Chinese households opt for domestic goods as budgets tighten, national pride swells
An anaemic recovery has brought consumers back into the fold for long-abandoned domestic brands, with sales for lower-priced native products on the riseCompanies must take the initiative to ensure this temporary uptick can be translated into persistent success, analysts sayChina's economic recoveryMeredith ChenPublished: 10:00am, 2 Oct, 2023Why you can trust SCMP
With more Chinese households looking for ways to lighten their budgetary load as incomes stagnate and uncertainty roils, domestic brands are becoming a more attractive alternative for consumers who previously shunned their country’s time-honoured stalwarts.
However, since those brands represent a small portion of national retail sales, analysts said Beijing needs to do more to revive consumer confidence and translate the bump into bigger growth momentum.
“[Bargain prices are] an opportunity for the rise of these domestic products as a cheaper substitute for foreign brands,” said Zhuang Jinglun, an analyst at EqualOcean.
Home-grown brands in cosmetics, clothing and household appliances recorded a steady rise in market share for the first half of the year, according to a report released by the research firm in August.
Weak consumer confidence has been one of the top challenges for Beijing’s policymakers since the onset of the pandemic.