The Covid-19 pandemic had a profound impact on people’s lives globally. In China, with its zero-Covid restrictions, the pandemic reshaped the way people lived including their purchasing behaviours. Many of the consumption patterns sparked by the pandemic have continued in 2023 and 2024.
As China emerged from its prolonged pandemic restrictions, the anticipated release of pent-up demand was slow and the expected boost in consumption faltered despite efforts to revitalise it. The year ended with total retail sales growing by 7.4% year-on-year in December 2023 – the weakest growth recorded since December 2022.
The development ahead remains uncertain, with both positive and conservative forecasts available regarding the future of the Chinese retail market. Growth is still expected albeit not at preferred levels, with forecasts ranging between 5.3 to 8.3 per cent yearly until 2026 depending on the source. Regardless, the size of the Chinese consumer market is vast, and China remains Sweden's most important trading partner in Asia.
With new consumer patterns, an ever-evolving digital landscape, and efforts to boost consumption, it is essential for Swedish consumer goods companies to understand what consumers in China are looking for, how they should act, and how Swedish companies can best capitalise on this to grow their sales in China.
This report, based on data from 1,600 consumers in eight Tier-1 and New Tier-1 cities in Mainland China, provides insights into the purchasing journey of Chinese consumers, and highlights five key actions for Swedish consumer brands who wish to succeed in the Chinese market.
