By Li Jie
In the first 11 months of this year, the total retail sales of consumer goods in China exceeded 44 trillion yuan ($6.03 trillion), up 3.5 percent year on year.
As new technologies, new business forms and new models continue to develop, the vast Chinese consumer market is embracing new changes and making impressive strides. To understand the latest consumptiontrends in China, take a look at the following six keywords.
Keyword 1: Trade-ins of consumer goods
This year, thanks to the policy-backed trade-in program, many Chinese consumers have purchased or upgraded big-ticket items such as new energy vehicles, smart and eco-friendly home appliances, and electronic products, enjoying tangible benefits.
According to data from China’sMinistry of Commerce, the sales revenue of consumer goods under China’strade-in program has surpassed 1 trillion yuan this year.
As of Dec. 13, China’s 2024 sales volume of passenger vehicles, home appliances, furniture for home decor, kitchens and bathrooms, and electric bicycles under the program had reached 5.2 million units, over 49 million units, more than 51 million units, and nearly 900,0000 units, respectively.
Keyword 2: First stores and debut events
China has been vigorously promoting the debut economy, which is generating new consumption scenarios that attract consumers for entertainment, leisure, and relaxation.
For instance, French fashion house Chanel held a global launch event alongside the West Lake in Hangzhou, east China’s Zhejiang province; nearly 100 international brands have opened their first stores in Asia or China in Zhangyuan, or Zhang’s Garden, a popular 141-year-old architecture complex in Shanghai; a number of flagship stores and innovative concept stores are constantly enriching the commercial landscape in Beijing.
The debut economy is driving business growth in many regions of China. For example, in the first seven months of this year, Shanghai welcomed 770 new first stores, a year-on-year increase of 16.5 percent, including five stores that are globally first, four that are new to the Asian market, and more than 100 in China.
According to statistics from the Beijing Municipal Commerce Bureau, in the first three quarters of this year, a total of 717 first stores, flagship stores, and innovative concept stores of numerous brands were opened in Beijing, a 40 percent growth from the same period last year.
Keyword 3: Booming culturaland tourism industry
This year, the cultural and tourism sector in China has experienced significant growth, marked by a surge in international visitors and a lively domestic travel market.
Flourishinginbound tourism – China has extended the permitted stay for eligible foreign travelers from the original 72 and 144 hours to 240 hours, and expanded the coverage of its visa-free policy. China’s booming inbound tourism has created the buzzword “China Travel” on social media, as many travelers shared their experiences in the country. In the first three quarters of this year, China received around 95 million inbound tourists, up nearly 80 percent year on year.
Vibrant domestic tourism – There has been a deeper industrial integration in China this year, which encompass culture, commerce, tourism and sports, with sports tourism and “foodie tours”becoming increasingly popular. According to data from Chinese online life service providerMeituan, starting from November this year, the number of searches for winter sports such as skiing and ice skating has increased more than two-fold.
Keyword 4: Countyeconomy
China has over 2,800 county-level administrative regions. With a total population of hundreds of millions, they account for nearly 40 percent of the country’seconomic output, which indicates enormous market potential and development opportunities.
Many well-known chain brands have expanded their retail outlets to Chinese county-level regions, driving the upgrading of China’scounty-level consumer market. Data from Meituan show that in 2024, China’sonline delivery orders from coffee brands like Starbucks, Luckin Coffee, and Cotti Coffee in county seats surged by 97 percent year on year, while the number of online delivery merchants skyrocketed by 159 percent.
At the same time, China’scounty-level regions have become important destinations for consumer spending. This year, county tourism has become increasingly popular in China, boosting local consumption indining, travel, entertainment, and shopping.
Besides, more and more residents from smaller Chinese cities were traveling abroad, creating more growth opportunities for the county economy. During China’sNational Day holiday this year, bookings for outbound travel made by residents from third-tier or smaller cities in Chinajumped by 300 percent year on year, according to Qunar, an online travel service provider.
Keyword 5: Silver economy
As many Chinese born in the 1960s have reached retirement age, a new generation of retirees has emerged in China, many of whom are healthy and vigorous. They generally possess stronger purchasing power, greater desire for fashion, and more diverse leisure needs, with their consumption expanding into various fields such as fitness, cosmetics, healthcare, and tourism.
According to the 2024 Silver-Haired Consumer Report released by Chinese e-commerce giant JD.com, Chinese elderly consumers are not only embracing products designed for their age group but also cutting-edge technology, with the sales of electric beds and shower chairs growing by 152 percent and 202 percent this year.
By the end of 2023, the number of people aged 60 and above in China had reached 297 million, accounting for 21.1 percent of the country’s total population.
The growing elderly population is creating tremendous development opportunities for China’s elderly care industry, which encompasses both community-based services, such as meal assistance, home-based care, long-term care, cultural and sports activities, and rural elderly care, and emerging elderly care businesses, such as smart healthcare, rehabilitation robots, anti-aging solutions, elderly-friendly financial products, tourism, and elderly-friendly renovations.
Keyword 6: China-chic
Over the past year, there has been a growing appreciation of fine traditional Chinese culture among the Chinese people, especially the younger generations.
Their passion for traditional culture is demonstrated in different scenarios. For instance, they are increasingly interested in Guochao, a fashion trend featuring a combination of modern designs and traditional Chinese cultural elements.
Additionally, new Chinese-style clothing, attire that seamlessly integrates traditional Chinese elements with contemporary styling, is gaining immense popularity and becoming a new buzzword in the Chinese consumer market.
More and more Chinese people are preserving and revitalizing China’sintangible cultural heritage, and choose to visit ancient Chinese cities and towns.
A report indicated that with the increasing impact of traditional Chinese culture on consumer trends, concepts such as “China-chic,” Guofeng, and “new Chinese-style” have permeated various sectors and consumption scenes, including catering, entertainment, culture and tourism, beauty, and clothing.
The traditional Chinese cultural elements are seamlessly blending into modern lifestyles in a more fashionable and vibrant manner, becomingimportant ways for people to express themselves and showcase their individuality.
