Caring for the elderly, rising awareness of environmental protection and the flourishing “she economy” are creating a cushion against potential deflation in mainland China, offering manufacturers, retailers and service providers a ray of hope amid consumer concerns over wages and job prospects.
A recovery of consumer vigour in the mammoth Chinese market, which officials and company bosses believe will turn the world’s second-largest economy around, could take shape when the big population of retirees, Gen Z shoppers and female wage earners fully switches to a free-spending mode, according to analysts.
“Overall, consumer sentiment remains subdued,” said Chen Xiao, CEO of Shanghai Yacheng Culture, a provider of marketing and branding services to multinational retail companies. “But we still see some growth drivers that have potential for manufacturers and service firms to explore. Those sectors also show the resilience of the Chinese economy.”
Amid a long property slump and an uncertain export outlook, Beijing has been focusing on expanding domestic demand to drive the economy.
In the first eight months of 2025, retail sales across the mainland climbed 4.6 per cent from a year earlier to 32.4 trillion yuan (US$4.55 trillion), according to the National Bureau of Statistics (NBS).