'Emotional resonance' driving big changes in Chinese consumption sector

China's consumption market and economy is expected to see resilience and structural changes this year as the nation's consumers demand more "emotional resonance", according to a report released by consultancy Roland Berger on Thursday in Shanghai.

At the launch ceremony of the company's seventh annual flagship report, "Foresight 2026: Roland Berger China Annual Trends Report", experts highlighted the profound changes in the nation's consumer goods and retail industry.

The focus of industry competition has shifted from fighting for market share to creating meaning, from reaching audiences to managing user lifetime value. Consumers are no longer satisfied with products alone, but are seeking emotional resonance, identity affirmation, and lifestyle solutions, the report said.

Kathy Jiang, partner and chief researcher of consumer goods and retail at Roland Berger, noted at the launch ceremony that China's domestic consumption structure is rapidly shifting from survival-oriented to development and experience-oriented. Additionally, the consumer market is undergoing a macro transition from material fulfillment to spiritual satisfaction.

China is still in the early stage of the emotional economy. Consumer behavior is strongly oriented towards self-pleasing, emphasizing spiritual satisfaction and individual expression. It is manifested in the rise of products symbolizing emotional attachment, such as trendy blind boxes and guochao (Chinese chic) cultural creative products.

The report summarizes five major trends among Chinese consumers: highlighting consumer satisfaction, emotional experience, customized services for individuals, community engagement, and identity recognition. It indicates that the future consumer retail ecosystem in China will be reconstructed around four dimensions: mindset, mood, community, and co-creation.

As consumers' mindsets are increasingly being formed through fragmented processes, brands must engage in multidimensional communication campaigns. Omnichannel integration must deliver a light-hearted and enjoyable shopping journey. Value resonance will drive brands and consumers to co-create emotion-oriented communities, and the customized co-creation will become the key for consumers to express uniqueness, according to the report.

Jiang also highlighted the emergence of Eastern aesthetics as a critical breakthrough in the luxury industry. China's luxury industry is undergoing a profound transformation, shifting from rapid expansion to more rational development. In international markets, Chinese luxury brands are carving out a new path within the Western-dominated luxury landscape, featuring cultural storytelling and philosophies such as "harmony between man and nature", as well as the differentiated identity through natural and geological aesthetics.

"Chinese products, in my Western eyes, are not always fundamentally innovative, but they have a unique combination of functionality, density of technology, cost advantage, quick adaptation, and more," Denis Depoux, global managing director of Roland Berger, said. "That's what makes them attractive to both Chinese and foreign consumers."

He added that Chinese consumers seek value for money. It is not only about the product price and quality, but also about the service, experience, and the emotional value. "Understanding the shift is key for multinational companies selling consumer products in China, which is something of a revolution."