---
title: "Unexpectedly, Consumer Attitudes Have Changed So Much in the Past Decade"
description: "Living standards have improved, but what are people's consumption preferences? A brief recall of wages and prices ten years ago confirms the improvement, but by how much? Let's look at the data. Source: China Statistical Yearbook. By the end of 2023, per capita income and expenditure have nearly doubled over the past decade. Remember the Engel coefficient from middle school? It measures the proportion of food expenditure in total consumption, indicating living standards. However, the coefficient has limitations for China, as people have turned survival consumption into enjoyment consumption."
author: "真叫卢俊团队"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2024-12-17"
categories: "Brand Marketing"
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original_source: "https://mp.weixin.qq.com/s/UY1EWUw_CFHCu1ybbo-tIA"
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citation: "真叫卢俊团队. “Unexpectedly, Consumer Attitudes Have Changed So Much in the Past Decade.” New Distribution, 2024-12-17. https://xinjignxiao.com/en/articles/unexpectedly-consumer-attitudes-have-changed-so-much-in-the-past-decade-3f2ae581/"
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# Unexpectedly, Consumer Attitudes Have Changed So Much in the Past Decade

> Living standards have improved, but what are people's consumption preferences? A brief recall of wages and prices ten years ago confirms the improvement, but by how much? Let's look at the data. Source: China Statistical Yearbook. By the end of 2023, per capita income and expenditure have nearly doubled over the past decade. Remember the Engel coefficient from middle school? It measures the proportion of food expenditure in total consumption, indicating living standards. However, the coefficient has limitations for China, as people have turned survival consumption into enjoyment consumption.

Living standards have improved, but what are people's consumption preferences? As long as we briefly recall wages and prices from ten years ago, there is no doubt that living standards have been rising. But by how much? Let's let the data speak.
Data source: China Statistical Yearbook
By the end of 2023, per capita income and expenditure have nearly doubled over the past decade. Do you still remember a concept from middle school called the Engel coefficient?
It refers to the proportion of food expenditure in total household consumption expenditure, and it is an indicator of living standards. An Engel coefficient above 59% indicates poverty, 50-59% indicates subsistence, 40-50% indicates moderate prosperity, 30-40% indicates affluence, and below 30% indicates the highest affluence. In fact, since 2000, the Engel coefficient for urban residents in China has been below 40%, and since 2012, the coefficients for both urban and rural residents have stabilized between 30% and 40%.
However, the statistical yearbook stopped reporting the Engel coefficient after 2013. For a well-known reason: Engel didn't understand Chinese people. China has so many delicious foods that we have directly turned "survival consumption" into "enjoyment consumption." Let's look at the data on what people across the country love to eat. Based on per capita household grain consumption, let's first look at staple food consumption.
Data source: China Statistical Yearbook
The region that loves staple foods the most is Hebei, with Tibet and Inner Mongolia ranking second and third. Shaanxi, a major carbohydrate province, only ranks eighth. Shanghai residents may really not love refined carbohydrates; Beijing, Tianjin, and Shanghai are the only three regions where per capita household grain consumption is below 100 kilograms. Staple foods don't fully reflect our cuisine; let's see which region loves meat the most.
Data source: China Statistical Yearbook
Chongqing and Guangdong lead the way in meat consumption, truly worthy of being major food provinces. The top-ranked regions are spread across the country, and for each province, you can think of corresponding delicacies.
Sichuan, ranking third, has Qiaojiao beef and beef tallow hotpot.
Jiangxi and Hunan, ranking fourth and fifth, have spicy stir-fried pork with peppers, each with its own flavor.
Hainan, ranking sixth, not only has Hainanese chicken rice but also excellent roast suckling pig. Inner Mongolia, ranking seventh, has boiled lamb and beef that can make you swoon. Digging deeper, each region's food preferences are both expected and surprising. For example, dairy consumption:
Data source: China Statistical Yearbook
The biggest milk drinkers are Inner Mongolians, as it's truly a local specialty. For Shanghai and Beijing, ranking second and third, perhaps office workers who love coffee have boosted dairy consumption with milk-based lattes. Given China's vast territory and our love for food, Engel indeed cannot understand. Since the Engel coefficient is insufficient to represent Chinese living standards, let's look at consumption levels over the past decade. Total retail sales of consumer goods is a relatively good indicator of the consumer market's performance.
Data source: China Statistical Yearbook
From the data, total retail sales of consumer goods have generally risen over the past decade. But there are differences. Total retail sales include both physical consumption and online physical retail sales.
Data source: China Statistical Yearbook
Interestingly, although online physical retail sales are still rising each year, the growth compared to the previous year has clearly slowed. Total retail sales are rising, while online physical retail growth is slowing. We can boldly speculate from the data that physical consumption must be on an upward trend. And this is something you can feel when you go out. Whether in malls or street markets, more people are willing to go out and browse. It's not just about going out; more importantly, people's consumption attitudes seem to be changing. In the past, people might have been frugal and saved money. Now, people are more willing to engage in enjoyment consumption, spending money on things that bring satisfaction. Looking at where people went during recent short holidays can give us a glimpse.
Tourism consumption is growing impressively, but it hasn't peaked yet.
In the past, we often heard about tourism as a big concept, specifically referring to overseas travel, trips to Hong Kong, or visiting scenic spots. Now, the concept of tourism has become very accessible, both domestically and internationally. For domestic tourism,
You can do reverse tourism to a nearby county, or save up your vacation days to lie on a beach for two days.
Although tourism has almost always been a growing industry, when we stretch the timeline, you'll find that changes in consumption attitudes have made tourism consumption data noticeably different. First, look at the number of domestic tourists:
Data source: China Statistical Yearbook
In 2023, domestic tourist numbers nearly doubled compared to 2022. Although this growth is significant, it's also reasonable. Take this year's May Day and National Day holidays; you can probably see a post on your social media saying, "No joke, there are a hundred million people here." The person posting might be in Shanghai, Beijing, or even in Xiaoxitian, Xi County. Not only are traditional tourist cities crowded, but some counties you've never noticed might suddenly become popular during a short holiday. So you saw Zibo barbecue go viral last year, and Tianshui malatang dominate the screen this year. And these achievements haven't peaked yet,
Because according to past data, 2019 had the highest number of domestic tourists. Although tourist numbers haven't fully recovered to their former glory, tourism consumption has been very impressive.
Data source: China Statistical Yearbook
In 2023, per capita domestic tourism spending exceeded 1,000 yuan for the first time. That means on average, each tourist spent 200 yuan more than in 2022. And that's based on a base of over 4.8 billion person-trips. No wonder Harbin, with its enthusiasm, started laying carpets again when winter arrived. Of course, not only is domestic travel rising, but more foreigners are also coming to China.
Data source: China Statistical Yearbook
Since 2018, the number of inbound foreign tourists has been approaching 50 million. Walking on the streets of Shanghai, we can also feel that there are more foreigners. I believe everyone has heard of the 144-hour visa-free transit policy this year, which sparked the "China Travel" craze among foreigners.
Image source: WeChat official account of the National Immigration Administration
In fact, as early as January 2016, China had already implemented a 144-hour visa-free transit policy for citizens of 51 countries in the Shanghai-Jiangsu-Zhejiang region. Starting in 2023, China has successively introduced and restored various visa-free policies, implementing 72/144-hour visa-free transit for a total of 54 countries. The 144-hour window is just right: six days, minus the first and last days, is enough for a leisurely visit to a city. The 144-hour visa-free transit policy, implemented for many years, finally gained momentum this year, attracting a large wave of foreign tourists. However, the statistical yearbook provides a more interesting perspective. In fact, as early as a few years ago, the group of foreigners coming to China had already begun to change.
Data source: China Statistical Yearbook
In 2014, foreigners aged 15-24 accounted for only 7.8% of those visiting China, but by 2019, it had risen to 14%, nearly doubling again. This shows that more and more young foreigners are getting to know China. It is precisely for this reason that "China Travel" short videos have exploded on foreign social media. Boldly guessing, 15-24 is the perfect time for foreigners to take a gap year, and China's 144-hour non-member trial experience is just enough for foreigners to see the real China. However, it's not just foreigners who find China fresh and unfamiliar. Growing up in such a large population, sometimes our own daily consumption behaviors can also give rise to an industry.
There are more unexpected consumption patterns. In fact, many consumption activities happen right around us and are closely related to us.
For example, chain restaurants tied to our three meals a day: office workers have a coffee in the morning and order takeout at noon, a common rhythm. Chain restaurants occupy almost every day of our lives.
Data source: China Statistical Yearbook
Therefore, the number of chain restaurant stores nationwide has risen from over 20,000 in 2014 to over 60,000 in 2023, nearly tripling. This isn't even the most dramatic rise. Think back over the past decade in the restaurant industry. Besides regular meals, what else has emerged in our lives? My first thought is milk tea.
Data source: China Statistical Yearbook
Data shows that the number of beverage and cold drink service stores has nearly increased tenfold from 2014 to 2023. Indeed, you can see young people holding milk tea everywhere on the streets.
There's even milk tea socializing: colleagues buy a cup of milk tea to express gratitude, and people who can drink milk tea together are more likely to become good friends.
New tea drinks have also been developing rapidly in recent years.
This year, Chagee leased a 9-story commercial building with an area of nearly 15,000 square meters in Changning District as its headquarters, and this is in addition to its existing Chengdu headquarters, establishing a dual headquarters in Shanghai. Moreover, the price of a cup of milk tea has now become a unit of measurement.
Of course, a cup of milk tea can not only buy a cup of milk tea but also a lottery ticket. Lottery consumption also shows a different trend. We often hear that young people love buying lottery tickets; let's look at the real situation from the statistical yearbook:
Data source: China Statistical Yearbook
Welfare lottery sales in 2023 have already exceeded those in 2019. This is only welfare lottery, not including sports lottery. According to the latest data from the Ministry of Finance, from January to July 2023, the national cumulative lottery sales were 322.804 billion yuan, while in the same period in 2022, it was 213.434 billion yuan.
Data source: Ministry of Finance
That is, an increase of 109.371 billion yuan year-on-year, a growth of 51.2%. In 2023, lottery sales in seven months were more than half higher than the same period in 2022. So, you might inadvertently see many people gathered around scratch-off tickets in malls. Sometimes there are so many people that you have to queue to buy lottery tickets. Most of those joining in are young people, and they like to go in groups, such as friends shopping together or couples dining out. Interestingly, young people who love buying lottery tickets are actually a very clear-headed group. They not only don't get addicted but have turned lottery into a new form of socializing. They stroll through the mall with friends, have a meal, and buy a scratch-off ticket together. With simple consumption, they buy five minutes of spiritual sustenance.
There's a joke online that the older generation "suffers without need," while today's young people "enjoy blessings without need." In any era, the fundamental driver of consumption is the longing and aspiration for a better life. So you'll find that today's consumption concepts are rich and varied, and consumption demands are increasingly diverse. Precisely because the abundant consumer market can support them. And when we all have enough confidence, consumption is actually a natural thing. What we need to do is simply choose the most suitable option from the myriad choices.


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## Citation metadata

- Publisher: New Distribution
- Author: 真叫卢俊团队
- Published: 2024-12-17
- Canonical: https://xinjignxiao.com/en/articles/unexpectedly-consumer-attitudes-have-changed-so-much-in-the-past-decade-3f2ae581/
- Original source: https://mp.weixin.qq.com/s/UY1EWUw_CFHCu1ybbo-tIA

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