Chinese consumer confidence measured at 111 points in the second quarter of 2014. This marks the third consecutive quarter for this level of consumer confidence, according to latest findings from Nielsen Consumer Confidence Index Report.
Amid the still strong willingness to spend among Chinese consumers, Nielsen’s finding also shows that Chinese respondents reported a quarterly increase in discretionary spending on a wide range of areas with this excess cash.
Meanwhile, the growth of offline FMCG retail sales measured by Nielsen slowed from 7.5 percent in Q1 2014 to 5.1 percent in Q2. This is due in part to a growing migration of Chinese consumers from offline to online. Among 11 FMCG categories measured by Nielsen, online sales (6.8%) contributed more to the overall growth rate of 12.7 percent for these 11 categories, compared with only 5.9% from offline sales.
Overall, the declining growth of FMCG retail sales doesn’t conflict with the growing purchase intention and high confidence of Chinese consumers. Nielsen insists the key to converting confidence and willingness to spend into consumption lies in how to reach the right consumers, how to resonate with them and how to employ innovative marketing strategies to persuade them to take purchasing actions.
For more information and latest insights on Chinese Consumer Confidence Index, please download China 2014 Q2 CCI Report.