Consumer retail took a hit in China in 2022. It was the first time that retail sales dipped into the negatives in recent memory. 

With Covid restrictions lifted, retail is bouncing back! 

🏙️ Even more urban

Another 10M households join the upper-middle class. What does this mean? More spending power! 

Rebound. We saw 5% growth in Q1 of 2023. 

• Consumers are spending again — not just on items but also at restaurants and bars. 

Larger items? There is still caution around purchasing larger items like household appliances and automobiles. 

• Any surges in auto sales is largely driven by EVs
• EV sales increasing by 25% in Q1 and 34% in March, respectively, compared to the same period in 2021.

✈️ Hitting the road 

Travels have resumed! 

• Domestic air travel in March nearly reached pre-COVID levels
• Although international travel is still at a low, it’s expected that this will change soon 

Coming to SEA. According to data from Chinese travel agency Trip.com, outbound travel bookings for this holiday had multiplied by 18 times YoY. 

• Hong Kong, Thailand, Japan, and Malaysia are the top travel destinations.

🛍️ How luxurious?

The Chinese market is crucial to the luxury retail industry. China’s luxury market is expected to recover by the second half of 2023! 

• China represents 38-40% of global purchases in the luxury market. 
• While China lost a little steam in buying luxury in 2022, Southeast Asia actually saw a 43% surge in 2022. 

We’re seeing retail and travel bounce back. Retailers from SEA will also likely benefit from more tourists coming in! 

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