(Yicai) Nov. 12 -- Chinese consumers' growing use of AI, rational spending habits, and priority put on health are reshaping the domestic consumer market, according to a new survey by Accenture Song, part of global management consulting giant Accenture.

The Chinese market exhibits two major characteristics: "rational upgrading" and "demand reconstruction," according to a report on its findings the marketing services provider published yesterday.

The survey involved 5,000 consumers aged 18 to 65 across tier-one through tier-five Chinese cities, revealing significant shifts in consumer mindset and behavior compared to Accenture Song's 2021 research.

"Chinese consumers are pursuing a more stable, autonomous, balanced and fulfilling life," Christine Wang, managing director and lead at Accenture Song China, said at a media briefing in Shanghai on Nov. 10. "Companies need to have clear value propositions, establish emotional connections with consumers in real-life scenarios, and leverage AI to optimize experiences to win loyalty in this era."

AI in Consumer Decision-Making

AI's penetration into the lives of consumers is exceeding expectations, Accenture Song noted, adding that 77 percent of respondents use AI tools on a daily or weekly basis, with the share reaching 57 percent even among those born in the 1960s.

Some 37 percent of consumers shop using AI tools, excluding AI assistants on e-commerce platforms. For example, 67 percent use them for help with unfamiliar categories or fields and 59 percent to quickly compare different brands or models.

The emergence of DeepSeek during this year's Chinese New Year, along with AI's ability to rapidly bridge knowledge gaps, accelerated the adoption of the technology, Wang pointed out.

Fifty-seven percent of consumers use AI tools as an important source of inspiration for exploring new solutions or improving their lives, surpassing video, sharing, e-commerce platforms, and consultations with family and friends. In addition, 65 percent see AI as an advisor, 63 percent as an assistant, and 46 percent as a companion.

Elderly people also welcome AI models like Doubao, because they allow them to use voice communication to receive information without having to type, said Deng Ling, senior principal of Accenture Research.

Rise of Chinese Brands Through Rational Consumption

Chinese brands are on the rise thanks to consumers' rational consumption, with the proportion of those prioritizing domestic beauty and skincare brands jumping to 43 percent from 12 percent in 2021, electronics brands to 55 percent from 23 percent, and home appliances brands to 69 percent from 33 percent, the report said.

However, foreign brands still maintain advantages in certain markets. Among consumers in tier-one cities, more than half still prefer such consumer electronics brands, especially in high-ticket categories like smartphones. Over half of high-income consumers also favor foreign brands in beauty and skincare.

Some 85 percent of the respondents cited the high price-performance ratio among the top reasons they pick Chinese brands, with 70 percent picking distinctive product features and 55 percent selecting emotional value and cultural confidence.

The price-performance ratio is no longer just about being cheap, but rather something that is "verifiable," according to Wang.

The survey shows that 55 percent of respondents frequently compare multiple brands even when they have a favorite, up from 42 percent in 2021. In addition, 46 percent are indifferent and 22 percent dislike marketing content.

"Consumer demands are differentiated and dynamic, and they trust their own judgment more," Deng pointed out. "The power of influencer and blogger recommendations and celebrity endorsements declined by three percentage points and five percentage points."

Information gathering channels are also shifting, with 60 percent of consumers choosing e-commerce websites as a source, half preferring livestreaming rooms and video platforms, and 41 percent favoring social sharing platforms. The share of brick-and-mortar stores as information channels fell 10 points from 2021, but more than half of respondents still prefer a combination of online and offline experiences.

Health Priority

The share of consumers prioritizing health rose to 87 percent from 78 percent in 2021, while wealth awareness jumped to 47 percent from 35 percent.

"People born in the 1990s and 2000s showed the most significant increase in emphasis on wealth and health, while their focus on love, personal growth, and friendship fell," Deng noted. "This trade-off is very obvious, and it's not that they don't value these, but because they feel too anxious and uneasy about their lives, they suppress such needs."

Those born in the 1970s and 1980s face rising workplace uncertainty and have turned to directly pursuing wealth itself, while people born in the 1960s have shifted focus toward wealth accumulation and personal hobbies.

Facing New Trends

Brands should refine their positioning, offer "justified premiums" through innovation and emotional resonance, integrate into daily life rather than rely on one-way marketing, and embrace AI tools such as generative engine optimization to face the new AI adoption, rational consumption, and health prioritization trends, according to the report.

Wang suggests that brands can refresh website content and tailor titles to target audiences on authoritative platforms.

Brands are no longer just product providers but partners in consumers' pursuit of a better life, the report said. Only by truly entering consumers' life scenarios and providing precise responses across "value supremacy, emotional connection, and intelligent drive" can they win trust and growth in the rationality era.

Editor: Martin Kadiev