Jing Daily: China’s lifestyle trends for 2023

With a desire for a simpler life with more practical consumption, consumers will focus on local communities, self care, de-stressing in nature and a desire to explore in 2023. What can luxury brands do to appeal to this changed market?

Refocusing on community

A renewed appreciation for all things local means that Chinese consumers are more invested in their direct communities and neighbourhoods. Posts on the lifestyle app related to ‘community’ and ‘neighbourhood warmth’ increased by +213% year-on-year in 2022 — a year marked by multiple difficult lockdowns across China where populations were restricted to staying indoors or within close neighbourhoods.

“I think brands need to be more mindful in their storytelling so as to create the emotional bonding with their target customers more than ever before,” says Vanessa Wu, Europe Director of branding and communications agency Gusto Luxe.

“The market, especially younger consumers on social channels like Xiaohongshu, do care more about the community, a sense of the local, as well as self care, and mental wellbeing, as concluded by Xiaohongshu.”

It’s no surprise that community eateries and coffee shops boomed last year, as they became ‘miniature third spaces’ for daily interactions between residents, the report points out. For 2023, this reengagement with what’s going on close to one’s doorstep is sure to set the market on a hyper-localisation drive.

Brands should bear this in mind when seeking to engage clientele and fans from different provinces, cities and neighbourhoods. The Xuhui area in Shanghai is distinctly different from Beijing’s student-heavy Wudaokou district and Chengdu’s Yulin. Experts like Wu agree that local communities are now a true emotional locus for many, so brands should bear this in mind for activations, campaigns and launches.

The appeal of a ‘simplified life’

With most finding that “it’s a case of unlimited products but limited incomes,” people’s consumption habits have become more rational according to Xiaohongshu. Many Chinese citizens are now pursuing ‘a simplified life’ that is practical and clearly goal orientated,” with the number of related posts in 2022 increasing by +242% from 2021.

This trend is likely to lead 2023 as consumer sentiment calms and becomes more thoughtful and less influenced by conspicuousness, impulse buying and hype.

Before this sends the luxury industry into a panic, it “doesn’t mean that the Chinese are moving away from luxury brands,” argues Wu, “as luxury brands do still have ‘dream value’ for the general public which is beyond the daily necessities on an emotional level.” There are various ways that this shift is seen, fashion has seen a movement towards more relaxed styles and fits signalling a desire for more effortless chic.

Additionally, “People still have disposable income, and still care about hypes, trends, limited edition drops — only if they are interesting,” says Elisa Harca, Asia CEO and Asia co-founder of Gen Z focused marketing agency Red Ant. “There is just more to choose from.”

It becomes ever critical for launches to stand out against the competition this year. “Look at To Summer — the Chinese lifestyle/fragrance brand,” Harca adds. “They are based on weekly drops which always sell out. They are just interesting, good quality and relevant.”

Local fervour

During 2022’s major lockdowns, comfort food and nourishment preoccupied millions. Trends around indoor planting and upgraded ‘light cooking’ spread on social media, explains Harca, and metaphors like “spinach is Hermès” and “cabbage is LV” were trending online. “We saw 12 million views around the topic ‘hydroponic vegetables are happy.’”

Xiaohongshu’s findings show consumer appreciation for authentic local flavours and customs also soared with posts related to ‘eating authentic flavours’ increasing +227% year-on-year.

With trends like Yunnan’s traditional stove-boiled tea (围炉煮茶) gaining viral acclaim across China, authentically localised cultural practices like this are finding broader appeal as part of consumers’ new love for slow living.

What kind of opportunities will this pose for luxury brands and hospitality? Perhaps instead of the luxury English-style high tea collaborations we’ve been seeing from fashion/beauty and luxury hotels, a pivot towards regional Chinese cultural practices and food rituals could bring brands closer to their customers. Branded mooncakes and creative gifting during Mid-Autumn Festival will likely continue to be popular, perhaps with unique localised flavours and cultural references as shown by Louis Vuitton, Marni and Fendi last year.

This is the third consecutive year that Xiaohongshu has released its annual lifestyle trend report, giving insight to a spectrum of China from its huge consumer base. However, the platform’s user demographic is skewed more towards women, millennials and younger, so this should inform market interpretations and brand strategies.

“For luxury brands to ride these 2023 trends, it’s important to highlight or include a few elements in their offerings, like an embodiment of the local culture or products,” says Gusto Luxe’s Wu.

“This not only applies to style but values like sustainability and giving back to the community, and advocating various lifestyles (such as getting active) especially as travel restrictions are being eased.”