Hermes; Getty Images; Chelsea Jia Feng/BI
- Chinese consumers are opting for affordable alternatives across various categories to save money.
- The trend, known as pingti, is driven by economic challenges and is popular among young people.
- Consumers are finding cheaper substitutes for luxury goods, everyday items, and even healthcare.
Chinese consumers are on a budget and they’re not just scrimping on fashion.
It’s now become a trend in China to save on nearly every consumer category, from luxury goods to everyday consumables to travel, with cheaper substitutes.
It’s not an entirely new movement — because who doesn’t love a good bargain? — but its traction appears to have picked up in the last year amid China’s — which measures the price of goods at the factory gate — fell 1.8% from a year ago.
It was the 23rd straight month the PPI was in the negative zone, sparking concerns about a “deflation spiral” in which people could delay their purchases on expectations of further price declines, further dragging the economy.
China’s consumers continue to be frugal in the months ahead. A Bank of America survey of 1,052 adult Chinese consumers showed weakening consumer sentiment, with 30% of respondents planning to spend more — down from 45% in June. Just 21% expected their income to increase over the next six months.
Jin, the part-time counselor, told BI that she still prefers to buy cosmetics and accessories from brands she knows and trusts, like lipstick from Yves Saint Laurent and bags from Charles & Keith.
But she’s grown satisfied with the non-branded clothes she’s found online, especially given their lower prices.
“My family and myself are more cautious with spending,” she said.