News | China's Resurgent Consumer Market: $467.4 Billion Growth in 2023

1. China's Resurgent Consumer Market: $467.4  Billion Growth in 2023

Chinese total retail sales of consumer goods reached $467.4 billion, a 6.8% year-on-year increase in the first three quarters of 2023. China's consumer market continued to recover and gain momentum, thanks to a series of policies aimed at boosting consumption.

The service sector saw robust double-digit growth, with a particular rebound in travel-related consumption during the Mid-Autumn Festival and National Day holidays.

Online consumption continued to grow, accounting for 26.4% of total retail sales, while physical retail stores also showed signs of recovery.

The recovery and expansion of consumer spending are expected to strengthen further as consumption policies continue to take effect.

2. Champion Changes Hands: Belle International's Quest to Reignite the Brand in China

Belle International Holdings will acquire the distribution rights of Champion in China. Yongjia Group, the current distributor, is selling the Champion business due to challenging market competition. Both Belle and Yongjia hold non-exclusive distribution rights for Champion in China. This competition, coupled with the brand's non-exclusive distribution rights and losses of $6.7 million and $4.4 million in 2022 and H1 2023, respectively, led to the sale.

Belle International, as an experienced distributor, represents 17 international sports and outdoor brands, including Nike and Adidas. Its challenge will be to revitalize Champion's presence in the Chinese market after this acquisition.

3. L’Occitane's Surging Sales in China and the U.S.

L’ Occitane achieved a notable 18.5% year-on-year revenue increase, reaching 1.07 billion euros in the six months leading up to the end of September. When adjusted for stable exchange rates, this growth surged to an impressive 24.9%.

Two primary factors drove this substantial expansion. Firstly, the strong performance of Sol de Janeiro in the U.S. market significantly contributed to L’Occitane's success, boosting revenue. Secondly, its products found strong demand in China, where they gained popularity among consumers, resulting in robust sales figures. By the end of trading on Tuesday, L’Occitane's stock price had risen by 3.67. This performance underscores the company's effective market strategies and its ability to cater to diverse consumer preferences in both the U.S. and China.

4. Kuai Reduced Cross-Border Technical Service Fee Rate from 6% to 2%

Recently, Kuai, a popular Chinese short-video platform, issued a "Cross-Border Liquor Category Fee Adjustment Notice." The cross-border liquor technical service fee rate has been reduced from 6% to 2%.

Not long ago, Kuai also decreased the rates for other cross-border categories. In this adjustment, the rate for the Personal Care & Cleaning category was lowered from 5% to 4%, while the Beauty & Skincare category saw a decrease from 6% to 5%.

In recent years, there has been a rapid rise in the consumption of foreign spirits, including whisky, in China. Major international spirits companies, especially in the highly sought-after whisky category, are increasingly focusing on the Chinese market and exploring ways to cater to Chinese consumers in a more localized manner.

5. The First Tmall International Service Center in China Came into Service Ahead of Singles' Day

In preparation for the upcoming Single’s day shopping festival, the first national Tmall International self-operated service center opened in Yangzhou, China, on October 20.

Operated by Alibaba Group, this 5,000-square-meter center features 1,000 workstations and employs over 800 staff. It offers comprehensive support for various aspects of Tmall International business, except warehousing and logistics, including customer service for Tmall International brands and end-to-end customer support.

This initiative aims to promote collaboration among cross-border e-commerce companies in Yangzhou and enhance international business expansion. Government policies and incentives are also in place to facilitate the high-quality development of cross-border e-commerce.