Coronavirus: as fear factor continues, Chinese consumers seek spending on family, emotional connections
- Retail sales fell by almost 16 per cent in March, but the country’s wealthy middle class can help put economy back on track, analysts say
- But health concerns could hold back spending on restaurants, films, travel and other things that require human-to-human interaction
As the authorities gradually lift the containment measures across most of the country, Wang does not plan on keeping her spending subdued, but rather to spend differently. Chinese households have emerged from a lockdown into a domestic economic recession, rising unemployment and stagnant income growth.
The health crisis has led Wang to believe that savings should not only be invested in the pursuit of better health care, but also in more meaningful experiences with her family.
Wang’s change of heart may signal a broader shift in consumption priorities by China’s large middle class to a greater focus on family, selected brands and online shopping as Chinese consumption may take some time to recover.
A member of Shanghai’s affluent upper middle class, Wang said she believed it is vital for her eight-year old son, Pi Dan, to continue with his private art and piano lessons, even though he must do them online.
She also has decided to upgrade her convertible car to a seven-seat minivan to make it easier to take her parents, who live 1,700km (1,050 miles) away in the southwestern city of Chongqing, on road trips or visits to other members of the family.