For Chinese consumers have saved up a lot of cash during the pandemic By IFX

Consumers in Chinese cities are increasing their savings despite economic hardships and are increasingly choosing local brands when shopping, according to a new McKinsey report.< /p>

McKinsey China's nationwide survey was conducted last summer and surveyed more than 6,700 Chinese consumers.

While Chinese consumer confidence was at its lows, almost half of respondents were optimistic about the economic recovery China after the pandemic. Respondents in similar surveys in India and Indonesia were even more optimistic, while respondents in developed markets, including the US and Germany, were much more pessimistic.

Investors betting on China's growth are hoping that the so-called pent-up demand situation will allow spending to rise as economic activity gradually recovers.

Households in Chinese cities have increased their savings, with 58% of respondents saying they want to save money for a rainy day, which is the highest since 2014. The volume of savings accounts increased by 14 trillion yuan ($2 trillion) in January-September of this year, according to McKinsey.

Consumers still prefer premium brands to mass-market, while an increasing number of consumers prefer Chinese brands. According to McKinsey experts, this may become a problem for foreign brands that previously dominated the market.

At the same time, interest in local brands is not associated with the search for better purchases or nationalist sentiment, but rather due to improved quality and innovative technologies of Chinese brands, notes McKinsey.

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