By Mark Tanner*
China’s first quarter retail growth didn’t look too bad at 4.7%. But behind the headline numbers, the actual growth varied a lot depending on which category you sit in.
For companies providing a service such as tourism or hospitality, the January-March data was particularly healthy, growing at 12.7% from 2023. On the other hand, the data wasn’t so upbeat for brands selling goods. Services now account for 43.3% of consumer expenditure, meaning consumers actually spent less on goods than a year ago. In short, they were buying less stuff, and were more price sensitive about the things they did buy.
Some goods categories have fared better than others. Food & beverage sales are tracking well – up 9%, with healthy foods commanding stronger growth in average prices and sales overall. Most things related to health are tracking well, as are mum & baby, outdoors, pets and brands that connect emotionally with their target audience. Cars also flew off the lots,…
