"Guess how much?" is the catchphrase of the older generation as they boast about the bargains they find. However, this mindset may have shifted for today's young consumers, who have learned to resist impulse purchases, in favor of a more considered approach to purchasing products.

Influencers frequently post messages like, "If you can't afford SK-II's essence, start with OLAY's 'little white bottle' first," on social media. Whether these are voluntary recommendations or part of a brand's marketing strategy, the concept of a "cheap substitute" has become a popular trend.

Young people are now more inclined to enjoy the benefits of a good product while staying within their budget, as external factors puts pressure on their finances.

The Kantar Brandz 100 Most Valuable Global Brands list has experienced a 20 percent decrease in total brand value this year, with 14 Chinese brands making their way onto the list. This data analytics and brand consulting company determines a brand's value based on its market value and consumer perception.

Chinese consumers are increasingly willing to pay for quality products after the COVID-19 pandemic, regardless of whether they live in a large or small city, according to Sirius Wang, CEO of Kantar Marketplace China. He added that there hasn't been a decline in consumption.

Kantar divides Chinese consumers into three segments. Consumption continues to rise among the top segment, while the middle segment emphasizes quality and consumers who solely seek low prices.

Wang noted that their data reveals that consumers in the middle segment do care about quality.

"For example, someone might have been willing to pay 100 yuan for a product, but now they still prioritize quality, albeit at a reduced price of 95 yuan. However, they would not settle for an inferior product priced at 80 yuan," Wang added.

This poses a significant challenge for brands as they must strike a balance between pricing and maintaining perceived brand quality.

In other words, even if they lower prices, can they still be an appealing alternative for consumers? Wang believes that if a brand is not strong enough, regardless of how much they reduce prices, they won't attract customers.

This global trend aligns with China's situation. In the face of a bleak global economic outlook coupled with rampant inflation in many countries, consumers today often find themselves torn between financial constraints and maintaining their desired quality of life.

According to Kantar data, 47 percent of consumers feel that "making purchase decisions is now more difficult than before."

Many consumers are reconsidering their typical shopping choices and exploring new brands. China's e-commerce company, Temu, has capitalized on this trend, experiencing rapid growth in the United States.

Temu, known for offering products at a bargain price, has been the top iOS app for Apple in terms of metrics such as downloads, engagement and retention throughout most days in 2023 so far, according to mobile app researcher Apptopia.

With the annual 618 shopping festival just around the corner, a major mid-year shopping event in China, brands are gearing up to retain their loyal customer base while also attracting new, value-conscious ones. It remains to be seen which brands will emerge as the leaders in this new era of consumer behavior.