AI Transforms China's Consumer Market: Smarter Spending & Health Focus, Accenture Song

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Chinese consumers are increasingly utilizing artificial intelligence, practicing more rational spending habits, and prioritizing health, fundamentally transforming the local consumer landscape. A recent survey conducted by a leading marketing services firm, encompassing 5,000 individuals aged 18 to 65 from various Chinese cities, highlights two main trends: “rational upgrading” and “demand reconstruction.” These shifts mark a notable departure from consumer behaviors observed in 2021.

According to insights shared during a briefing in Shanghai, consumers are seeking stability, independence, balance, and fulfillment in their lives. Companies aiming to thrive must clearly communicate their value propositions, forge emotional connections in real-world scenarios, and leverage AI to enhance customer experiences, thereby fostering loyalty amid these changing preferences.

AI’s presence in everyday life surpasses expectations, with 77% of respondents using AI tools regularly, and even among those born in the 1960s, 57% engage with AI at least weekly. About 37% of consumers shop with AI tools, including help navigating unfamiliar categories or comparing products swiftly. The rapid adoption of AI has been accelerated by innovations like DeepSeek during recent holidays and its capability to quickly fill knowledge gaps.

The survey reveals that 57% of consumers regard AI as a vital source of inspiration for discovering new solutions or enhancing their lives, outperforming social media, e-commerce, and personal consultations. Additionally, 65% see AI as an advisor, 63% as an assistant, and 46% as a companion. Older adults, in particular, favor voice-activated models like Doubao, which enable hands-free communication and information access.

Thanks to a more rational approach to consumption, Chinese brands are gaining strength, with significant increases in preference for domestic beauty and skincare, electronics, and home appliance brands—rising from 12%, 23%, and 33% in 2021 to 43%, 55%, and 69%, respectively. Nonetheless, international brands maintain their footholds in certain high-end markets, especially in electronics and personal care, where over half of consumers in top-tier cities prefer foreign brands. The primary factors for choosing domestic brands include an excellent price-performance ratio (85%), unique product features (70%), and emotional or cultural appeal (55%). The concept of value now emphasizes verifiable benefits rather than just affordability.

Consumers are also more diligent in comparing brands, with 55% frequently evaluating multiple options even if they have favorites, a jump from 42% in 2021. Trusting personal judgment has become more prominent as the influence of celebrity endorsements and influencer recommendations diminishes slightly. Their sources of information are shifting toward online platforms—60% turn to e-commerce sites, half to live streaming and videos, and 41% to social sharing platforms. Offline shopping remains relevant, with more than half combining online and physical experiences, even though traditional stores have slightly declined in importance as information sources.

Health has become a top priority, with 87% of consumers emphasizing wellness, up from 78%, and wealth consciousness increasing from 35% to 47%. Younger generations, notably those born in the 1990s and 2000s, are especially focused on health and wealth, often prioritizing these over love, personal development, and friendships—an effect driven by increased anxiety and societal pressures. Meanwhile, those born in the 1970s and 1980s are more affected by job market uncertainties and are focusing directly on wealth, while individuals from earlier generations concentrate on wealth building and hobbies.

To remain competitive amid these trends, brands need to refine their positioning, offer justified premium products through innovation and emotional resonance, and integrate into daily life rather than relying solely on one-way marketing. Embracing AI tools, such as generative engines for content optimization, can help brands adapt to the new landscape of AI adoption, rational consumption, and health consciousness. Updating website content and customizing messaging for specific audiences on authoritative platforms are recommended strategies.

Ultimately, brands are evolving from simple product providers to partners in consumers’ pursuit of a better life. Genuine engagement with consumers’ daily scenarios and delivering precise, value-driven, emotionally resonant, and intelligent responses are key to building trust and growth in this era of rationality.