Chinese consumers are shifting gears from cautious spending to purpose-driven consumption, with special focuses on boosting income and prioritizing meaningful purchases, said a latest report of global consumer and retail analytics leader NielsenIQ.

According to the report, there are signs of improvement emerging among economically weaker consumer groups, however financial conditions for more than half of Chinese households remain cautious.

Some 34 percent of consumers believe their household finances are better than last year. However, it was a 16 percent drop year-on-year.

Ryan Zhou, managing director of NielsenIQ China, said that as the world's second-largest economy, China's growth remains steady and a global leader in economic performance.

"Government initiatives aimed at job creation, income stabilization and consumer-friendly policies have effectively stimulated spending online and offline. We are optimistic about the gradual recovery of China's consumer market,"Zhou said.

At the same time, Zhou noted that Chinese consumers remain resilient yet cautious, adopting more purposeful spending behaviors.

According to the report, Chinese consumers increasingly adopt "earn more, spend less" strategies. While 72 percent of people surveyed are actively seeking additional income sources beyond their primary jobs, 47 percent are limiting purchases to essentials to avoid waste, up 7 percent year-on-year.

Value-conscious consumers, who carefully compare prices across platforms, have grown from 30 percent to 39 percent, becoming the dominant group in China's consumer market, it added.

"They prioritize value and focus on purchases that enhance fulfillment and happiness. Therefore, brands and retailers must adapt by improving product value and experiences, leveraging omnichannel strategies and meeting the demand for cost-effectiveness and quality living,"Zhou said.

Notably, the report said that artificial intelligence, in particular, is rewriting the rulebook. As consumers grow increasingly comfortable relying on AI for recommendations and decision-making, a new wave of consumption patterns is emerging.