Hopeful Young Chinese Embrace Future
China had a big increase in travel during a five-day holiday in June.
274 million trips were made in China over the long weekend. This is up 70.83% from last year. These figures are also higher than in 2019, before the pandemic, by over 119%. The data was released by China's Ministry of Culture and Tourism.
Revenue from tourism inside China went up to 148 billion RMB, which is 128.9 percent more than previous year. This is good news because it shows that people are feeling positive and the economy is slowly improving.
RTG Consulting Group recently conducted a study on young Chinese consumers. The study's findings align with the upcoming May Day holiday.
After being isolated from COVID-19 policies for three years, over 64% of young consumers are planning to travel during their break. They want to travel both domestically and internationally.
People in China are not interested in traveling abroad with only 15 percent planning to do so. This is because of travel restrictions and difficulty getting travel documents like passports and visas. Limited international flights are also making travel more expensive.
Lots of people wanted to travel within China during the holiday. Almost half of the people surveyed had plans to do so. Many Chinese travelers went on trips within the country during Labor Day. This shows that people still wanted to travel domestically, even if international travel was limited.
More people are expected to spend on travel and leisure. Studies show that over 43% of consumers are likely to spend more in the next few months.
When things are changing, young Chinese consumers feel good about the future. They believe that China will do well.
People are becoming more optimistic. They have a stronger belief in the direction the country is heading. Some people are still negative, but it's getting better.
In March, many young Chinese people felt positive about the future. In fact, over 62.4% of them expressed confidence, a six-month high.
The media says China may not be good, but we still think it's a good market. We especially like the luxury section.
China's shoppers are very important for the luxury industry. They will buy over 40% of the world's luxury goods by 2030. This makes the Chinese market very big and necessary to pay attention to.
People in China's middle class are becoming more rich, so they might be more likely to spend money on luxury items. Still, some people might be careful with their money.
China's per capita disposable income was 36,883 RMB in 2022. This is equal to about 5,487 U.S. dollars. This is a 5 percent increase from the previous year. The National Bureau of Statistics provided this information.
In the future, Chinese luxury consumer spending will probably be spread out in different parts of the world because people will start traveling again. Businesses should plan ahead to attract these travelers.
Young Chinese consumers are optimistic about their future. Their optimism is not baseless.
China's market is strong and resilient after the pandemic. The market demand and production capabilities are powerful. China is ahead of the curve.
Brands will feel the impact as the country reopens. The impact will be profound. The world is coming back in. All sectors will increase activities.
The pandemic is over, and China is in the spotlight. Chinese consumption patterns will change a lot, I think.
To stay relevant, international brands must understand Chinese consumers. Understanding what drives them is important.
Lydianne Yap leads research at RTG Consulting Group in Singapore. You can contact her at [email protected].
Mickey Alam Khan edited the blog section.
