What: Chinese customers are now looking for discounts and local brands in order to sustain an otherwise morose consumption.

Why it is important: The gap between Western and Chinese customers is slowly disappearing.

In China, the economic slowdown and changing consumer sentiments are impacting the Singles' Day shopping festival, the world's largest online shopping event. Shen Ling, a 48-year-old government employee, exemplifies the trend of Chinese consumers cutting back on big-ticket purchases and shifting from international to domestic brands for items like cosmetics. A survey by Bain & Co indicates that over three-quarters of shoppers plan to spend less or maintain their 2022 expenditure levels.

China's economy grew by 1.3% in the third quarter and by 4.9% year on year, but consumer confidence is weak, particularly due to concerns over the property market. E-commerce giants like Alibaba and JD.com, facing these headwinds, are focusing on value-for-money products and heavy discounting to attract cautious consumers. This year, live-streaming e-commerce, known for its low prices, is also gaining popularity.

The shift is also seen in the types of products being purchased. While luxury and international brands were once highly sought after, there's now a growing preference for domestic brands, especially among younger consumers and those in lower-tier cities. Categories like beauty products, home appliances, and digital products are seeing a shift toward local brands.

Despite the economic challenges, some segments like the affluent senior shoppers are still spending on premium products. Retail sales in mainland China showed some improvement in the third quarter, suggesting potential areas of growth amidst the general trend of reduced spending.

Overall, Chinese consumers are adapting to the economic climate, with a focus on more economical choices and a lean towards local brands over foreign ones. This shift is evident in Shen Ling's decision to downgrade her premium membership with Estee Lauder, reflecting a broader trend of changing consumer priorities in China.

Chinese consumers on the hunt for low prices, local brands on Singles’ Day