China consumption shows 'no sign' of a strong V-shaped recovery, McKinsey says
Publishing timestamp: 2023-11-30 19:00:23
Summary
The article discusses the challenges and opportunities in China's consumer market. Retail sales have remained lackluster since the onset of the Covid-19 pandemic, and there are no signs of a strong recovery. However, there is a shift in consumer spending towards services rather than goods. The overall economic recovery has not met expectations, and geopolitical tensions and declining exports have affected consumer sentiment. There is divergence among Chinese consumer companies, with some experiencing growth and others experiencing declines. The market is more competitive, and consumer tastes have become more sophisticated. Despite slower growth, China's massive size means that even a small increase in retail sales is significant. Consumers in China are spending more on services, and premium brands are generally doing well. Companies that adapt to new consumer trends and utilize livestreaming platforms have seen growth.
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