London Daily

Focus on the big picture.
Saturday, Sep 12, 2026

China’s consumers are starting to binge on travel, cosmetics again in signs economy is reviving

China’s consumers are starting to binge on travel, cosmetics again in signs economy is reviving

Bookings for domestic travel, hotels have risen on Trip.com, while online transactions on Pinduoduo surge. Gains may not recover to last year’s levels just yet with the global economy facing the threat of recession, analysts say

Chinese consumers are shopping again, in a timely boost for the beleaguered economy, as they regain some semblance of normal life after unprecedented lockdowns aimed at containing the coronavirus pandemic.

Demand for travel, cosmetics, outdoor gear and food has surged in recent weeks as policy-driven stimulus kicked in, workers returned to offices and factories and the government started easing restrictions on people’s movement.

Transport bookings rose more than 50 per cent, while hotel reservations increased by 60 per cent during the three-day tomb-sweeping Ching Ming Festival through April 6, according to Trip.com Group. Online retail orders have likewise boomed, according to e-commerce site Pinduoduo.

“Consumption is expected to steadily warm up, as the latest data shows confirmed Covid-19 cases are not growing,” said Zhang Kailin, analyst at Dongxing Securities in Beijing. Government policies will also underpin the trend, she added.

The pickup in discretionary spending suggests the world’s second largest economy is on the mend. The state has handed out discount vouchers to rejuvenate retail sales. Manufacturing in large companies unexpectedly grew last month after a historic slump in February, while home sales revived.



The coronavirus has infected at least 82,000 people in mainland China and claimed more than 3,300 lives, while new cases and deaths continue to rise in Europe and the US. The numbers in China have tapered recently, underscoring optimism it can come out of the crisis soon and recharge the economy.

Amid new-found ‘liberty’ and pent-up demand, purchases of tickets for domestic tourist spots more than doubled in the past week, which that coincided with the Ching Ming Festival, according to Trip.com, China’s largest online ticketing group. Several tourist attractions saw overflowing crowd troubles, local media reported.

Online sales of cosmetics are also increasing rapidly, boosted by aggressive discounting and live-streaming promotions. Shanghai-based skincare producer Lin Qingxuan posted a 147 per cent year-on-year sales gain on International Women’s Day in early March, a local news site reported.

Pinduoduo has recorded more than 50 million retail orders per day since mid-March, a 60 per cent increase from a year ago, “showing the recovery in the domestic retail market,” the e-commerce site told the Post. Colour cosmetics such as lipsticks, eye shadow, eyebrow pencils saw “decent growth,” it added.


Nationwide food consumption has expanded by a robust 24 per cent, according to Fanli.com, a Shanghai-based third-party shopping site that enables discounted purchases on various e-commerce platforms. Apart from daily necessities, apparel and outdoor gear are among the hottest items.

The big question, though, is if the buying will continue. The International Monetary Fund has warned of a recession as countries such as Japan and Singapore are only beginning to tighten measures to contain the pandemic. China’s economy may have shrunk 5.1 per cent last quarter, according to consensus estimates of analysts in a Bloomberg survey.

“It would still take time for consumer confidence in the medium to long term to return,” said Chen Ke, senior partner based in Shanghai at consultancy firm Roland Berger China. “The key reason is the uncertainty about the pandemic domestically and internationally,” he said.

China’s retail sales slumped 20.5 per cent in the first two months this year, the National Bureau of Statistics said. They were compounded by a 43.1 per cent plunge in catering sales and double-digit declines in car sales, gas consumption and apparel sales. Car sales plunged 79 per cent in February despite subsidy incentives.

“Consumers are delaying their medium-term to long-term demand and refraining from upgrading consumption,” Chen said. While success in containing the virus will further aid consumption this quarter, it is unlikely to match the level a year ago, he added.

Gain in local consumption in the second quarter would show “limited growth,” said Li Ang, an analyst in Beijing at China Galaxy Securities. “Domestic demand for the whole year is still under pressure.”

For now, the rebound in retail spending could not have come sooner for Sun Laichun. The founder of Lin Qingxuan was staring at bankruptcy after sales in stores nosedived in January, the Economic Daily reported on its website in late February, only to be saved by its online business.

Newsletter

Related Articles

0:00
0:00
Close
Chinese Crypto Entrepreneur Leon Li Identified as Seller of £190 Million London Mansion
Trades Union Congress Proposes Social Energy Tariff Funded by Higher Bank Surcharge
British Chambers of Commerce Calls for State Pension Triple Lock to Be Scrapped
Anthropic Says Claude Helped Disrupt Biological Weapons and Cyber Espionage Threats
UK Imposes Sanctions Over Israeli Settlements and West Bank Violence
UK Reimposes Sectoral Sanctions on Iran’s Aviation, Shipping and Energy Networks
UK Economy Grows 0.4% in July as AI and Programming Services Lift Activity
UK House of Commons Rejects Assisted Dying Bill by 286 Votes to 270
UK Reviews Nationwide Emergency Alert Tests After Systems Meet Reliability Targets
UK Seeks Faster Rail Links Across Northern Industrial Corridors
British Business Bank Allocates £150 Million for High-Growth Companies in Northern England
BBC Warns Staff Strikes Are Possible Amid Pay Dispute and £500 Million Savings Drive
UK Backs Short Extension of UN Sudan Sanctions Regime
Prime Minister Andy Burnham Defends Early Prison Release Reforms and Growth Strategy
Reform UK Faces Scrutiny Over Alleged Effort to Circumvent Foreign Donation Rules
UK Analysts Warn Tax Rises or Spending Cuts May Be Needed to Preserve Fiscal Headroom
Jaguar Land Rover Plans Up to 4,000 Job Cuts in £1.7 Billion Cost-Saving Drive
UK Chancellor Warns of Difficult October Budget as Borrowing Costs Rise
UK Declares Israeli Occupation of West Bank Unlawful and Expands Sanctions
UK House of Commons Rejects Assisted Dying Bill for England and Wales
English Councils to Gain Power to Introduce Tourist Taxes by 2028
Kemi Badenoch Reshuffles Conservative Shadow Cabinet
Firefighters Make Progress Containing Major Wildfires in South Wales
John Lewis Partnership Reports £124 Million Loss
Study Says UK AI Data Centres Will Create Only a Quarter of Forecast Jobs
UK Government Considers Higher Industrial Water Prices Amid Supply Pressures
Andy Burnham Holds First Call With Donald Trump as UK Prime Minister
NHS Records Busiest Summer on Record as Heatwaves Drive Hospital Admissions
Home Secretary Orders Police Crackdown on Far-Right Anti-Migrant Vigilantes
UK Supreme Court Rules Northern Ireland Religious Education Curriculum Breaches Human Rights Standards
Markets Price in Four Bank of England Rate Rises by Next Summer
House of Commons Prepares Free Vote on Assisted Dying Bill
UK Government Bans Trade With Israeli Settlements in Occupied Territories
UK Economy Grows 0.4% in July as Artificial Intelligence Investment Supports Expansion
Andy Burnham Becomes UK Prime Minister After Keir Starmer Resigns
John Lewis Partnership Loss Widens to £124 Million
UK Government to Put White Working-Class Social Mobility at Centre of Equality Policy
McLaren Plans £450 Million Technology Investment Creating 1,000 UK Jobs
UK Chancellor Faces Calls for Wealth Taxes and Public Ownership in Autumn Budget
English Mayors to Gain Powers to Impose Uncapped Overnight Tourist Taxes
JPMorgan’s Jamie Dimon Warns UK Government Against Bank Windfall Taxes
UK Air Traffic Control Outage Cancels More Than 2,000 Flights
UK Imposes Trade Ban on Israeli Settlements in the West Bank
UK Borrowing Costs Surge as Middle East Tensions Push Long-Term Gilt Yields to Highest Since 1998
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
×