Chinese optimism has improved to the highest level since March. Most Chinese consumers expect their routines and finances to return to normal within three months. These exhibits are based on survey data collected in China from September 16–24, 2020. Check back for regular updates on Chinese consumer sentiments, behaviors, income, spending, and expectations.

1. McKinsey & Company 1
In China, we have seen four consumer behavior trends, some of
which will have a lasting impact, as a result of the pandemic
Up to 50%
growth in consumers
who purchase most or
all online for most
categories
2. Flight to digital
and omnichannel
Up to 10%
consumers (net) say
they will increase their
spend on discretionary
categories
1. Recovered
spending
86%
of Chinese
consumers have
changed stores,
brands, or the way
they shop
3. Shock to loyalty
81%
of Chinese
consumers have
resumed “normal”
out-of-home activities
4. Resuming out-of-
home activities
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old

2. McKinsey & Company 2
Confidence in own country’s economic recovery after COVID-191
Chinese consumers are the most optimistic in Asia and beyond
Unsure: The economy will
be impacted for 6–12
months or longer and will
stagnate or show slow
growth thereafter
Pessimistic: COVID-19 will
have a long lasting impact
on the economy and show
regression / fall into lengthy
recession
Optimistic: The economy
will rebound within 2–3
months and grow just as
strong or stronger than
before COVID-19
UK
Sep 24–27
US
Sep 18–24
Italy
Sep 24–27
Brazil
Sep 21–25
1 Q: How is your overall confidence level on economic conditions after the COVID-19 situation? Rated from 1 very optimistic to 6 very pessimistic.
% of respondents
Source: McKinsey & Company COVID–19 Consumer Pulse Surveys (India 9/18–9/27/2020, n = 1,051; Indonesia 9/21–9/30/2020, n = 1,034; Australia 9/4–9/7/2020, n = 814; Japan 9/22–9/28/2020, n = 1,036;
China 9/16–9/24/2020, n = 1,213; US 9/18–9/24/2020, n = 1,026; Brazil 9/21–9/25/2020, n = 1,058; UK 9/24–9/27/2020, n = 1,083; Italy 9/24–9/27/2020, n = 1,071)
4 10 8
31 26
17 20
37
26
38
32 38
62
52
45
52
47
60
58 58 53
7
22
39
28
17 14
Indonesia
Sep 21–30
Japan
Sep 22–28
India
Sep 18–27
China
Sep 16–24
Australia
Sep 4–7
Recovered spending

3. McKinsey & Company 3
Confidence in own country’s economic recovery after COVID-191
% of respondents
1 Q: How is your overall confidence level in economic conditions after the COVID-19 situation? Rated from 1 “very optimistic” to 6 “very pessimistic”; figures may not sum to 100% because of rounding.
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123; 6/15–6/21/2020, n = 1,249; 5/19–5/25/2020, n = 1,285; 5/5–5/11/2020, n = 1,257; 4/15–4/19/2020,
n = 1,220; 4/8–4/13/2020, n = 1,216; 4/1–4/6/2020, n = 1,896; 3/25–3/30/2020, n = 1,048; 3/20–2/23/2020, n = 1,225; 2/21–2/24/2020, n = 1,249, including Hubei province, sampled and weighted to match
China’s general population 18–65 years old
6% 5% 4% 4% 7% 6% 4%
56% 46% 48%
45% 41%
44%
39%
40% 43%
38%
43%
48% 47%
53% 56%
52%
57% 53% 52%
58%
1% 3%2%
China
Mixed: The economy will
be impacted for 6–12
months or longer and will
stagnate or show slow
growth thereafter
Pessimistic: COVID-19
will have lasting impact
on the economy and
show regression/fall into
lengthy recession
Optimistic: The economy
will rebound within 2–3
months and grow just as
strong as or stronger than
before COVID-19
Recovered spending
In China, consumer optimism has grown to the highest level since
the start of the pandemic
Feb 21–24 Mar 20–23 Mar 25–30 Apr 1–6 Apr 8–13 Apr 15–19 May 5–11 May 19–25 Jun 15–21 Sep 16–24

4. McKinsey & Company 4
1 Q: How long do you believe you need to adjust your routines, given the current COVID-19 situation, before things return back to normal (e.g., government lifts restrictions on events/travel)? Figures may not sum to
100% because of rounding.
2 Q: How long do you believe your personal/household finances will be impacted by the COVID-19 situation? Figures may not sum to 100% because of rounding.
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123; 6/15–6/21/2020, n = 1,249, including Hubei province, sampled and weighted to match China’s general
population 18–65 years old
33%
2–3 months
0–1 month
47%
14%7–12 months
6%
0%
4–6 months
More than one year
6%
23%
37%
24%
6%
4%
No impact
0–1 month
2–3 months
4–6 months
7–12 months
More than one year
Adjustments to routines1
% of respondents
Impact on personal/household finances2
% of respondents
Most Chinese consumers believe that the personal and financial
impact from COVID-19 will be over in less than three months
~80%
believe it will take less
than 3 months before
routines can return to
normal, up from 70% in
the last survey in June
~66%
believe their finances will
be impacted briefly for
another 3 months or
less or not impacted at
all by the COVID-19
situation, up from 41% in
the last survey in June
Recovered spending

5. McKinsey & Company 5
Household income1,2
% of respondents
1 Q: How has the COVID-19 situation affected your (family’s) overall available income, spending, and savings in the past two weeks? Figures may not sum to 100% because of rounding.
2 Q: How do you think your overall available income, spending, and savings may change in the next two weeks? Figures may not sum to 100% because of rounding.
Household spending1,2
% of respondents
June 15–21 September 16–24 June 15–21 September 16–24
Household savings1,2
% of respondents
June 15–21 September 16–24
Reduce slightly / reduce a lot About the same Increase slightly / increase a lot
10%
Past 2 weeks
23%
35%
69%
55%
8%
Past 2 weeks
8%
73%
20%
Next 2 weeks
16%
57%
Past 2 weeksPast 2 weeks
11%
64%
26%
10%
67%
23%
Next 2 weeks
27%
In China, consumers’ income, spending, and savings have stabilized
16%
24%
65%
40%
36%
Past 2 weeks Past 2 weeks
19%
17%
69%
14%
Next 2 weeks
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123; 6/15–6/21/2020, n = 1,249, including Hubei province, sampled and weighted to match China’s general
population 18–65 years old
Recovered spending

6. McKinsey & Company 6
Change in shopping mindset since COVID-191
% of respondents
1 Q: Which best describes how often you are doing each of the following items? Possible answers: “doing less since coronavirus started”; “doing about the same since coronavirus started”; “doing more since coronavirus started”; figures
may not sum to 100% because of rounding.
20%
19%
21%
23%
20%
48%
50%
51%
47%
50%
32%
31%
28%
29%
30%
100%
Changing to less expensive products to save money
Becoming more mindful of where I spend my money
Looking for ways to save money when shopping
Spending time planning / making lists for shopping trips
Researching brand and product choices before buying
Doing about the sameDoing less Doing more
Still, about 30 percent of Chinese consumers continue to be more
mindful of how they spend money
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old
Recovered spending

7. McKinsey & Company 7
Expected spending per category over the next two weeks compared to usual1
% of respondents
1 Q: Over the next two weeks, do you expect that you will spend more, about the same, or less money on these categories than usual? Figures may not sum to 100% because of rounding.
2 Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
3 Not included or insufficient sample (n = < 75) in first survey.
11
7
14
9
15
14
8
12
16
9
6
11
12
22
12
12
8
11
19
18
20
13
13
12
11
21
8
17
15
19
Personal-care products
Tobacco products
Snacks
Quick-service restaurant
Restaurant
Jewelry
Alcohol
Groceries
Food takeout & delivery
Footwear
Apparel
Furnishing & appliances
Accessories
10
10Non-food child products
Household supplies
Skin care & makeup
OTC medicines
10
10
Decrease Increase
Stay the same
13
14
8
16
9
11
18
11
25
21
32
8
8
17
19
9
12
7
13
15
11
21
12
19
12
11
Hotel/resort stays
Books/magazines/newspapers
Vitamins/supplements
Entertainment at home
Out-of-home entertainment
10
Cruises
Consumer electronics
Gasoline
10Pet-care services
Fitness & wellness
Domestic flights
10
3
Personal-care services
Travel by car
4Vehicle purchases
Short-term home rentals
Adventures & tours
International flights
5
2
5
Net intent2Net intent2
+2
+1
+11
+3
+1
+1
-3
+10
+3
+6
+5
+1
-6
+3
+2
+6
-3
+9
-5
+4
-9
+3
+6
+1
+10
+1
-15
+1
-23
-2
-27
+4
+3
+4
Net intent: Above +1
Net intent: -15 to 0
Net intent: Below -15
Change since
first survey
Change since
first survey
Spending has recovered across most categories, with net intent
rising to 40 percent since February and March
-11
-2
+1
+3
+13
+25
+27
+6
+4
+13
+19
-8
-14
-8
+2
+10
N/A3
N/A3
+12
-7
+12
+17
-7
-6
+10
+6
+1
+17
+28
+35
+34
+8
+45
+37
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123; 3/20–3/23/2020, n = 1,225; 2/21–2/24/2020, n = 1,249, including Hubei province, sampled and weighted to
match China’s general population 18–65 years old
Recovered spending

8. McKinsey & Company 8
More people expect to make a portion of their purchases online
post-COVID-19 than before…
Consumers’ use of online channel before and expected use after COVID-191,2
% of respondents purchasing online3
1 Q: Before the coronavirus (COVID-19) situation started, what proportion of your purchases in this category were online vs from a physical store/in person?
2 Q: Once the coronavirus (COVID-19) situation has subsided, tell us what proportion of your purchases in this category you think will be online vs from a physical store/in person?
3 Includes respondents who chose “some online,” “most online,” and “all online.” Respondents who indicated that they have not bought the category online and do not intend to do so in the next two weeks are classified as not purchasing online.
4 Expected growth after COVID-19 compared to pre-COVID-19 slightly lower than previous waves due to respondents reporting higher online activity in pre-COVID-19 situation.
36
78
81
85
53
84
74
54
54
85
83
66
79
85
79
86
86
89
+5
Snacks +2
+2
+7
OTC medicine
Apparel
Household supplies +9
Non-food child products
Alcohol +4
+7Personal-care products
+2Groceries
+0
Food takeout & delivery
+1Vitamins/supplements
-1
+5
Footwear
-1Skin care & makeup
+7
+2Accessories
+1Furnishings & appliances
Jewelry
-1
Consumer electronics
+2
Books/magazines/newspapers
Fitness & wellness
Pre-COVID-19 Expected growth after COVID-19
% growth in customers
purchasing category online
+6%
+12%
+6%
+2%
+8%
+8%
+3%
0%
+2%
-1%
-1%
+2%
+1%
+11%
-1%
+6%
+2%
+9%
Flight to digital and omnichannel
~Up to
10%
growth in consumers
who purchase online for
most categories4
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old

9. McKinsey & Company 9
Consumers’ use of online channel before and expected use after COVID-191,2
% of respondents purchasing most or all online3
1 Q: Before the coronavirus (COVID-19) situation started, what proportion of your purchases in this category were online vs from a physical store/in person?
2 Q: Once the coronavirus (COVID-19) situation has subsided, tell us what proportion of your purchases in this category you think will be online vs from a physical store/in person?
3 Respondents who indicated that they have not bought the category online and do not intend to do so in the next two weeks are classified as not purchasing online.
4 Expected growth after COVID-19 compared to pre-COVID-19 slightly lower than previous waves due to respondents reporting higher online activity in pre-COVID-19 situation.
12
22
29
32
20
29
32
17
23
32
35
40
31
27
34
38
40
40
+6OTC medicine
+29
Food takeout & delivery
Household supplies
Snacks +17
+8Alcohol
+5
+30
Vitamins/supplements
Personal-care products
+6
Skin care & makeup
+8
Groceries
+15
Fitness & wellness
+5
+13Footwear
+15
+7Accessories
+10Furnishing & appliances
+5
+6Non-food child products
Consumer electronics
+10Apparel
+16Books/magazines/newspapers
Jewelry
Pre-COVID-19 Expected growth after COVID-19
% growth in customers purchasing
category most or all online
+46%
+130%
+52%
+52%
+42%
+101%
+18%
+50%
+23%
+40%
+43%
+17%
+31%
+19%
+16%
+14%
+26%
+39%
~Up to
50%
growth in consumers who
purchase most or all
online for most
categories4
…with many consumers planning to shift almost completely online
Flight to digital and omnichannel
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old

10. McKinsey & Company 10
Have you used or done any of the
following since COVID-19 started1
% of respondents
1 Q: Have you used or done any of the following since the COVID-19 situation started? If yes, Q: Which best describes when you have done or used each of these items? Possible answers: “just started using since COVID-19 started”; “using more
since COVID-19 started”; “using about the same since COVID-19 started”; “using less since COVID-19 started.”
2 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase
this.” Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
28%
32%
6%
11%
10%
16%
6%
6%
6%
12%
8%
24%
33%
8%
7%
8%
8%
8%
6%
6%
5%
13%
6%
5%
5%
4%
Store curbside pickup 81%
80%
2%
Used a new store/restaurant app
2%
Purchased pre-owned products
82%
88% 5%
79% 3%Purchased directly from social media
Used deal-finding plug-ins
Restaurant delivery
84%
43%
3%
Grocery delivery
Meal-kit delivery
Restaurant curbside pickup
22%
In-store self-checkout
75%
2%
82%
82% 1%Buy online for in-store pickup
Not using
Just started using
Using more
Using same/less
Intent to
continue,2 %
64%
44%
55%
91%
60%
66%
49%
54%
55%
56%
58%
Flight to digital and omnichannel
Many Chinese consumers have acquired new habits during
COVID-19, especially in grocery delivery and restaurant delivery
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old

11. McKinsey & Company 11
45
40
95
10
0
0
20
50
30
10055 60 7065 75 80 85 90
In-store self-checkout
Purchased from social media
Restaurant curbside pickup
Meal-kit delivery
Restaurant delivery
Grocery delivery
Buy online for in-store pickup
Store curbside pickup
New store/restaurant app
Purchased pre-owned products online
Deal-finding plug-ins
Intent to use after COVID-191
Percent of new or increased users who intend to keep doing activity after COVID-19
UsergrowthsinceCOVID-192
1 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase this.”
Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
2 User growth is calculated as % of respondents who replied that they are new users over % of respondents who replied that they were using the product/service pre-COVID-19 (using more, using the same, or using less).
Flight to digital and omnichannel
Many consumers intend to continue some of their new digital habits
even after the COVID-19 crisis is over
Potentially here to stay
Works for now
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old

12. McKinsey & Company 12
Have you used any of the following since COVID-19 started1
% of respondents
Most Chinese consumers have tried a new shopping behavior, and
many intend to continue usage beyond the COVID-19 crisis
1 Q: Since the coronavirus (COVID-19) situation started (i.e., in the past ~3 months), which of the following have you done? 23% consumers selected “none of these.”
2 Q: Which best describes whether or not you plan to continue with these shopping changes once the coronavirus (COVID-19) situation has subsided? Possible answers: “will go back to what I did before coronavirus”; ”will keep doing both this and
that I did before coronavirus”; ”will keep doing this and NOT go back to what I did before coronavirus.” Intent to continue includes respondents who selected “will keep doing both this and what I did before coronavirus” and “will keep doing this and
NOT go back to what I did before coronavirus.”
3 “New shopping method” includes curbside pickup and delivery apps.
34%
32%
26%
26%
24%
New shopping method 3
New digital shopping method
Different brand
Different retailer/store/website
Private label/store brand
Intent to
continue2
75%
81%
76%
72%
76%
86%
Consumers have tried
a new shopping
behavior
Shock to loyalty
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old

13. McKinsey & Company 13
Convenience is the primary driver for trying new places to shop
Reason for shopping at a new retailer/store/website in the past three months1
% of respondents selecting reason in top three
1 Q: You mentioned you shopped from a new retailer/store/website since the coronavirus (COVID-19) situation started. What was the main reason you decided to try this new retailer/store/website? Select up to 3.
32%
25%
21%
9%
25%
25%
9%
16%
15%
22%
20%
10%
3%
Offers good delivery/pickup options
Can get all the items I need from one place
Less crowded / has shorter lines
Better shipping/delivery costs
More easily accessible from my home
Better value
Better prices/promotions
Better quality
Offers natural/organic options
Products are in stock
Cleaner / has better hygiene measures
Supporting local businesses
The company treats its employees well
Convenience
Health/hygiene
Availability
Purpose-driven
Quality/organic
Value
x% Net % of respondents per
category
48%
66%
32%
22%
20%
13%
Shock to loyalty
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old

14. McKinsey & Company 14
Value is the primary driver for trying a new brand
Reason for trying a new brand in the past three months1
% of respondents selecting reason in top three
1 Q: You mentioned you tried a new/different brand than what you normally buy. What was the main reason that drove this decision? Select up to 3. “Brand” includes different brand, new private label/store brand.
Quality/organic
Value
Convenience
Health/hygiene
Purpose-driven
x% Net % of respondents per
category
36%
66%
26%
24%
19%
11%
Shock to loyalty
36%
30%
18%
4%
22%
17%
19%
9%
24%
19%
11%
Better value
Better prices/promotions
Better shipping/delivery costs
Larger package sizes
Better quality
Is natural/organic
The company treats its employees well
Supporting local businesses
Cleaner / has better hygiene measures
Products are in stock
Is available where I’m shopping
Availability
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old

15. McKinsey & Company 15
Consumers buying based on company behavior1
% of respondents
1 Q: Which best describes how often you are doing each of the following items? Possible answers: “doing less since coronavirus started”; “doing about the same since coronavirus started”; “doing more since coronavirus started.”
Figures may not sum to 100% because of rounding.
Consumers are paying more attention to healthy and hygienic
packaging and how companies treat their employees
5%
8%
9%
22%
22%
52%
62%
63%
57%
58%
42%
30%
28%
21%
20%Retailers promotion of sustainable solutions
Company’s purpose/values
Healthy and hygienic packaging
How companies take care of the safety of their employees
Sustainable/eco-friendly products
100%
Doing less Doing about the same Doing more
Shock to loyalty
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old

16. McKinsey & Company 16Source: McKinsey 2020-21 Global Sentiment Survey
Compared to last year, Chinese consumers are simultaneously
trading down and trading up more in a standard basket of goods
Trade off behavior in a standard shopping basket
Percent, Sep 2020 and Sep 2019
3
11
21
28
4.0x 1.3x
Trade down Trade up
2019
2020
4 21 2
12
17
34
3
11
30
26
China income tiers, household, monthly
> RMB 11,000RMB 6,200-10,999< RMB 6,200
1 Q: Please indicate how your buying behavior has changed in a standard shopping basket for the items shown in the past 12 months (since September 2019). Possible mutually exclusive answers: “Switching to less expensive brands”; “Buying
the same brand as I bought 12 months ago, but at stores with lower prices”; “Buying only when on sale or with coupon”; “Buying less frequently of lower quantity of the same brand”; “Switching to more expensive / premium brands”; “Have made
some other change in how I buy these products”; “Have not made changes in how I buy these products”
2 Base for trade off behavior is consumers who have changed behavior
3 Insufficient sample size
N/A3

17. McKinsey & Company 17
Milestones for the Chinese population not yet engaging with out-of-home activities1
% of respondents awaiting each milestone before engaging
Only about 20 percent of Chinese consumers are avoiding ‘normal’
out-of-home activities as they wait for further lifting of restrictions
1 Q: Which best describes when you will regularly return to stores, restaurants, and other out-of-home activities? Chart rebased to exclude those already participating in these activities and those who do not deem any of these items important.
Figures may not sum to 100% because of rounding.
83
4
12
Government lifts
restrictions + other
requirement
Only once there’s a
vaccine or treatment
Government lifts restrictions
Medical authorities deem safe 35%
Stores, restaurants, and other indoor
places start taking safety measures 28%
I see other people returning 20%
Government lifts restrictions and…
19%
of people are not
currently engaging
in “normal” out-of-
home activities,
down from 59% in
the last survey
Resuming out-of-home activities
<1% of Chinese consumers
will not engage in “normal” out-
of-home activities until there is a
vaccine or treatment (consistent
with <1% in the last pulse
survey)
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123; 6/15–6/21/2020, n = 1,249, including Hubei province, sampled and weighted to match China’s general
population 18–65 years old

18. McKinsey & Company 18
Most Chinese consumers are not concerned about the safety of regular
out-of-home activities; worry about air travel lingers
Consumers’ level of concern undertaking various activities1
% of respondents
1 Q: How worried would you be if you were to do the following activities in the next two weeks? Possible answers: “not worried at all”; “not very worried”; “somewhat worried”; “very worried”; “extremely worried.”; figures may not sum to 100%
because of rounding.
2 Level of concern is calculated by subtracting the % of respondents stating they “not worried at all” and “not very worried” from “very worried” and “extremely worried.”
Level of concern2
9
-22
-27
-28
-40
-31
-42
-60
-79
-38
-53
-55
-82
-58
-90
-78
-7981%
93%
81%
62%
88%
87%
85%
63%
69%
64%
53%
58%
56%
50%
48%
47%
49%
23%
16%
4%
16%
34%
7%
8%
9%
29%
22%
25%
32%
27%
27%
31%
33%
34%
24%
45%
3%
4%
5%
5%
6%
8%
9%
11%
15%
16%
16%
19%
20%
20%
27%
32%
Stay in a hotel
Visit a crowded outdoor public place
2%
Attend a large event
Work outside my home
Rent a short-term home
Shop for groceries/necessities 3%
Get together with friends
Go out for family entertainment
Drive more than 2 hours from home
Get together with family
Shop for non-necessities
Go to a shopping mall
Go to the gym or fitness studio
Dine at a restaurant or bar
Go to a hair or nail salon
Use public transportation
Use ride-sharing service
Travel by airplane
WorriedSomewhat worriedNot worried
-83
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old
Resuming out-of-home activities

19. McKinsey & Company 19
Masks and barriers continue to be a priority to consumers as they
decide where to shop in-store
Top priorities when deciding where to shop in-store1
% of respondents for whom this criterion is the most important2
1 Q: Once restrictions lift, which of the following factors will be most important to you as you decide which of these places to visit in person? Respondents were asked to select the most important.
2 The following categories are included in each bucket: Cleaning and sanitization—increased cleaning, improved air filtration, availability of sanitizing supplies throughout the store; Health checks—customer wellness check (e.g., temperature) on
entry, employees' wellness check (e.g., temperature) on entry; Masks and barriers—customers and employees wear masks, customers and employees provided masks and gloves, plastic barrier with cashier; No-contact purchasing—curbside
pick-up, cashier-less checkout, no contact delivery, buy online for pickup in store; Physical distancing—customer number limit, distancing in customer line, reduced employee activity during shopping hours; Store regulations—no customer product
testing, one-way store aisles, special hours for high-risk shoppers.
Change since the
first measure, pp.
+1
0
-1
0
-1
21%
20%
19%
17%
14%
10%
Masks and barriers
Cleaning and sanitization
Store regulations
Physical distancing
Health checks
No-contact purchasing
+2
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123; 6/15–6/21/2020, n = 1,249, including Hubei province, sampled and weighted to match China’s general
population 18–65 years old
Resuming out-of-home activities

20. McKinsey & Company 20
Over the next two weeks, Chinese consumers intend to slightly
increase their level of engagement with out-of-home activities
Consumers’ engagement with activities outside home1,2
% of respondents
1 Q: Did you leave your house for the following activities over the past two weeks? Chart represents the percentage of respondents who indicated that they left home at least once during the past week to do this activity.
2 Q: For which of the following activities do you intend to leave your home to do in the next two weeks? Chart represents % of respondents who intend to leave their home to do this activity during the next two weeks.
98%
92%
93%
79%
79%
68%
65%
63%
44%
46%
29%
25%
25%
19%
12%
Past 2 weeks Next 2 weeks
There is a strong
correlation between
concern in participating
in a particular out-of-
home activity and
intent to participate
(R2~0.9), suggesting that
out-of-home activity
engagement is driven by
individuals’ level of
concern with the activity
95%
89%
88%
73%
72%
63%
60%
57%
40%
34%
23%
22%
12%
9%
9%
Dine at a restaurant or bar
Shop for groceries/necessities
Travel on public transportation
Work outside my home
Use ride-sharing service
Shop for non-necessities
Get together with friends
Get together with family
Go to a hair or nail salon
Visit a crowded outdoor public place
Go to the gym or fitness studio
Drive more than 2 hours away from home
Travel by airplane
Go out for family entertainment
Attend a large event
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old
Resuming out-of-home activities

21. McKinsey & Company 21
Somewhat
unsafe
15%
20%
65%
Feel safe
Feel unsafe
Top activities eager to get back to2
% of respondents for whom the activity is in their top 3 choices
Travel by airplane
15%
Go out for family entertainment 29%
22%
27%
Shop for non-necessities
at shopping mall/department store
Visit a crowded outdoor public place
22%
Dine indoors at a restaurant/bar
Get together with friends
19%Attend a concert, sporting event, movies, etc.
17%
Go to a hair or nail salon
17%Interact with coworkers in person
16%Go to gym or fitness studio
15%Get together with family
15%
Chinese consumers are most eager to go out for family
entertainment and visit outdoor public places
Level of comfort with out-of-home
activities,1 % of respondents
1 Q: What best describes your comfort participating in activities you did prior to COVID? Figures may not sum to 100% because of rounding.
2 Q: What best describes your comfort participating in activities you did prior to COVID? If answered somewhat unsafe or unsafe, Q: Which of the following activities are you most eager to get back to on a regular basis? Select up to 3.
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old
Resuming out-of-home activities

22. McKinsey & Company 22
Engagement in out-of-home activities is relatively consistent across
generations, income levels, and regions
1 Q: Which is your current level of engagement with out-of-home activities (e.g., get together with family or friends, dine at bar or restaurant, etc.)? Possible answers: “minimum levels”; “less than before the coronavirus situation started”; “a similar
number of activities as before the coronavirus situation started”; “more activities than before the coronavirus situation started.” Figures may not sum to 100% because of rounding.
2 Sum of respondents answering “minimum levels” and “less than before the coronavirus situation started.”
3 Sum of respondents answering “a similar number of activities as before the coronavirus situation started” and “more activities than before the coronavirus situation started.”
18%
23%
43%
34%
21%
19%
18%
24%
Millennials BoomersGenXGenZ
18%
20%
78%
76%
3%
>RMB 11,000
5%
<RMB 6,200 RMB 6,200–10,999
31%
31%
29%
32%
22%
18%
18%
20%
Tier 2 Tier 4Tier 3Tier 1
By regionBy generation By income (monthly)
Less engagement2
Same/more engagement3
Out-of-home engagement level1
% of respondents
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old
Resuming out-of-home activities

23. McKinsey & Company 23
Chinese consumers have acquired at-home alternatives to out-of-
home activities, such as videoconferencing and online streaming
40%
3%
49%
6%
4%
5%
5%
6%
50%
22%
9%
8%
15%
12%
29%
11%
37%
10%
8%
6%
6%
7%
37%
8%
31%
7%
18%
8%
3%
10%
5%
6%
28%
3%
4%
3%
6%
6%
1%
2%
Online fitness
Telemedicine: mental
Videoconferencing: professional
3%
Video chat: personal
Wellness app
Remote learning: my children
Telemedicine: physical
Remote learning: myself
Digital exercise machine
Online streaming
2%
2%
1%Social media
Playing online games
TikTok
Watching e-sports
Cooked regularly for myself/my family
Personal care/grooming at home
2%
2%
2%
3%
Not using Using less / the same Just started usingUsing moreHave you used or done any of the
following since COVID-19 started1
% of respondents
Intent to
continue,2 %
62%
42%
66%
50%
48%
48%
60%
65%
57%
91%
87%
67%
69%
43%
77%
45%
1 Q: Have you used or done any of the following since the COVID-19 situation started? If yes, Q: Which best describes when you have done or used each of these items? Possible answers: “just started using since COVID-19 started”; “using more
since COVID-19 started”; “using about the same since COVID-19 started”; “using less since COVID-19 started.”
2 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase
this.” Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old
Resuming out-of-home activities

24. McKinsey & Company 24
UsergrowthsinceCOVID-192
Intent to use after COVID-191
Percent of new or increased users who intend to keep doing activity after COVID-19
1 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase this.”
Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
2 User growth is calculated as % of respondents who replied that they are new users over % of respondents who replied that they were using the product/service pre-COVID-19 (using more, using the same, or using less).
Online entertainment and wellness habits adopted during the
COVID-19 crisis are likely to remain in the short to medium term
46
15
65
60 76720 68 9052 6442
40
44 846648 50
55
7854 8056 58 62 70 74
30
82
25
86
50
88 92
0
5
230
10
20
35
45
60
Video chat: personal
Playing online games
Videoconferencing: professional
Online streaming
Telemedicine: physical
Telemedicine: mental
Used social media
Digital exercise machine Watching e-sports
Personal care / grooming at home
Remote learning: myself
Remote learning: my children
Cooked regularly
Wellness app
Online fitness
TikTok
Works for now
Accelerated shifts
Potentially here to stay
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old
Resuming out-of-home activities

25. McKinsey & Company 25
1 Q: Have you used or done any of the following since the COVID-19 situation started? If yes, Q: Which best describes when you have done or used each of these items? Possible answers: “just started using since COVID-19 started”; “using more
since COVID-19 started”; “using about the same since COVID-19 started”; “using less since COVID-19 started.”
2 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase
this.” Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
3 Change since first survey is calculated by dividing the difference in % new/increase users between Sep’20 and Apr’20 by the Apr’20 figure.
4 Not included or insufficient sample (n = < 75) in first survey.
Have you started/increased usage since COVID-19 started1,2
% of respondents
46
29
44
36
21
16
37
10
9
32
15
13
9
3
10
9
4
3
Video chat: personal
Grocery delivery
TikTok
Videoconferencing: professional
Restaurant delivery
Playing online games
Remote learning: myself
Remote learning: my children
Watching e-sports
Online streaming
Restaurant curbside pickup
Store curbside pickup
In-store self-checkout
Buy online for in-store pickup
Wellness app
Online fitness
Telemedicine: physical
Telemedicine: mental
Change since
April survey,3 %New/increased users
-39%
-52%
-86%
N/A4
N/A4
-60%
-34%
-73%
-54%
N/A4
-77%
-86%
N/A4
N/A4
-87%
-86%
-95%
-94%
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123; 4/8–4/13/2020, n = 1,216, including Hubei province, sampled and weighted to match China’s general
population 18–65 years old
As Chinese consumers resume out-of-home activities, growth in
digital habits has slowed
Resuming out-of-home activities

26. McKinsey & Company 26
Hybrid
Online only
80%
12%
8%
In-person only
1 Q: What education format is your child/children’s school primarily using today? Figures may not sum to 100% because of rounding.
2 Q: Please indicate how strongly you agree or disagree with each of the following statements. Statements include: “I expect remote learning to be a key education format for formal and/or informal education for the next 3 months”; “given
the uncertainty of school openings, I am planning to spend more on at-home learning tools and equipment (e.g., tutoring services, desk equipment, electronics)”; “I have cut back my work hours given my child/children’s at-home
learning needs.” Rated from strongly disagree to 6 strongly agree. Figures may not sum to 100% because of rounding.
As remote learning is no longer mandatory, only a small proportion
of families are making adjustments to adapt to it
Education format1
% of respondents
17
16
14
Expect online to
continue for 3+ months
Reduce work hours
Invest in at-home
learning tools
Agree/Strongly agree
Change in beliefs / behaviors for those with children in remote
learning,2 % of respondents
~20%
of children in
some form of
remote learning
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old
Resuming out-of-home activities

27. McKinsey & Company 27
1 Q: Please indicate how strongly you agree or disagree with each of the following statements: “I have cut back my work hours given my child/children’s at-home learning needs”. Rated from strongly disagree to 6 strongly agree. Figures may
not sum to 100% because of rounding.
2 Monthly income.
RMB 6,200–10,9992
Overall
<RMB 6,2002
>RMB 11,0002
15
Agree/Strongly agree
14
4
15
Reduction in work hours for those with children in remote learning1
% of respondents
For families with children in remote learning, only 14 percent of
families have reduced work hours to meet at-home learning needs
14%
of families have
reduced work hours
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old
Resuming out-of-home activities

28. McKinsey & Company 28
1 Q: How do you think your spending for the upcoming seasonal holidays (e.g., Singles Day, Black Friday, Christmas) may change compared with last year? Rated from 1 “significantly decrease” to 5 “significantly increase.” Figures may not sum to
100% because of rounding.
2 Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
16% 22% 26%
51%
51% 44%
33% 27% 30%
<RMB 6,200 RMB 6,200–10,999 >RMB 11,000
Chinese consumers across income brackets intend to increase their
holiday spending
~75%
of households plan
to maintain or
increase their
holiday spending
25%
46%
29%
About the same
Spend more
Overall
Spend less
Overall By income (monthly)
Net intent2
+4 +17 +5 +4
Holiday shopping spending intent1
% of respondents
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old
Resuming out-of-home activities

29. McKinsey & Company 29
24%
46%
30%
Overall
More online
About the same
More in store
1 Q: How do you think the way you shop for the upcoming seasonal holidays (e.g., Singles Day, Black Friday, Christmas) may change compared with last year? Rated from 1 “shop significantly more in-store/in-person” to 5 “shop significantly more
online.” Figures may not sum to 100% because of rounding.
2 Net intent is calculated by subtracting the % of respondents stating they expect to spend more in store from the % of respondents stating they expect to spend more online.
Holiday shopping channel preference1
% of respondents
Compared to older consumers, younger consumers are more likely
to shop online for the holidays
28%
43%
24%
48%
37%
Gen Z
22%
21%
Millennials
25%
30%
45%
Gen X
52%
26%
Baby Boomers
+6 +16 -5 -4
Overall By generation
~74%
of Boomers plan to
do as much or more
of their holiday
shopping online
Net online
intent2 +4
Source: McKinsey & Company COVID-19 China Consumer Pulse Survey 9/16–9/24/2020, n = 1,123, including Hubei province, sampled and weighted to match China’s general population 18–65 years old
Resuming out-of-home activities

30. McKinsey & Company 30
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