What would get China’s consumers spending?

胖东来火出圈了!

Economist

2024-05-09

5 分钟
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  • On a regular Tuesday morning, a large crowd has gathered outside a grocery store in Xuchang, a city of 4m people.

  • Visit Pangdonglai at the weekend and things are even busier.

  • Thousands, some having travelled hundreds of kilometres,

  • arrive before dawn to take their place in a queue that snakes back and forth in front of the store's entrance.

  • At a time when China's ritziest shopping centres are often desolate,

  • and the country's economy is struggling,

  • the success of Pangdonglai's 13 outlets is captivating executives who want to understand consumer sentiment.

  • The latest economic data make the queues still more intriguing.

  • Retail spending grew by just 3.1% in March year on year—well below expectations.

  • In the same month, listed retail firms revised down their expected earnings by an average of 7%.

  • In Shanghai, where per-person consumer spending is three times higher than in Pangdonglai's home province,

  • high-end grocers are closing down.

  • One such chain, CityShop, announced in April that it would shut its doors for good after 29 years.

  • Pangdonglai's success contains lessons about both what may be needed to revive China's economy

  • and the shape that such a revival might take.

  • What people are buying is plain to see.

  • Shoppers clamber to fill trolleys with regular goods:

  • fresh produce, pastries and local specialities, such as menzi, a steamed tapioca dish.

  • Some grab stacks of a popular cake before it sells out.

  • Customers have a variety of explanations as to why they have travelled to what appears to be a nice but unspectacular store.