(Yicai) Nov. 6 -- The consumer landscape in China, a market of paramount importance to Nestlé, is evolving, with the rise of the "emotion economy," represented by the success of Pop Mart International Group's Labubu toys, the best example of a change where new growth is shifting from driving distribution to creating demand, according to the chief exectuvie of the Swiss food giant's country arm.

The Chinese consumer market is vastly different from what it was before the Covid-19 pandemic, Kais Marzouki said at the eighth China International Import Expo today. Consumers' health awareness has significantly increased, pursuing products with higher cost-effectiveness and having more convenience requirements, with their behavior becoming more pragmatic and rational, he noted.

In addition, consumers crave "emotional value," demonstrated by the popularity of Labubu, as they are willing to pay for products that bring emotional resonance and personalized experiences, Marzouki pointed out.

In addition, the complexity of consumption channels in China is constantly increasing, according to Marzouki. One Chinese consumer may use as many as 12 different channels in a year, and given that they are accustomed to comparing different price options, maintaining orderly synergy across various channels has become a significant challenge for all fast-moving consumer goods companies, he noted.

Nestlé's revenue rose 3.3 percent to CHF65.9 billion (USD81.4 billion) in the nine months ended Sept. 30 from a year earlier, but its income in China fell 6.1 percent, according to its financial report.

The rapid changes and immense scale of the Chinese market also present enormous opportunities, Marzouki said. The silver economy, pet economy, and health and wellness products all usher in new opportunities, he added.

According to a Nestlé survey, China's population aged 60 and above has more disposable income, so figuring out how to create tailor-made health products for Chinese consumers can tap into the immense potential of the silver economy, Marzouki pointed out.

Nestlé made significant management changes this year, replacing both its CEO and chairman, while Marzouki only stepped in as CEO of Nestlé China on July 1.

Editor: Martin Kadiev