What are you searching for ?

Business

Consumer Behavior Shifts in Focus During China’s Golden Week

Consumer Behavior Shifts in Focus During China’s Golden Week
 

During China’s recent Golden Week holiday, consumer spending patterns revealed a trend of caution and a shift towards experiential purchases. Despite a rise in domestic travel, spending per trip decreased by about 2% compared to pre-pandemic levels. Analysts from Goldman Sachs noted the continued weak domestic demand and a downgrading in consumption habits.

 

Key Insights

  1. Tourism and Spending Trends:

    • Tourism spending per person remained low, and prices for services were subdued.
    • Nearly 20% of bookings on Trip.com came from the 20 to 25 age group, indicating their significant role in the market.
    • However, the box office saw a decline, dropping to 2.1 billion yuan from 2.7 billion yuan the previous year.
  2. Travel Behavior:

    • Spontaneity in travel planning increased, with nearly 30% of travelers booking trips just a day in advance.
    • The average booking window decreased, reflecting a shift in consumer confidence and behavior.
  3. Economic Context:

    • The holiday followed several policy changes and a stock market surge, but consumer spending remained tepid due to economic uncertainties.
    • Kenneth Chow from Oliver Wyman highlighted a trend towards affordable travel options and experiences over high-ticket items.
  4. Retail and Appliance Sales:

    • Retail sales saw a 9% increase, with home appliance sales surging by 149.1%, driven by trade-in policies.
    • Shanghai’s retail sales grew by 3%, showing signs of a modest recovery.
  5. International Travel and Mobile Payments:

    • Chinese mobile payments abroad surged, with Alipay reporting a 60% increase in overseas transactions.
    • Countries like Malaysia, Korea, and Thailand saw significant growth in transaction volumes from Chinese tourists.
  6. Implications for Brands:

    • The shift towards experience-oriented spending means brands must adapt their strategies to capture consumer interest.
    • The focus should be on communicating the value and experiences associated with products rather than just luxury appeal.
 
 


Crypto and Metals



btc us105,042 USDBitcoin
eth us2,510.17 USDEthereum
xrp us2.18326 USDXRP
xau us3,330.67 USDGold Ounce
xag us36.0568 USDSilver Ounce
xpd us1,050.32 USDPalladium Ounce
xpt us1,172.48 USDPlatinum Ounce


Important Stocks >>




Latest News

Business

The global automotive industry is sounding the alarm as China’s recent export restrictions on rare earth elements begin to ..

Business

Nissan’s new CEO, Ivan Espinosa, has announced a bold short-term strategy to address the company’s ongoing struggles. Espinosa emphasized ..

News

The Dutch government has fallen following a decision by far-right leader Geert Wilders to withdraw his Party for Freedom ..

Business

tariffs on steel imports, a move aimed at bolstering domestic production. The decision, which raises tariffs from 25% to ..