China's Golden Week holiday signals persistent consumer caution

Published On Oct 9, 2024, 1:17 AM

During China's recent Golden Week holiday, consumer spending showed a cautious trend, with overall spending down about 2% compared to pre-pandemic levels. Analysts noted weak domestic demand, prompting consumers to prioritize experiences over big-ticket purchases and choose more affordable travel options. Despite an increase in domestic trips, spending on travel and entertainment was subdued, though appliance sales notably surged by 149%. Young consumers, especially those aged 20 to 25, dominated bookings, favoring spontaneity in travel plans. Changes in purchasing behavior suggest brands need to adapt to attract these discerning consumers.