From CNBC: 2025-03-27 01:50:00

Chinese companies like Alibaba and JD.com are seeing an improvement in consumer spending, but it hasn’t reached pre-pandemic levels yet. Policies to boost consumption include expanding subsidy programs and calling for a halt in the real estate market decline. Niche markets, like gold jewelry, toys, and e-scooters, are seeing significant growth.

Tencent reported a 3% growth in fintech and business services, while companies like Laopu Gold, Pop Mart, and Niu Technologies are experiencing substantial revenue increases. Retail sales in China are showing modest improvement, with expectations for higher growth this year. Intense competition in the market is leading to price cuts and struggles for retailers.

Major beverage chains in China are facing lower same-store sales, with competitors launching low-priced products. Companies like Miniso are seeing moderate growth, with a focus on online sales driving revenue. Overall industry slowdown is contributing to challenges in the competitive market, with some sectors experiencing declines in sales. Overseas sales for the fourth quarter grew by 29.2%, showing a strong increase in global demand. However, Chinese bubble tea chain Mixue experienced a decrease in average sales per store in the first quarter of 2024. Luckin, a Chinese coffee chain, and Starbucks also reported declines in same-store sales for the quarter ended Dec. 31.

Read more: Chinese consumer companies signal spending is picking up again