ball sports and riding
2. Pet Economy
The pet industry experienced growth in 2022, making it one of the few industries to do so. Tmall and JD exhibited a combined YoY growth rate of 12.9% when compared to the same period from January to November 2021.
In 2021, post-80s and post-90s individuals emerged as the primary pet owners, comprising 77% of the total. Moreover, 81% of pet owners prioritise regular check-ups for their pets. Research indicates that pet owners with higher incomes tend to allocate more funds towards pet-related products.
Cat food now emphasises the importance of being healthy, professional, and nutritionally balanced. On Tmall, products claiming to be bait-free and grain-free witnessed a YoY growth rate of 26.8% in 2022.
The demand for smart pet supplies, including smart water dispensers and feeding machines, is on the rise. In 2021, 52.9% of pet owners purchased these innovative products, marking an increase from 43.1% in 2020. The market is projected to reach £1.1 billion by 2026, exhibiting an impressive compound annual growth rate (CAGR) of 20.5%.
3. Healthy Supplement Products
Chinese people have a brief deep in their roots - ‘Health is everything, health is the most important’. Especially after the pandemic outbreak, Chinese people spend much more on healthy supplement products. The Chinese health goods market is expected to reach 50% (£35.6 billion) of the Asian market by 2025 (Kerry, Future Nutrition White Paper, 2022).
Immunity-boosting products rank top one in the healthy supplement products category. During the pandemic, the sales of immunity-boosting products in self-operated stores on Tmall, JD and Vipshop increased by 230%. Among them, vitamin C-related products grew 391% YoY, and probiotic-related products grew 312% YoY. (eTOC, 2023)
As China reopens its doors to the world following the pandemic outbreak, the world's largest market reemerges on the global stage. Chinese consumers now have easier access to a wider array of international brands, providing global brands with enhanced opportunities to boost their sales.
