'Upgrading in Progress'China Consumer Trends

1.Consumers are still

confident but undergoingtransformation

$25 billion in sales

$1 billion in transactions per hour

Increased by 40% (YoY)

China's Consumer Confidence Index

Data Source: National Bureau of Stastistics of China

Household Debt

Income Growth

Real Estate Price

Healthcare

Tier 2-3 Cities

Tech-driven'New Retails'

2.Consumers are living

healthier & more environmental friendly

lives

65% of the people are seeking to lead a healthier lifestyle

73% of the people feel guilty about lifestyles that damage the

environment

80% of the people believe that good companies & brands should be environmentally responsible

What do consumers value in your product?

Safety: 63%

Healthy: 58%

Practical: 57%

Environmental-Friedly: 52%

Novel & Unique: 40%

High-End: 38%Data Source: China Consumer Confidence Survey

Un-healthy

Bio

Indifferent

Active

Chemical

Natural

Petrol

Electric

3.The 'Post-90s' are

becoming the driving force for consumption

16% of the Chinese population today.

Will account for more than 20% of the consumption growth between now and 2030.

'Digital Natives' -73% made purchases online

'Post-90s' are more open to trade up and to try new things

90s 80s 70s

44%

31%

25%

52%

29%

19%

50%

29%

21%

Try New ThingsBuy BetterBuy More

Data Source: China Consumer Confidence Survey

The 'Post-90s'

ZhihuKnowlege sharing

platform

BilibiliVideo & livestreaming

platform

DoubanCommunity of interests

WeiboSimilar to Twitter

DouyinShort video platform

WeChatWith social features similar to Facebook

Social media that help to connect with the 'Post-90s'

4.A blurred line between local & foreign brands In 2012, Chinese brands

accounted for 43 percent of themarket in personal digital gadgets

versus 63 percent in 2017.

In personal care, Chinesebrands made up 76% of the market in 2017 compared with

61% in 2012.

Consumers' preference for local vs. foreign brands

Data Source: Mckinsey Co.

9%

Foreign Local91%Fresh Food

15% 85%Beer

19% 81%Personal Care

24% 76%Apparel & Footwear

42%Fahsion Accessories 58%

49% 51%Color Cosmestics

Be local for the local market

Example: BMW's localized visuals combine its futuristic car with elements from traditional Chinese painting and caligraphy and a

slogan that is truly localized.

About Us

BlueFocus is one of the most recognized communications services group originated in China, employing 5,000 employees globally working in 100

offices in more than 10 countries.

The company provides a wide spectrum of marketing and brand management services across disciplines of Strategy, Digital, Advertising, Media, Social, PR, Design, Branding, CRM, Data, E-Commerce and

Mobile Solutions.

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