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China’s Golden Week holiday highlighted a shift towards more cautious spending and an emphasis on experiences among consumers. According to Goldman Sachs analysis, spending per domestic trip during the seven-day holiday was about 2% lower than pre-pandemic levels. This decrease in spending indicated weak domestic demand and continued consumer caution. However, it was an improvement from the more than 10% gap seen during previous holidays in the spring.
The Golden Week holiday in China, which commemorates the founding of the People’s Republic of China on Oct. 1, saw a decline in box office earnings due to a lack of blockbusters. Despite this, there was an increase in bookings for performances and exhibitions, with a significant portion of travelers booking trips on the same day or one day in advance.
Consumer spending in China has been lackluster since the pandemic, with uncertainty surrounding future income and economic growth. This has led to a shift towards more affordable travel options and experiences that can be shared on social media. Brands, including luxury ones, are urged to adapt to these changing consumer preferences.
During the holiday, appliance sales saw a notable increase, with a surge in sales of home appliances. This was attributed to trade-in policies for appliances, as well as consumption vouchers issued by local governments. Mainland China recorded a significant number of domestic trips during the holiday, with popular destinations including Japan, Thailand, and the U.K.
Chinese mobile payment app Alipay reported a 60% surge in overseas transactions during the first four days of the holiday compared to the previous year. Malaysian, Korean, Thai, Hong Kong, and Singapore were among the top destinations for Chinese tourists by transaction volume growth. The company noted that Chinese travelers spent significantly on entertainment, food and beverage, services, and transportation during their trips.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.