25 Sep China’s Retail Recovery
As we welcome a new phase of the COVID19 pandemic, retail businesses are starting to picking up again with safety measures in place. In the case of China, Chinese consumers are finally starting to spend again after the pandemic-induced slump, but recovery is unbalanced and overly reliant on luxury goods, with poorer Chinese still cautious. As such, China’s retail recovery is heavily rested on richer consumers, with a rise in sales of luxury goods as compared to other commodities such as food, clothing, and other essentials.
While the supply side of China’s economy has shown resilience, a strong and broad rebound in spending is needed for a more meaningful economic recovery. Even though the virus is under control, income, and job losses due to the pandemic have made poorer Chinese unwilling or unable to increase spending, keeping a lid on the rebound. As such, analyst He Wei has suggested in a recent report higher-income households have higher purchasing power due to accumulated savings over time while lower-income households face a long slog of normalizing their finances.
To read more on China’s retail recovery during and post-pandemic, click on the link below:
https://www.businesstimes.com.sg/consumer/chinas-retail-recovery-still-rests-on-richer-consumers
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