[Beijing Diary] Mission: Open the Chinese Wallet

The whole world is looking at the wallets of Chinese consumers. After the transition to With-Corona at the end of last year, it was expected that Chinese spending would explode, but the situation is moving in the exact opposite direction. Chinese consumer sentiment remains in a cooling phase, and tightly closed wallets are hardly opening.

The recent consumption slump is not due to a lack of cash but psychological factors. There is great anxiety as unprecedented shocks like COVID-19 could strike at any time, and the real estate market, which accounts for most of their assets, is also collapsing. Companies in urgent need are employing various methods to open consumers' wallets. Eye for an eye, tooth for a tooth, psychology for psychology. Instead of emphasizing product performance or price, the common point is that they are focusing on moving consumers' hearts.

China’s ultra-low-cost beverage franchise Mishebingcheng created an animated film starring its brand character ‘Xuewang (雪王·Seolwang)’. On China’s social networking service Weibo, the hashtag related to the film title ‘Xuewang is Coming’ recorded nearly 25 million views. In the short trailer under two minutes, Xuewang, a snowman dressed in a red robe, fights enemies and shows cooperation and camaraderie. Online speculation suggests that the villain character, still veiled in mystery, might be the blue deer symbolizing industry rival Luckin Coffee.

On the 18th, Apple, which has been in China for 30 years, continued to send love calls to China. CEO Tim Cook wrote on his Weibo, "I am immensely proud to have served the Chinese people for 30 years," adding, "Our commitment to improving the lives of Chinese consumers, connecting them, fostering creativity, and making a positive global impact remains unchanged." At Apple’s first store in China, the Sanlitun Apple Store in Beijing, famous Chinese music producer Zhang Yadong screened a short film shot and edited using Apple products, receiving enthusiastic responses.

Hot pot franchise Haidilao, whose performance rapidly improved after the With-Corona transition, offers customers a head wash. Known for unique services such as nail art and foot massages, Haidilao introduced this service inspired by the lingering hot pot scent from head to toe after enjoying hot pot. Currently, it is only available in some regional stores, but there are plans to expand nationwide depending on the response.

In May, research firm iResearch named ‘self-satisfaction’ as the biggest consumer keyword in China for 2023 in its ‘2023 China Consumer Insight White Paper’. This concept is similar to ‘gasimbi’ (value for the heart), which was frequently mentioned in Korea several years ago. It explains that post-pandemic, Chinese consumers have become more actively interested in their preferences and open their wallets to places that meet their demands and stimulate their interests.

Marketing research firm Molketing revealed in an April survey that over 80% of respondents (1,266 people) enjoy interacting with brands. They demand brands to take firm stances and directions on social issues, diplomacy, and political topics facing society. Deloitte also mentioned similar points in its 2023 China Consumer Insight Report, stating that consumers want to form emotional connections with brands. The demands of the Chinese consumer market are becoming more demanding and complex.

This content was produced with the assistance of AI translation services.