The Consumption Of Spring Festival Is High But The Growth Rate Is Slowing Down. Luxury Brands Deserve Vigilance.

This year, the growth of Chinese consumers' retail and catering expenditure during the Spring Festival slowed to the lowest level since 2005, but the total consumption was over 1 trillion and 10 billion yuan for the first time. These two seemingly contradictory figures reflect the current complex Chinese economic situation, which is worthy of the vigilance of luxury brands.

According to data released by the Ministry of Commerce and the National Bureau of statistics, China's expenditure on the seven days of official holidays officially ended in February 10th increased by 8.5% over the same period last year.

However, this growth rate is far slower than 10.2% in 2018, indicating that economic growth is losing kinetic energy.

"These data continue to show signs of slowing consumption in China since the second half of 2018," Wan Hongyuan, an investment management company in Shanghai, wrote in a recent research report.

[according to the data], we expect the retail sales in January and February to increase by about 8% this year.

Investment bank Nomura holdings also has a negative forecast, saying: "[data] is not conducive to overall retail sales growth."

It is also predicted that the growth of retail sales in 2019 will slow to 8.5% from 9% in 2018.

In recent weeks, including Herm s, LVMH, Burberry, Tap

Although the sluggish consumption growth rate during the Chinese new year does not necessarily mean the overall slowdown in China's luxury consumption this year, this signal should arouse the vigilance of luxury brands who are overly dependent on Chinese customers.

One of the highlights of Shen Wan Hongyuan is that consumers are more willing to spend more money on high quality products according to the observed consumption patterns during the holiday season.

Jingdong pointed out that some expensive watches, jewelry and accessories, as well as fashion.

Shen Wan Hongyuan also pointed out that during the Spring Festival, many consumers still spend money in shopping centers and outlets, and these are places where luxury brands are gathered.

For example, from February 4th to 10, sales of shopping malls and outlets in Shanghai increased by 20% over the same period last year, Shen Wan Yuan observed.

China's Internet giant Tencent has also released a report to study who is the main consumer during the Spring Festival.

The report said that people who were born between 1980 and 1989 consumed the most, contributing 40% to the total expenditure.

After the 1990s, the spending power after 00 years is not allowed to be booed.