Experiential, it's a thing

Some financial analysts argue that the Chinese consumer market has slowed down, but Qin Shuo, a Shanghai-based financial commentator, explained that this is only one side of the coin.

In certain situations, consumers see value-for-money purchases as the priority. However, when it comes to experience or sentiment-related consumption — such as travel or raising pets — they spend generously.

A "K-shaped" economy, where growth and decline are taking place simultaneously across different segments, has been used to describe the current Chinese consumer market.

But Qin believes that is an oversimplification of the bigger picture. It is true that the consumer price index has not been rising significantly, he said, but that is a reflection of prices, not the size of consumption. In addition, low prices are a result of strong supply, he said.

A more important factor is the maturity of Chinese consumers, who are looking for "high-quality and fair shopping experiences", according to Qin.

Online retailers, for example, have made products once only sold in first-tier cities available to consumers in lower-tier cities and counties.

Lu of Bain & Co said the current maturity of Chinese consumers should be measured against the development of consumerism in the country over the last five decades.

Before the 1980s — which was the age of scarcity of goods — consumption was all about "having it or not". Brands barely mattered. The market was driven by supply, which meant that if a company could make the product, someone would definitely buy it, Lu said.

Entering the 1990s, Chinese consumers began to tell the world who they were with what they had bought.

Between 2000 and 2010, there was an abundance of supply and Chinese consumers shopped for products to fit their taste, style and identity. Self-expression was the key reason for consumption during this period, Lu said.

"Chinese consumers now have a 'value awakening'," she said.

"More and more consumers are willing to pay for emotional value and spiritual satisfaction. Consumers are no longer buyers. They wish to express their emotions, seek out experiential scenarios, participate in culture and even co-create brand stories with each purchase," she said.

"All these demands have posed higher requirements on brands, pushing them to come up with deeper insights into human nature and more refined crafting of experiential settings," she added.