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McKinsey: Chinese consumer confidence highest in decade

By Wu Yiyao in Shanghai | chinadaily.com.cn | Updated: 2017-11-23 14:30

Chinese consumer confidence has reached a 10-year high, with the "post-90s" generation emerging as the next engine of consumption in the country, said a research report of McKinsey & Company released in Shanghai Thursday.

The research, which polled some 10,000 consumers aged 18 to 65 from 44 cities and seven rural villages and towns, showed that some 80 percent of respondents said they believe that in the next five years their household income will increase, making Chinese consumers more likely to trade up in the future.

Chinese consumers are taking a more "nuanced view" of global versus local brands. Chinese brands have become credible competitors, especially in the categories of personal digital gadgets and personal care, the report said.

"It is fair to say that Chinese consumers buy local brands not because they are local but because they believe they offer better value, the product is more suitable for them, and the service is superior," the report said.

The "post-90s" generation, or consumers born after 1990, are rising up as the next driver of consumption in China, the report said. The group is projected to account for more than 20 percent of total consumption growth in China between 2017 and 2030, higher than any other segment.

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