No. 3: Retail Goes Automated
In 2017, urban consumers were treated to automated retail experiences in smart stores such as BingoBox and EasyGo, which were outfitted with technologies like facial recognition, computer vision and frictionless payment methods. In many ways, China is at the vanguard of this still-emerging trend. Alibaba recently released footage of its "car vending machine," which use a combination of a mobile app, an unmanned garage, facial recognition technology, and consumer data to automate and simplify the car shopping experience.
No. 4: Consumers Upgrade
Increased wealth among consumers meant that they are often willing to pay up for product upgrades, superior experiences and new product categories. New experience seekers have helped drive 10% annual growth in the leisure sector since 2011 according to OC&C Strategy Consultants, benefiting service providers like cruise ship companies and theme parks. But the trend can also be seen in other consumer habits. For example, there was a threefold increase in the number of craft breweries in China during 2016, according to the Economist.
No. 5: Paying Up for Premium Digital Content
More than ever, consumers in China are willing to pay for premium digital content. According to JPMorgan Chase, the number of pay subscribers on the country’s video-on-demand (VOD) services—a sector led by iQiyi, Tencent Video, and Youku Tudou—will expand from 144.0 million this year to 234.3 million by 2020. The desire among platforms to provide premium digital content has led to a fight among them for exclusive streaming rights. In one reflection of the trend, Youku recently signed licensing deals with NBCUniversial and Sony Pictures Television to provide their content libraries to Chinese consumers.