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Coronavirus pandemic
Business

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

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Workers in a Tmall.com warehouse gather orders from customers in Jiangmen, Guangdong province. E-commerce platforms are getting busier as Chinese consumers start to spend in a big way again as the coronavirus pandemic abates at home. Photo: EPA-EFE
Iris Ouyang
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.
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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.

China may lead the post-coronavirus economic recovery as social distancing and working from home arrangements will accelerate the growth of e-commerce and related services, according to Wenli Zheng, a Hong Kong-based money manager at T. Rowe Price.

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