So who is driving consumer behavior?

Retirees, students and shoppers share their views on the explosion in China's buying power

Laura Lian says Chinese consumers often display erratic consumer behavior because they are only just coming to terms with the concept of brands.

The 25-year-old entrepreneur, who blogs on modern Chinese culture, insists there has been something of a revolution in a relatively short time.

"Most Western brands have entered China over the past 15 to 20 years and they are all fairly new to us," she says.

Lian, who was out shopping at The Place shopping center in Beijing's Central Business District, which boasts the city's only Marks and Spencer, says that even she, despite her relatively young age, was not aware of brands until she moved from her home area near Songyuan in Jilin province in the northeast of China, to Beijing, where she started university in 2008.

"I was brought up in an environment where we went to buy vegetables and fruits at the local market and very little of what we bought had any kind of branding. When I moved to the big city I became aware of H&M, Zara and Gap. I had never really heard of them before."

She believes many consumers are experimenting with living a modern lifestyle for the first time, and that is why many of their choices might be seen as less rational than the more conventional and established behavior of Western consumers.

"All of a sudden, everybody has money and they don't know how to use it. Young people want to behave like Westerners because the older people don't know how to live a modern life because the Chinese economy has grown so fast in 20 years."

Feng Shuxia, 61, who was out browsing with her husband, Tian Shunsheng, also 61, agrees it is the younger generation that is driving consumer behavior.

The couple's 35-year-old daughter, who works for a bank, has bought Feng a Louis Vuitton and two Gucci handbags in recent years.

"I don't know how much they are, but I obviously know they are luxury brands. I wouldn't buy them myself, but my daughter would not be happy if I didn't use them."

The couple say that buying expensive items in China is not a new phenomenon. When Tian, who later also worked for a bank before his retirement, left the army in 1979 he was given 400 yuan in compensation and bought Feng a 270 yuan watch.

"That would be about 20,000 yuan ($3,086; 2,716 euros) today. At the time we were only earning 30 or 40 yuan a month," adds Feng.

Yu Zhipeng, a salesman for an IT company in Beijing originally from Shandong province, believes the Chinese buying behavior that is being picked up in research is deep seated in culture and what might be seen as erratic purchasing is just experimentation.

"You have had an economy that has been growing very fast, and at the same time there has been broader access to foreign stuff," he says.

"Chinese people are probably more keen on face-saving than Western consumers, which means they pay attention to their look, what they wear and what other items they buy such as mobile phones. It has been part of their culture forever."

Zhao Na, 22, a part-time office worker who is studying horticulture at college, is typical of many young Chinese who are particularly attracted to South Korean products.

"I like to buy makeup from South Korea. It is not necessarily a major expenditure. I only tend to spend between 100 and 200 yuan per item," she says.

Zhao admits to being something of a follower of fashion, picking up ideas from various media.

"I tend to follow the mainstream fashion trends online or in magazines. I keep an eye on popular food, clothes and makeup."

Her partner, Rao Xin, also 22 and a horticulture student, believes it is women and not men who are behind some of the volatile consumer behavior in China.

He says his recent major purchases such as the latest Nintendo 3DS games console was just a straightforward choice that a Western consumer of his age and demographic would make.

"This is not just about Chinese. Men and women are different when buying things. We (men) tend to be more reasonable and less emotional than women and certainly less influenced by advertising. If I see something I like, I will decide whether I need it first before buying it."

Feng and Tian, the retired couple, like many Chinese now often make expensive purchases while holidaying abroad, particularly in Europe.

Tian has a Loewe jacket that was bought in Spain in 2013 for the equivalent of 25,000 yuan, which he says would have been 35,000 yuan in China. He also spent 50,000 on an Omega watch (75,000 yuan in China) and two Louis Vuitton belts for 2,500 yuan each, which would cost double at home.

"It makes a lot of sense to buy such luxuries as these when abroad because they are far cheaper than they are in China, so you can combine a holiday with making such purchases."

Lian, the cultural blogger, says she is not sure Chinese are so different to Westerners. She had just spent 500 yuan on some Uniqlo jeans and underwear as she found herself with some time on her hands.

"I was just bored. I was in between two meetings, and if I could spend a little money and make myself happy, why not? I suppose you could say the purchase was driven by my emotions, if you want. It is essentially retail therapy."

Contact the writers at andrewmoody@chinadaily.com.cn and yandongjie@chinadaily.com.cn

(China Daily European Weekly 04/08/2016 page8)