Chinese Consumer Company Signal Costs Again Gathered

Beijing-revenue reports on Chinese companies indicate improving consumer expenses, although it is not necessarily returning to the previous level.

Giants of e -commerce Alibaba and Jd.com In the last few weeks, both have stated that over the last three months of 2024, their retail business has been more rapid revenue growth a year than in 2023.

“We believe that consumption growth is in a healthy recovery period, but not (until it reaches) earlier,” said Charlie Chan, the head of the Asian study in China Renaissance Securities, on Wednesday in Mandarin translated by CNBC.

In order for the consumer cost of returning to growth to the pandemic, the growth of Chinese companies is likely to recover double digits and confidence in consumers to improve, Chen said. He noted that recent A safety of real estate Weighed a sense of consumer wealth.

Chinese politicians emphasized this Increased consumption This is their priority this year. So far the authorities have expanded the subsidy program in trade To include smartphones, top home appliances and electric cars. In September, Beijing also gave a sign of change of real estate policy, calling on stop the market decline.

JD.com benefited directly from the trade program, and reported the growth of sales on electronics and home appliances compared to 15.8% last year in the fourth quarter of 2024. However, the segment revenue by 4.9% was only the fastest growth since 2021, when the sale increased by almost 23%.

Since the second half of last year, the government introduced a policy that stimulated the consumption, and they have “made a constant restoration of consumer confidence,” said Sandy Su, JD.com chief executive, said in a salary this month, according to the actual transcript.

“In the short term, we believe that there are problems in macro-side, but in the long run we remain very optimistic about consumers,” she said.

FavorableManaged by mobile payments and addition to social media WeChat reports Growth on 3% in Fintech and business services Up to $ 56.1 billion ($ 7.7 billion) in the fourth quarter of 2024, noting that “the income of commercial payments was generally stable from year to year.” That is compared with 39% segment growth in The fourth quarter of 2019, which Tencent has attributed “more contributions from commercial payment”.

However, some companies have found niche areas where Chinese consumers spend.

At the end of February on the base of Beijing based Laopu GoldWhat makes and sells gold jewelry with Chinese designs, predicting that its net income increased by at least 236% in 2024 to 1.4 billion yuan. The company intends to release full results for 2024 on Tuesday.

Toy company Pop -Mart Also sounded forward, reporting on Wednesday that revenue in mainland China Last year more than doubled up to 2.64 billion yuan.

New technologies reported that E-Scooter Sales in China grew by more than 80% per year in the fourth quarter From 2024 to 646.2 million yuan. Sales of the segment increased by 27.5%by the full year. The company attributed to the growth of its emphasis on premium and expansion of the store.

Unlike this, niu said Relatively slow recovery in China’s economic growth in 2023 led to a decrease in sales this year.

China’s official economic data At the beginning of the year, a modest improvement was shown.

Retail growth by 4% in the year in January and February was the highest increase in the last 12 months on a seasonally adjusted basis, Chen said. As this growth was on a high base by 5.5% growth in the first two months of 2024, it expects the retail growth this year will be higher than 4%.

In 2024, retail sales increased by 3.5%. In 2015 to 2019, retail sales increased by an average of 9.7% each year.

Chen said he expects public policy supports more discrete consumers either service Costs have been greater than the daily needs of the recovery potential.

Chinese Travel Reservation Website Tip.com – said at the end of February his Net income for 2024 g. Grid by 20% up to 53.3 billion yuan. It was faster than Increase by 15% in 2019 to 35.7 billion yuan in a net profit.

While the company did not talk about its views on the domestic market, it emphasized that international trips resumed to more than 120% of the 2019 level. CEO Jane Song also emphasized that the “silver generation” or travelers over 50 is a target demographic, since in the coming years the market segment is likely to exceed 1 trillion yuan.

China, The second largest consumer market in the worldIt remains intensively competitive, especially because consumer demand was soft. Electric vehicles reduced prices while retailers fought for competition with heavy online.

Home Accessories Retail Network Mini – reported on their mainland income of China grew 10.9% last year up to 1.28 billion yuan, although the growth is slightly moderate in the December quarter by 6.5%. The company does not plan to accelerate the rate of opening stores, and has stated that selling on the Internet in China is increasingly growth.

The main drink chains in China from milk tea to coffee also saw sales in a smaller shop in the last 2024.

Total slowing industry and competitors that launch low -cost products have dropped 0.7% sales in the same store in the first nine months 2024, tea chain bubbles Search said in his Hong Kong’s initial public offer avenue Released on February 4.

In the fourth quarter of 2024 the average monthly sale in the Tea Tea Store Avenue for IPO USA. Foreign sales in the fourth quarter increased by 29.2% a year.

The Chinese tea chain with bubbles borders that in the first three months of 2024 the average sales in the store decreased to 1.08 million yuan, which decreased compared to 1.13 million years earlier, the latest data said.

Even starting a Chinese coffee chain Licin saw Reduction by 3.4% in sales in one store For selfless shops in the quarter, which ended on December 31 since the year. Starbucks labeled A By 6% reduction of comparable sales in the store During this time.

– In Shana Lee CNBC contributed to this report.