With the majority believing the recession is behind them, Chinese consumer confidence is expected to continue to grow in the coming year, which sends a merry note to domestic marketers.

The news was revealed in a survey by global marketing research firm ACNielsen. It also found Chinese shopper confidence remains strongest in the East and due to increasing optimism in job and financial prospects, the nation's middle and western regions are getting increasingly upbeat as well.

The rebound in shopper confidence witnessed in the second quarter of 2009 looks set to continue.

Survey of 3,000 shoppers

ACNielsen recently questioned more than 3,000 shoppers across China, discovering that, during the third quarter, consumer confidence rose 12 percentage points to 101 compared with the second quarter, largely driven by renewed trust in job and financial prospects.

Consumers in western and central China recorded the greatest lift - eight percentage points higher than the second quarter - but shoppers in the west of the nation remain noticeably less optimistic than in other areas.

The rebound in consumer confidence has not had much influence on saving habits. Despite the fact that almost nine out of 10 Chinese consumers believe the nation is out of the recession, more than half continue to put spare cash firstly into savings, followed by investing in their children's education and purchasing new clothes.

And consumers from the wealthier first-tier cities are more likely to be investing in stocks and bonds and planning holidays compared with lower-tier cities. The latter are more likely to be purchasing books and magazines and dining out. The ongoing high savings and relatively low willingness to spend doesn't necessarily mean leaner times for marketers.

Three out of four shoppers look for value for money, which means shopping for items on promotion remains a key strategy for many. Almost two thirds take more public transport and over half put off spending on big-ticket items such as houses and cars.

What might be good news for fast moving consumer goods (FMCG) brands is that, despite a preference for purchasing only items on special promotion, many consumers say they would rather put their money into groceries and cook at home rather than go out.

A quarter of consumers would rather wait and purchase their preferred brands and pack size on promotion than switch to a cheaper option. Shoppers also say that they prefer to simply reduce purchases altogether to keep their grocery bill in check. A reluctance to save costs by switching to cheaper brands is exhibited across food and non-food categories. As non-food items generally have a specific purpose around the home and a longer shelf life, shoppers would rather wait until the item is being promoted or stock up on larger pack sizes than reduce their purchases of non-food FMCG items.

The ACNielsen report highlighted promotional shopping has taken a toll on FMCG sales.