The epidemic has rebounded across the country. What changes have occurred in people's income savings and consumption psychology under the influence of the epidemic?

What new forms of actual consumption have emerged among residents?

What are the differences in the purchasing behavior of consumers in epidemic areas and non-epidemic areas?

Wang Qi, Professor of Marketing at CEIBS and Vice Chairman of the Executive Committee of CEIBS-Shui On Global Brand Strategy and Fashion Industry Research Fund, led the team in October 2020, December 2021 and April 2022 (during Shanghai’s lockdown due to the COVID-19 epidemic)

The team collected nearly 5,000 consumer questionnaires nationwide and conducted research around issues such as consumer income and savings, sustainable consumption, experiential consumption and niche hobbies, and new technology consumption.

Investigation Background Since the establishment of the CEIBS-Sui On Global Brand Strategy and Fashion Industry Research Fund, an important goal has been to devote itself to long-term tracking and research on consumers’ consumption psychology, consumption attitudes and consumption behaviors in each specific economic environment.

Since the outbreak of the COVID-19 epidemic in early 2020, the Research Fund has paid close attention to changes in the income, savings and consumption choices of consumers across the country under the epidemic.

01 Consumers generally plan to increase savings to cope with the uncertainty of future expectations. Survey data in April 2022 shows that the proportion of people in epidemic areas who self-reported an increase in personal income is slightly lower than that in non-epidemic areas, 30.24% and 33.41% respectively.

The proportion of people whose personal income has decreased is significantly higher than that in non-epidemic areas, 20.41% and 13.23% respectively.

(See the picture below) Question 1: How has your personal monthly income changed in April 2022?

In addition, for different income groups, the number of people with reduced income in epidemic areas is significantly higher than that in non-epidemic areas.

Whether in epidemic areas or non-epidemic areas, people with higher incomes have a higher proportion of income increases, and people with lower incomes have a higher proportion of income decreases.

Generally speaking, people with higher incomes are less negatively affected by the epidemic, while people with lower incomes are more negatively affected by the epidemic.

(See the picture below) Note: Low income refers to: monthly income of less than 5,000 yuan; middle income refers to: monthly income of 5,000-10,000 yuan; high income refers to: monthly income of more than 10,000 yuan. Question 2: April 2022

, how has your personal monthly income changed?

Judging from the savings ratio (the ratio of total savings to total income) in April, the proportion of people in epidemic areas whose savings ratio increased was lower than that in non-epidemic areas, and the proportion of people who had a decrease in savings ratio was higher than that in non-epidemic areas. This is consistent with the situation in epidemic areas.

The reduction in income is not irrelevant.

(See the picture below) Question 3: How has the ratio of your total savings to total income changed in April 2022?

Regarding savings plans in the third quarter of 2022, nearly 65% ??of respondents expect to increase their savings ratio in the third quarter.

Compared with non-epidemic areas, this group of people accounts for a higher proportion in epidemic areas.

This reflects that more and more consumers will respond to the uncertainty of future expectations by increasing their savings ratio.

As the saying goes, "If you have money in hand, you don't have to panic."