Every reporter: Huang Hai, Shu Dongni, Wang Fan, Cheng Ya, Zhang Yun Every editor: Zhang Haini
Navigating through the downturn of the past three years, 2023 is a rallying cry for the consumer sector to go on the offensive. At the beginning of the year, traditional industries such as food and catering showed a clear upward trend, leading the wave of recovery; in the middle of the year, new forces such as new consumption, digital consumption, and health consumption were poised to become new growth engines; towards the end of the year, emerging industries such as e-commerce and retail, and the ice and snow economy were in a hot atmosphere, injecting a shot in the arm for consumption recovery in the coming year.
Looking back on 2023, "cost-effective" has become a frequent visitor on the hot search list, from Huaxizi eyebrow pencil to Zhongxuegao ice cream, and then to domestic "sky-high" down jackets...... Almost all businesses have found that consumers have become more rational this time. In the transformation of consumption concepts, the wind of domestic products is also quietly blowing, and brands such as Bee Flower, Vitality 28, and Chenguang Stationery are rejuvenating the second spring......
After a review by invited experts, we have selected the top 10 news in the consumer industry in 2023. The seemingly independent ten news stories are buried in the grass snake gray line of consumption change, which also reflects the new atmosphere of the future development of the consumer industry.
NO.1
The battle for the trillion-dollar snack market has begun
BESTORE sued Zhao Yiming
In the first half of 2023, the total retail sales of consumer goods in the country reached 22.8 trillion yuan, a year-on-year increase of 8.2%. According to iiMedia Research, the market size of the mainland snack food industry has continued to grow in the past decade, from 410 billion yuan to 1,165.4 billion yuan, and it is expected that the market size of China's snack food industry will reach 1,237.8 billion yuan in 2027. Tianfeng Securities pointed out in the research report that the current market size of the snack food industry has reached one trillion yuan.
The market competition has become increasingly fierce, and the giants are playing games and gunpowder is everywhere. At the end of 2023, because Zhao Yiming was very busy holding hands with snacks, BESTORE took Zhao Yiming snacks to court.
"Zhao Yiming Snacks and related parties have not informed accurate and complete information from beginning to end. On December 6, 2023, BESTORE said in an email interview with a reporter from "Daily Economic News" that it was not until November 10, 2023 that the company learned of the merger through public reports. The company believes that Zhao Yiming's deliberate concealment and guidance directly led to Guangyuan Juyi's transfer of its equity based on the wrong or false transaction background and pricing basis.
NO.2
WHO reports
Suggests the potential risk of aspartame
Since the last century, consumers' concerns about the safety of "sugar substitutes" have been running through nearly 100 years of history. Aspartame has been embroiled in security controversies on several occasions.
On July 14, 2023, the International Agency for Research on Cancer (IARC) and the Joint FAO/WHO Expert Committee on Food Additives (JECFA) released an assessment report on the health effects of the artificial sweetener aspartame, classifying aspartame as "probably carcinogenic to humans" (Group 2B carcinogens), but as long as the intake is limited to a certain range, it can be consumed with confidence.
The International Beverage Association later said that aspartame was no more harmful than aloe vera and hundreds of other substances, all of which were classified as "limited" and "incomplete" according to the IARC description.
The National Center for Food Safety Risk Assessment and the National Cancer Center conducted a safety assessment based on the latest assessment results and the consumption of mainland residents, saying that aspartame can be used in accordance with the current standards and specifications in the mainland to ensure safety.
NO.3
The tourism market is recovering
Outbound travel is hot, and hotel price increases are hotly discussed
In 2023, the tourism industry is recovering strongly. According to the data center of the Ministry of Culture and Tourism, the number of domestic tourists reached 826 million during the Mid-Autumn Festival and National Day holidays, an increase of 71.3% year-on-year and 4.1% year-on-year compared with 2019, and the domestic tourism revenue reached 753.43 billion yuan, an increase of 129.5% year-on-year and 1.5% year-on-year compared with 2019.
The popular Double Festival holiday has also given birth to a new tourism trend that is different from the past: this generation of consumers prefer cost-effective and niche destinations, and also pay more attention to cultural and artistic exchanges, and the popularity of parent-child research, exhibitions and dramas has increased significantly.
In addition, outbound travel has also become a hot spot, but at the same time, the price of hotels has increased in the peak season, and problems such as "mismatch" of homestays have also frequently appeared on the hot search.
NO.4
Jackets, military coats
It has become the new favorite of young people this winter
In the winter of 2023, jackets have become the most preferred choice for young people to replace down jackets, and young people wearing jackets can be seen everywhere on the street. JD.com data shows that since 2023, the turnover of jackets has increased by 165% year-on-year. From October 20 to October 25, 2023, the turnover of jackets increased by 200% year-on-year.
A jacket industry insider analyzed to the "Daily Economic News" reporter: "In the past, there was not much middle ground in the jacket category. Either it is a professional outdoor brand, but the price is generally more than 1,000 yuan, and most people do not have such an overmatched value in their lives and outdoor use. Either it is more than 100 or even dozens of three-in-one jackets, including many white-label manufacturers selling jackets under the gimmick of jackets, making it difficult for ordinary consumers to distinguish them.
In addition, the short video of college students in Liaoning, Hebei and other places organizing groups to wear military coats to attend classes has become popular. According to data from e-commerce platforms, during the "Double 11" period, the turnover of cotton clothing designed by military coats increased by 181% year-on-year.
More cost-effective, functional diversity, Internet celebrity effect demonstration and other reasons, so that young people choose jackets and military coats in the winter of 2023.
NO.5
Eight Horse Tea Industry, Texas Grilled Chicken, etc
Consumer companies have failed to hit IPOs
In 2023, a number of companies in the consumer sector have paused their path to IPOs. These include Bama Tea Industry Co., Ltd., which hit the "first share of tea", Shandong Dezhou Grilled Chicken Co., Ltd., a "time-honored brand", and Anhui Laoxiang Chicken Catering Co., Ltd., as well as Lao Niang's Uncle, Wolong Food, Xian Meilai, Longjiang Yuansheng Wagyu, etc.
In addition to the above-mentioned companies, since 2023, many companies in the field of "food, clothing and housing" have withdrawn their A-share IPO applications, and some of them have chosen to switch to Hong Kong stocks.
NO.6
The tide of domestic products has attracted frequent attention
Vitality 28 and other brands have a second spring
In 2023, there will be another wave of high-quality and inexpensive old domestic products. Domestic brands represented by Vitality 28, Bee Flower, Yu Meijing, Hongxing Erke, etc., have gained the affirmation of many netizens, and to a certain extent, let many old domestic brands re-enter the public eye.
But on the other hand, whether or not it can really catch this "splashing wealth" is still a test of the hard power of the brand. Jiang Han, a senior researcher at Pangu Think Tank, previously told the "Daily Economic News" reporter that compared with the new brand that started with the Internet, the old domestic products are too traditional in terms of marketing and sales, "(The old domestic products) are easy to form path dependence, and even in the development process, they often lack innovative thinking and innovation ability, which leads to the fact that although the product is good, it lacks sufficient supporting marketing capabilities, resulting in the problem of 'wine fragrance is also afraid of deep alleys'."
NO.7
Pencils are more expensive than gold
Hua Xizi "overturned"
In September 2023, Huaxizi's eyebrow pencil is more expensive than gold related entries on the hot search. According to the Taobao platform, the price of Huaxizi Shou Wumei chalk in the official flagship store of Huaxizi is 89 yuan, and each piece is free of a refill, with a net content of 0.08g each. After conversion, the average per gram was 556.25 yuan, which was nearly 20% higher than the unit price of gold announced by the China Shanghai Gold Exchange at that time.
"Netizens burst with five makeup brushes of Xizi for 919 yuan", "What are the eyebrow pencils that are more expensive than Huaxizi", "Yu Meijing has 320,000 fans in less than a day" and other related entries have frequently appeared on the hot search, with a total of more than 200 million views.
In the transition from "Internet celebrity" to affordability, there may be a consumer trend that cannot be ignored - the first generation of Internet celebrity beauty brands represented by Huaxizi and Perfect Diary seem to be unable to sell in the base camp of the Tao system. The reporter of "Daily Economic News" checked the data of third-party research reports and found that since December 2022, on the Ali platform, the base camp of Huaxizi, Huaxizi's total GMV (total turnover) has seen a high year-on-year decline for many months.
According to the research report of China Merchants Securities, from December 2022 to August 2023, the monthly GMV of Huaxizi products on the Alibaba platform increased year-on-year for only three months. In December 2022 and January 2023, Huaxizi's overall GMV on the Alibaba platform fell by as much as 45% and 56%, respectively.
NO.8
It can easily cost 8,000 or even tens of thousands of yuan
High-priced down jackets are hotly discussed
"Expensive" on the hot search! Would you buy a down jacket for thousands of yuan?
This winter, there is a lot of talk about the exorbitant price of down jackets. According to online shopping websites, the mainstream prices of domestic down jacket brands are mostly concentrated in a few hundred to two thousand, and the market price of more than 1,000 yuan has become very common. A number of brands have opened high-end lines, and the price of down jackets of some brands has risen to 4,000 yuan to 7,000 yuan.
According to the research report of Guojin Securities, in 2018, the price increase of Bosideng's main brand was as high as 30%-40%, the proportion of down jackets with a unit price of 100 yuan to 1,800 yuan increased from 47.6% to 63.8%, and the proportion of down jackets with a unit price of more than 1,800 yuan increased from 4.8% to 24.1%. In 2020, the average selling price of Bosideng down jackets was 1,600 yuan. In 2021, Bosideng successively launched the windbreaker down series and the Dengfeng 2.0 series, with a price of more than 10,000 yuan. According to Bosideng's official flagship store, the price of the new outdoor mountaineering down jacket and windbreaker down jacket in the winter of 2023 has exceeded 6,000 yuan.
However, judging from the data, consumers are still more inclined to buy affordable products. According to iiMedia Consulting data, in 2023, most Chinese consumers are more willing to buy down jackets with a price of less than 1,000 yuan, and the most concentrated price range is 400 yuan to 600 yuan, and only 3.3% of consumers choose a price of more than 1,500 yuan.
NO.9
The former "Ice Cream Assassin" Zhong Xuegao
Layoffs were exposed
In October 2023, a number of netizens broke the news on social platforms that Zhong Xuegao was "in arrears". The reporter of "Daily Economic News" contacted a number of internal employees of Zhongxuegao, and learned directly or indirectly from many sources that the employees who were owed wages by the company were not only employees who left the company, but also employees of Zhongxuegao headquarters who were owed wages for two to three months.
Regarding the alleged "salary arrears", the relevant person in charge of Zhong Xuegao's public relations department told reporters that the company is still operating normally, and the salary arrears are mainly attributed to the employees who left in May and June 2023.
According to the enterprise investigation, recently, Shanghai Zhongyuan Food Co., Ltd. added a new information on equity freezing, the person subject to execution is Zhongxuegao Food (Shanghai) Co., Ltd., the amount of frozen equity is 1 million yuan, and the freezing period is from December 7, 2023 to December 6, 2026, and the enforcement court is the Shanghai Railway Transport Court.
NO.10
"Duck neck with rat head" and "Duck meat in the lamb roll"
Food safety concerns are a concern
In June 2023, students of Jiangxi Vocational and Technical College of Industry ate a foreign object suspected of being a rat's head in the meal ordered at the "Meika Xianglu" stall in the college's first canteen. Recently, the administrative punishment of the enterprises involved in the "rat head duck neck" and the relevant responsible persons was announced, and the parties involved and the responsible persons were fined a total of 7.06 million yuan.
At the beginning of September 2023, a blogger posted a video on social platforms, exposing that Banu's sub-brand "Chaodao Self-selected Hot Pot" Beijing Hopson Hui Store sells "fake mutton". Law enforcement officers from the Beijing Chaoyang District Market Supervision Bureau conducted on-site inspections of the stores involved and conducted random inspections of the raw materials of meat dishes (a total of 7 types) sold by them. After testing by the testing agency, sheep-derived, bovine-derived and duck-derived lamb raw material samples were detected in two selected lamb raw material samples, including the high-calcium mutton roll of the product involved.
According to data released by the Consumer Association, there were more than 48,000 food-related complaints in the first half of 2023. From food spoilage, foreign objects found, to physical discomfort after eating, consumers are concerned about food quality and safety. With the popularity of new formats and models such as online food ordering, live streaming, and fresh food delivery, food safety supervision has ushered in new challenges.
Top 10 news experts in the consumer industry
Liu
Chief analyst and assistant director of Huafu Securities
In 2023, the market's expectations for consumption have been adjusted several times and are destined to be extraordinary. The hot spot of consumption and the focus of enterprise development have changed greatly compared with the past, some follow the trend, some sail against the wind, and creating a new engine of growth has become the constant theme of all enterprises.
K-type differentiation is a keyword that has been repeatedly mentioned in 2023, and consumers will return to rationality and pay more attention to spiritual enjoyment: on the one hand, the price of down jackets has risen, and outbound travel is popular, and on the other hand, discount snacks and military coats have become the new favorites of young people. Every business needs to adapt to the needs of the market to be upright and surprising.
From a positive point of view, the popularity of offline business is coming as scheduled in some industries, and the popularity of tourism is the epitome of the strong recovery of offline formats. Brands such as Vitality 28 have returned to consumers' field of vision, and cultural self-confidence has further given birth to the concept of national fashion. The delivery of the first domestically produced large cruise ship also indicates that China's consumption momentum will always be strong in the future.
Correspondingly, we have also seen the failure of the IPO of many consumer companies, the turmoil of a trillion Wade closing stores, Zhong Xuegao being exposed to layoffs, and the potential risks of aspartame being warned, and there is still a long way to go in the future.
Looking forward to 2024, consumption will continue to grow in perseverance and change, we still need a little more patience, more faith, more responsibility, adhere to the power of value, and look forward to the hope of change.
Ye Min
PwC Consumer Market Industry Leader, Chinese Mainland
In the first three quarters of 2023, consumer spending contributed 83.2% to China's economic growth, of which 94.8% in the third quarter. It can be seen that consumption is still the main engine driving China's economy, and with the continuous change of consumer groups and their behavioral Xi, new trends and new models are presented.
1. Consumption is becoming more rational, diversified and personalized. One of the most significant changes in consumer behavior has been the shift towards more pragmatic and rational purchasing decisions, with a greater focus on product quality and value. New consumer groups such as silver-haired people, single consumers, and Generation Z are emerging, and residents' consumption has emerged from traditional consumer categories to more niche categories, and brands focusing on the needs of subdivided groups have ushered in more development opportunities. In 2023, the "Double 11" will see a counterattack from a neglected niche group, with road bikes, e-sports products and jackets, known as men's "new three treasures", increasing by 305%, 114% and 90% respectively. At present, Chinese consumers are becoming more mature and rational, showing a consumption trend of attaching more importance to high cost performance, improving healthy life, and having self-pleasing emotions.
2. Travel and cultural tourism activities are full of vitality. Chinese consumers are enthusiastic about both domestic and outbound travel. According to the PwC Global Consumer Survey China Report 2023, 62% of Chinese consumers expect to spend more on travel, which is much higher than the global average, and more than 50% expect them to travel (or are highly likely) to travel on international flights in the next six months. The surge in tourist arrivals, incomes and consumer spending shows that Chinese consumers are eager to return to the levels of travel and leisure activity that existed four years ago, and also presents significant opportunities for the travel, hospitality and retail sectors.
3. Guochao provides an opportunity for "time-honored" brands to "turn red". According to PwC's research report, Chinese consumers still prefer local brands, believing that local brands are more cost-effective and have a better understanding of local consumer Xi. In 2023, many old domestic brands will usher in the "second spring" of development. However, we have also observed that some old national brands, due to consumers' awareness of domestic products or specific events, suddenly passively received a lot of attention, and short-term sales soared, but they can only rely on one or a few fist products, the entire product family is outdated, lacks innovation, and misses the opportunity to achieve new growth. In order to stimulate growth, some old brands can only achieve short-term sales growth through frequent cross-border co-branding to attract consumers' curiosity and early taste, but lack of new products to undertake products and meet the real needs of consumers, which consumes brand reputation and trust. PwC believes that what old brands really need to do is to take the opportunity of the national tide and start from the core to achieve the iteration of the brand image, that is, brand renewal. Brand renewal is not simply brand rejuvenation, but needs to deeply examine and optimize its own positioning from a strategic height, invest in multiple dimensions and for a long time, and integrate and systematically improve multiple elements that affect audience cognition, such as product design, user experience, marketing methods, and brand value expression.
Zhang Gejian
Partner and Managing Director of Sullivan Greater China
2023 is a year of both opportunities and challenges.
In terms of the consumer market, although the popularity of "Double 11" is not as popular as in previous years, it can be seen that major e-commerce companies are looking for new growth points, focusing on subdivided tracks and sinking markets, the development of Pinduoduo, Douyin live streaming, Xiaohongshu live streaming and other phenomena show that merchants are constantly exploring potential consumption scenarios. Like the old national object that suddenly exploded in 2023: the military coat. The slogan "It's not that down jackets can't afford to buy, but military coats are more cost-effective" can see the transformation of contemporary young people's consumption mentality and self-confidence in national culture, and consumer products have transitioned from the emphasis and expression of social image to the use value in the traditional sense.
There is also an interesting phenomenon in the area of service consumption, where young people choose to attend evening school in the middle of work and progress. Evening schools offer a wide range of affordable and fun classes, from yoga, tea ceremony and floristry to African drums and wine tastings, as a form of literacy education. Evening school is a utopia for young people outside of work, after work to learn Xi what they are interested in, meet like-minded partners, you can see that modern young people begin to pursue small healing and warmth in ordinary life.
Finally, I would like to quote a sentence: in 2024, on the land of China, the seeds of innovation will continue to germinate and grow, and nothing can stop the power of growth.
Feng Huaqing
Vice President of Rees Category Innovation Strategy Consulting China
From a more optimistic perspective, "consumption grading" is more likely to become the main theme of China's development in the next decade, which means that the opportunity for enterprises to "innovate-premium" and "cost leadership" exist at the same time, and the time to bottom out is not far off.
National Business Daily