Connect with us

Hi, what are you looking for?

Imsilkroad

Economic Watch: Int’l businesses eyeing China’s resilient consumer market

Abstract : China's effective containment of the COVID-19 pandemic and progress in vaccination have greatly boosted people's enthusiasm for domestic travel during the May Day holiday lasting from Saturday to Wednesday.

Tourists
visit the Ruins of St. Paul’s in south China’s Macao, on May 3, 2021,
the third day of China’s five-day May Day holiday. (Xinhua/Cheong Kam
Ka)

As China’s early recovery is gaining momentum, observers believe that China holds promise for global businesses.

BEIJING,
May 5 (Xinhua) — China’s effective containment of the COVID-19
pandemic and progress in vaccination have greatly boosted people’s
enthusiasm for domestic travel during the May Day holiday lasting from
Saturday to Wednesday.

Viewing
the travel rush as a clear signal of the country’s economic recovery,
especially a pick-up in consumers’ sentiment, international businesses
are shifting to e-commerce to seek fortune in China’s online market,
given that the coronavirus has brought overseas travel to a standstill.

POST-PANDEMIC COMEBACK

Passenger
trips on Chinese railways hit a new single-day high on the first day of
the International Workers’ Day holiday, with nearly 18.83 million trips
recorded, up by 9.2 percent from the 2019 level.

Experts and media outlets have called the travel boom a “definitely encouraging” sign of post-pandemic revival.

A
staff member presents the goods to be sold during a live video stream
during the 14th China Shijiazhuang (Zhengding) International Commodities
Fair 2021 in Shijiazhuang, north China’s Hebei Province, April 30,
2021. (Photo by Chen Qibao/Xinhua)

Tommy
Wu, a lead economist of British thinktank Oxford Economics, said,
“domestic travel will likely recover to close to pre-pandemic levels
during the Labor Day holiday, which is definitely encouraging.”

“That
said, should we see a strong positive outturn on consumer spending
during the Labor Day holiday, it will be a very encouraging sign that
household consumption recovery is probably back on track again,” Wu
said.

As
a “record-breaking wave of Chinese tourists” are hitting the road for a
May Day trip, the travel frenzy is “giving China’s economy a powerful
short-term boost,” Reuters said in a recent report.

That
is “in stark contrast to the rest of the world where many countries are
still struggling to bring the virus under control, let alone open up
domestic or even international travel,” the report added.

“Tickets
for everything from domestic flights to theme parks are rapidly selling
out in China ahead of its Labor Day holiday as the nation’s recovery
from the COVID-19 pandemic gathers pace,” the Bloomberg News observed in
a report last week.

“China’s
early success in tackling the pandemic has helped to underpin its
economic rebound,” it said. “Its ability to contain sporadic outbreaks
has given millions of people the confidence to stick to their domestic
travel plans.”

A
delivery sorter of ZTO Express works during her shift in Zhengzhou,
central China’s Henan Province, Jan. 21, 2021. (Xinhua/Li An)

BRAND-NEW MODES

Though
the five-day break offers a fillip for local economies hit by the
health crisis, international retailers targeting Chinese tourists are
becoming anxiety-ridden, as border restrictions between countries are
undoing overseas travel and consequently tourism-related consumption.

Therefore, some of them are shifting to online business to mitigate the impact.

Aumake,
an Australian online platform, has developed a social e-commerce
marketplace connecting Asian influencers, buyers and sellers with
Australian brands. Due to the challenges of the pandemic, Aumake has,
like many forward-looking companies, transferred its focus to online
business.

Keong
Chan, executive chairman of Aumake, said this shift managed to provide
Australian brands with an effective channel to seamlessly promote, sell
and deliver products to Chinese consumers via social media influencers.

Among
more than 20,000 registered active users on Aumake’s platform, 85
percent are from the Chinese mainland. Nowadays, Aumake is partnering
with a social e-commerce team based in Hangzhou and converting
end-consumers to small influencers as part of its marketing strategy.

File photo taken on Aug. 30, 2019 shows a Blackmores exhibition zone during the Alibaba E-commerce Expo in Sydney, Australia. (Xinhua/Bai Xuefei)

Several foreign brands have been active players on online platforms familiar to Chinese consumers.

Speaking
at the China Business Summit 2021 held Monday, New Zealand Minister for
Trade and Export Growth Damien O’Connor said, “in China, we have seen
New Zealand businesses pivoting to e-commerce channels, as a way of
ensuring their products get to their customers.”

“In
the absence of travel, we have seen a real investment by New Zealand
businesses in maintaining their connection to market, through digital
platforms, local business partners, or the government teams,” O’Connor
added.

GLOBAL ECONOMY DRIVER

As China’s early recovery is gaining momentum, observers believe that China holds promise for global businesses.

Christina
Otte, an expert with Germany Trade & Invest, an economic
development agency, said, “sentiment remains good in both manufacturing
and non-manufacturing sectors, including among German companies in
China.”

“If
the Chinese economy continues to recover, this will also have a
positive impact on the German economy, as both economies are closely
linked,” she told Xinhua.

Undated
photo provided by Weleda, a natural organic health, wellbeing and
beauty company based in Switzerland, shows one of its production line
near Stuttgart in Germany. (Xinhua)

China
has also consolidated its link with the global business community, with
the first International Consumer Products Expo to be held on May 7-10
in Haikou, capital of the southern Chinese province of Hainan,
attracting more than 1,300 brands from 69 countries and regions.

Weleda,
a natural organic health, wellbeing and beauty company based in
Switzerland, hopes to gain a stronger foothold in China and has
registered for the event.

“We
definitely want to launch more products on the Chinese market, and we
also want to expand our sales channels,” Heiko Barth, Weleda’s regional
director for Asia and Pacific, told Xinhua ahead of the expo.

“In
such a pandemic period, many products could only be sold in the Chinese
market, which now almost recovered from the economic downturn in early
2020,” said Xiong Yu, a professor at the Britain-based Surrey Business
School in the University of Surrey.

“China’s
recovery from the pandemic gives hope to the world, Hainan’s
International Consumer Products Expo is a practical step to bring such
hope to other countries,” he said.

Natee
Taweerifuengfung, president of Thailand-based Siam Think Tank, said
that the expo indicates that China can play a key role in helping
facilitate the recovery of the global economy, adding China’s large
consumer market offers massive development opportunities to the world’s
huge industrial capacities and supply chains.

About Xinhua Silk Road

Xinhua Silk Road (en.imsilkroad.com) is the Belt and Road Initiative (BRI) portal. China’s silk road economic belt and the 21st century maritime silk road website, include BRI Policy, BRI Trade, BRI Investment, Belt and Road weekly, Know Belt and Road, and the integrated information services for the Belt and Road Initiative (BRI).

Source: Economic Watch: Int’l businesses eyeing China’s resilient consumer market

You May Also Like

Purifier

Hot selling well newest reserch humidifier with three grades mist output air purifiers 1 Specification& function Specification Product name 6-Stage Purification Air Purifier With Negative Anion and Humidifier Model No. OLS-K05 Negative ionic releasing(/cm3) 50 million...

Purifier

Best indoor air purifier small house purification with HEPA Porduct Name Air Purifier Model A3 Style Household / business type Lowest Noise 30 dB Particulate CADR 200m³/h Highest Noise 58 dB Voltage 110 / 220V(Optional) Rated Power...

Sticky Post

Repost Your Products Articles To Web2.0 + Social Sites + Photo Sites + Bookmark Sites 0.5$ to publish 1 article to 15 sites,average just...

Purifier

We believe that always we would hear the hydrogen water have antioxidation fuction, actually we don’t know what is antioxidation and why it’s so...