Chinese consumers, brands ‘cautiously optimistic’ on tourism and spending

According to McKinsey’s latest China brief, retail spending continues to be higher than pre-pandemic levels, despite talk of China’s economic slowdown

Travel, restaurants and apparel were the top categories consumers were spending on, the survey revealed. Fashion was a priority, given the nation’s full domestic reopening — consumers sought to add to their closets, with their social lives and outside activities resuming.

Key takeaways

• Chinese domestic tourism in June was 7 percent higher than during pre-pandemic levels (in 2019), according to the report;
• However, international travel in June was still 58 percent lower than pre-pandemic levels, though the number of outbound flights from China is “rising rapidly;”
• McKinsey also states that China’s upper-middle-class will grow by an additional 50 million households to 200 million by 2025, meaning that disposable income will expand and continue to drive consumption over the next few years.

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