China: consumption is picking up speed

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China has experienced a strong increase in consumption since the beginning of 2023. Luxury companies are therefore expecting an encouraging rebound in activity. The government is expected to announce its economic targets for 2023 very soon.

 

The Chinese government announced this in January when the borders were reopened. It had expressed its intention to encourage a recovery in consumption, the main engine capable of lifting the Chinese economy and stimulating imports. China’s growth target is now approaching 6%, up from 5% in January.

 

On March 5, outgoing Chinese Premier Li Keqiang is scheduled to present the government’s report for 2023, which includes key economic goals and policy priorities. Li Keqiang further told state media on Wednesday that the government is still tweaking its copy.

 

“This year’s growth will be above 6 percent, which is not high given last year’s low base”, said Yu Yongding, an influential government economist who previously advised the People’s Bank of China to Reuters. He said a growth target above 6% would help “boost morale and boost China’s economic growth potential.”

 

Luxury benefits from consumption

 

So far this year, consumption and services are driving China’s recovery. Manufacturing activity also grew in February at the fastest pace in more than a decade, according to an official survey released Wednesday, exceeding expectations.

 

These early signs of recovery in China are also being reported by luxury companies. At the time of the financial results announcement, their executives were betting on a strong rebound in their business, fueled by Chinese buyers. U.S. high-end companies including Tapestry, Coach and Ralph Lauren said last month that demand had started to rise again in China. So did Moncler, Puma, and Nivea cosmetics maker Beiersdorf.

 

“After a very volatile January, with traffic still strongly impacted by the publication of COVID restrictions in December, we see a clear recovery in retail sales since February”, said Vincent Warnery, CEO of Beiersdorf, during a conference for analysts.

 

The industry is benefiting from a surge in demand, fueled by consumer savings during the pandemic. On the lookout, companies are taking advantage of such a consumer recovery. According to Reuters, Louis Vuitton is expected to raise its prices in China by up to 20%!

 

Read also >China : Louis Vuitton should increase its prices by up to 20%

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China has experienced a strong increase in consumption since the beginning of 2023. Luxury companies are therefore expecting an encouraging rebound in activity. The government is expected to announce its economic targets for 2023 very soon.

 

The Chinese government announced this in January when the borders were reopened. It had expressed its intention to encourage a recovery in consumption, the main engine capable of lifting the Chinese economy and stimulating imports. China’s growth target is now approaching 6%, up from 5% in January.

 

On March 5, outgoing Chinese Premier Li Keqiang is scheduled to present the government’s report for 2023, which includes key economic goals and policy priorities. Li Keqiang further told state media on Wednesday that the government is still tweaking its copy.

 

“This year’s growth will be above 6 percent, which is not high given last year’s low base”, said Yu Yongding, an influential government economist who previously advised the People’s Bank of China to Reuters. He said a growth target above 6% would help “boost morale and boost China’s economic growth potential.”

 

Luxury benefits from consumption

 

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China has experienced a strong increase in consumption since the beginning of 2023. Luxury companies are therefore expecting an encouraging rebound in activity. The government is expected to announce its economic targets for 2023 very soon.

 

The Chinese government announced this in January when the borders were reopened. It had expressed its intention to encourage a recovery in consumption, the main engine capable of lifting the Chinese economy and stimulating imports. China’s growth target is now approaching 6%, up from 5% in January.

 

On March 5, outgoing Chinese Premier Li Keqiang is scheduled to present the government’s report for 2023, which includes key economic goals and policy priorities. Li Keqiang further told state media on Wednesday that the government is still tweaking its copy.

 

“This year’s growth will be above 6 percent, which is not high given last year’s low base”, said Yu Yongding, an influential government economist who previously advised the People’s Bank of China to Reuters. He said a growth target above 6% would help “boost morale and boost China’s economic growth potential.”

 

Luxury benefits from consumption

 

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The editorial team
The editorial team
Thanks to its extensive knowledge of these sectors, the Luxus + editorial team deciphers for its readers the main economic and technological stakes in fashion, watchmaking, jewelry, gastronomy, perfumes and cosmetics, hotels, and prestigious real estate.

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