Segments of Chinese romancers buck trends in China
It is fair to say that there isn’t as much loving happening in China as in years gone by. The number of marriages in the first quarter of this year dropped to 1.96 million from 2.14 million last year. Since peaking in 2013, there has been a slippery slide every year in couples tying the knot, with the exception of a slight blip last year due to the post-pandemic catch-up.
The number of singles in China has topped 240 million, with over 92 million living alone. This has seen a plethora of brands and marketing trying to tap into the singleton industry.
Yet those brands still chasing a little romance shouldn’t hang up the bow just yet. Like many things in China, the headline numbers often hide subsegments that remain strong, proving to be fruitful markets to those focusing in the right areas.
One example is the booming Dachao Matchmaking, a dating platform that has found success match making for high-net-worth individuals. The company organises mixers for singles with assets worth at least ¥50 million ($6.9m) looking for love in Beijing.
High end romance can be a lucrative business in China. The Economist’s ‘cost of loving’ analysis saw Shanghai pip New York as the most expensive city in the world for a lavish date last year. A typical fancy evening sees residents blow roughly $600. This is despite Shanghai’s relatively low cost of living overall, which sees it ranked as the world’s 238th most expensive city according to Numbeo.
One of the key takeaways from this is consumption in cities like Shanghai can be extreme. You can get a meal for two for a few bucks, but people are still prepared to splash out many, many times that if it brings them an experience, health, status or in some cases, romance. The same applies in almost every consumer category. Average sales prices are not increasing like they once did, yet if consumers see real value, many are still prepared to pay a premium .
China’s equivalent of Valentine’s Day, the Qixi Festival on 10 August this year, is a reminder that love is still very much alive in China, despite tanking marriage rates and increasing singles. Many brands, particularly luxury, actively launch limited-edition products, packaging and marketing, and personalised services to appeal to romantic couples.
Bringing love into your brand and products, whether for the Qixi Festival, or creating another occasion, can provide another reason for consumers to connect at an emotional level and pay a premium to do so. Don’t be put off by a few fewer weddings.
As always, China Skinny can help your brand find more love, contact us to learn more. We hope you enjoy this week’s Skinny.
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