Chinese consumer confidence has remained surprisingly resilient over the past three yearsdespite the slowing economic growth, as a result of more selective and careful spending,according to a new report from McKinsey & Co.

Daniel Zipser, partner in McKinsey's Shanghai office and leader of its China consumer and retailpractice, said shoppers have been shifting their focus to premium segments, away from what areconsidered mass-produced items.

Half of the respondents in the McKinsey's 2016 China Consumer Report said they lookspecifically for the best, most expensive products, a significant increase on previous years. Thesame share said they are allocating more of their income to lifestyle services and experiencespending.

"Chinese consumer trends tend to shift in an instant, thanks to the contribution of social media,and at the moment they have turned toward premium products," said Zipser.

The research was gathered from 10,000, aged between 18 and 65 in 44 cities, who were given60-minute face-to-face interviews.

Zipser said a rising proportion of Chinese consumers are also focusing their loyalty onto fewerbrands, and the number willing to switch to brand names outside their "short list" is droppedsharply.

Gong Fang, another partner in McKinsey's Shanghai office, said in the apparel sector, thenumber of consumers willing to consider a brand they hadn't bought before, dropped from 40percent in 2012 to just below 30 percent last year.

"It is essential for both international and domestic brands to understand and respond to suchchanges in Chinese spending habits," said Gong.

Another major trend was that more Chinese consumers are spending money outside Chinaduring overseas trips.

The study suggested 70 million Chinese traveled overseas in 2015, making 1.5 trips on average,with shopping an integral part of the experience.

Of those, 80 percent made purchases, and nearly 30 percent actually chose destinations basedon their shopping opportunities.

Among international travelers, around half make their purchases of watches and handbags, whileapparel and cosmetics were the most frequently bought categories.

"Overseas shopping will remain popular among Chinese consumers who are mostly taking ontrips as groups and family units," said Gong.

(CHINA DAILY  March 23, 2016)