BGC: Chinese Consumers Remain Cautious About Spending

According to Boston Consulting Group, Chinese consumers continue to be cautious with their spending as the recent government stimulus measures have yet to significantly restore their shaken confidence. A report from a research study launched by BCG in mid-October, which covers multi-tiered cities and includes over 30 consumption categories, indicated that any improvement in consumer confidence would be significantly affected by economic and geopolitical concerns.

BCG stated, "Consumer confidence remains neutral to slightly negative," adding that the stimulus package has not yet meaningfully improved consumers' incomes. The report noted that consumers, who once spent on luxury bags and travel, are now increasing their savings as a means to cope with future uncertainties, suggesting that this trend could hinder a long-term recovery in consumption. BCG also noted a 27% drop in the percentage of those seeing an increase in income, which negatively impacted consumers' income expectations for the next six months.