A striking poster of her flexing toned muscles in a pink Lululemon tank top, paired with the Chinese phrase “活出生动” (a nod to Lululemon’s global campaign, Live Like You Are Alive), has been widely shared on Xiaohongshu (Rednote).

Unlike past Women’s Day campaigns drenched in pink ribbons and glossy discounts, Macdonald’s image delivers a message of empowerment without resorting to commercial gimmicks.

Chinese consumers are taking note—and pushing back.

Beyond Pink Discounts: A Shift in Women’s Day Narratives

Something is changing in the way Chinese female consumers engage with Women’s Day in recent days. If spending power is a form of power, then Chinese women are wielding it with new intentionality.

Retailers, once dictating the language of the occasion, are now being held accountable by the very audience they target.

In Chengdu, a city known for its relaxed vibe and iconic pandas, shopping malls featured LED signs displaying quotes from renowned feminist writers, films, and local idioms celebrating women’s strength.

These messages—free of flowery adjectives and infantilizing nicknames—are gaining traction on social media. Clean, direct, and unapologetic, they stand in stark contrast to the saccharine marketing language that has long defined March 8th promotions in China.

For years, brands and e-commerce giants rebranded the holiday into "Queen's Day" or "Goddess Day," operating under the belief that these labels exuded respect while, in reality, they served as little more than ploys to lure female customers into spending. But Chinese netizens are reclaiming the real name.

On Xiaohongshu, users are documenting and celebrating businesses across the country that have opted for a more powerful and yet de-commercialized approach.

It signifies a broader shift in consumer consciousness—a realization that the language used around Women’s Day reflects deeper societal attitudes toward women. The refusal to be infantilized, sexualized, or turned into a convenient marketing demographic speaks to a growing awareness of power dynamics in branding, advertising, and commerce.

The Rise of Women-For-Women Businesses

This shift in values has also catalyzed a new commercial model: the all-women business (or "women-for-women" business), referring to businesses both founded by women and catering exclusively to female consumers.

The emergence of this model isn’t coincidental—it is a direct response to long-standing gender imbalances in both professional and consumer spaces.

"Women-for-women" businesses can be categorized into two distinct types in China at the moment. The first includes tailored services designed exclusively for female clients, such as skincare clinics and women-only bars, which prioritize customer experience and comfort. The second type ventures beyond commercial viability into ideological experimentation—feminist bookstores, women-led home renovation businesses, and female-only electrician services.

These businesses are not just about filling a market gap; they represent a broader societal reconfiguration in how women engage with labor, power, and consumption.

Sure, questions remain about this emerging business model—some have fallen short or faced criticism. Yet, it undeniably signals a broader shift in consumer values among Chinese women, particularly in major metropolitan areas like Shanghai and Beijing.

Economically, this trend aligns with the "she-conomy" (she + economy), a term widely used in Chinese marketing discourse to describe the rise of female-driven consumer spending.

The numbers back it up: women control as many as 75% of household purchasing decisions in China, and their spending patterns are increasingly aligned with values rather than impulse-driven consumption.

This is why companies that embrace inclusivity, respect, and authenticity in their messaging are gaining traction.

Government Messaging: A Rare Nod to Feminism?

Across state-owned shopping malls from Chengdu to Shanghai, Zhengzhou, and Changsha, bold yet understated slogans that align with feminist discourse are appearing—an unusual sight in a country where feminist activism often meets governmental scrutiny.

This March has also seen an influx of imported feminist films in Chinese cinemas for the first time, despite having been released abroad years ago.

Among them are There’s Still Tomorrow, an Italian film directed by Paola Cortellesi, Prima Facie starring Jodie Comer, the French animated film Fireheart, and several others—marking a rare cultural shift in how gender issues are discussed in the public sphere.

Historically, the Chinese government has been cautious about embracing Western-style feminist narratives. Yet, recent developments suggest a degree of strategic openness, likely tied to an upcoming global summit on gender equality and women’s empowerment, which China is set to host in the second half of this year.

Chinese Foreign Minister Wang Yi announced earlier this month that Beijing will hold the Global Leaders’ Meeting on Gender Equality and Women’s Empowerment, signaling the event’s diplomatic importance.

While this does not signal an ideological overhaul, it does indicate that certain feminist themes are being cautiously permitted within controlled environments—especially when they align with broader diplomatic or economic interests.

The question remains: is this newfound space for feminist dialogue a temporary allowance for political optics, or does it mark a more enduring shift? Regardless, Chinese women’s increasing awareness and rejection of outdated marketing narratives suggest that, whether governments or corporations adapt or not, consumer behavior has already moved forward—and it isn’t looking back.

But here’s what I find even more fascinating than the movie itself: not everyone who watches it seems truly moved by it, and yet they return, ticket after ticket, filling theater seats over and over again. For what?

To push Nezha to the top of the charts and break world records.

This act of rallying behind Nezha is more than just national pride—it reflects a broader pattern in Chinese consumer culture, where spending is driven not just by personal preference, but by the need to validate and elevate symbols of identity. This same phenomenon plays out in luxury consumption.

In recent years, this collective enthusiasm for homegrown culture has only intensified. The pandemic cut Chinese consumers off from overseas luxury shopping, prompting them to turn inward. This shift in focus on domestic culture reached a high point when the Spring Festival was officially recognized as a UNESCO cultural heritage, further fueling a wave of cultural nationalism.

In a recent piece I wrote for Vogue Business in China, I explored how this has fueled an intangible cultural heritage (非遗) movement in China—not just as a marketing tool for luxury brands seeking to localize, but as a genuine shift among young Chinese consumers eager to engage with their own cultural roots.

This shift reminds me of a conversation I had recently about China’s luxury consumers—what compels them to spend?

Yes, for one thing, they have the money. Decades of rapid economic growth have produced a generation of consumers who are not only wealthy but financially literate in ways previous generations were not. They have been meticulously groomed by global marketing machines, seduced by aspirational branding, and conditioned to understand the notion of luxury—its history, its craftsmanship, its allure.

Chinese consumers did not always have this level of discernment. It was learned, accumulated through years of exposure to omnipresent messaging from brands that sought to educate as much as sell.

But there’s something deeper at play. Beneath the gloss of Hermès silk and the polished leather of a Birkin, beneath the meticulous rituals of skincare and the diamond-encrusted whispers of high jewelry, lies a fundamental human desire: the need to be recognized.

Luxury in China is not just about ownership—it’s about participation.

The way fans of Nezha buy tickets not necessarily for personal enjoyment but to elevate the movie’s status is strikingly similar to the way China’s luxury consumers engage with brands. The act of buying is not only transactional; it is a performance, a statement of allegiance. To buy luxury is to belong—to a class, to a narrative, to an imagined ideal of sophistication and global citizenship.

But there’s another layer to this evolving landscape: Chinese consumers have become hypersensitive to respect. Years of interacting with global brands have made them acutely aware of whether they are truly valued—not just in service quality but in cultural representation.

A dual-track strategy—one approach for China, another for the West—no longer works. Consumers now scrutinize how brands behave across different markets, monitoring inconsistencies between their messaging on Chinese and Western social media.

Take the Lunar New Year vs. Chinese New Year debate, for instance. On Xiaohongshu (also known as Red), users like @SugarNino dissected how luxury brands positioned the same campaign differently: Valentino was criticized for calling it Lunar New Year on its official website but using Chinese New Year elsewhere. Miu Miu, in contrast, subtly adjusted the phrasing based on different regional sites.

More recently, Fendi found itself under fire when it was accused of mislabeled the traditional Chinese knot as a Korean knot in an Instagram campaign. This kind of brand “fact-checking” has become increasingly common, and consumers are not afraid to call out double standards.

And yet, the Nezha phenomenon hints at a deeper cultural shift. The fact that consumers are rallying around a Chinese film—not purely for personal enjoyment but to elevate its status—mirrors the evolving dynamics of luxury consumption. For decades, luxury in China was about signaling wealth in its most literal sense. But today’s consumers are more nuanced.

They chase meaning as much as they chase price tags. They seek validation not just from their peers, but from the brands themselves. They want more than just exclusive products and premium services—they want brands to demonstrate a deep understanding of their culture, not just as a marketing tactic, but as a fundamental part of their strategy.

I mean, for sure, there is still room for international luxury brands to grow in China, particularly among high-net-worth individuals (HNWIs), who continue to value prestige, status, and exclusivity—even as homegrown brands gain traction. However, this may not hold true for the younger generation. They are increasingly skeptical, questioning the very foundation of luxury itself: Why should the West be the one to define what is luxurious and what is good?

Recognition, respect, acceptance—these have always been at the core of why we spend. The question is: as China’s luxury consumers evolve, will their spending power remain in service of external validation, or will they one day turn that energy inward, championing their own cultural capital the way they’ve rallied behind Nezha?

The closures affect the Reel Mall store near Jing’an Temple and the New World Daimaru store near Nanjing East Road, both situated in prime shopping districts. The news first broke by a retail analyst Hanson on RedNote.

Gucci, owned by Kering, will maintain seven stores in Shanghai following the closures. The moves come as the brand struggles with declining sales in a key market. Kering reported that Gucci’s annual net revenue fell 23% to €7.7 billion ($8.3 billion) in 2024. Compared to its peak, when Gucci reached a sales momentum of 10.49 billion euros in 2022, the luxury giant has seen its revenue decline by nearly 2 billion euros.

The Asia-Pacific market, excluding Japan, is a critical region for Gucci, accounting for over 35% of its total revenue, with China playing a central role. However, shifting consumer behavior—where Chinese shoppers increasingly prefer to purchase luxury goods abroad—and a broader economic slowdown have weighed on sales.

Kering's challenges are not isolated to Gucci; the luxury conglomerate has faced broader difficulties, with profits plunging by 50% due to struggles across other brands, including Saint Laurent, Balenciaga, and Alexander McQueen. Other global luxury brands have also reported softer demand in the region, as high-net-worth consumers adopt a more cautious spending approach amid economic uncertainty.

The retail market in Hong Kong is witnessing an influx of Chinese coffee chains like Luckin Coffee and Cotti, reflecting a growing trend towards affordable options. Meanwhile, Proya continues to dominate the beauty sector with significant revenue growth, driven by substantial marketing investments. Conversely, the luxury market faces challenges, as major brands like LVMH and Hermès report declining sales due to reduced consumer demand in China. Additionally, a shift in consumer trends sees young Chinese moving to smaller towns for better lifestyles amid economic pressures. Finally, the upcoming National People's Congress Standing Committee meeting holds potential for new government stimulus measures aimed at revitalizing the economy.

Retail Market

• Chinese Coffee Chians are flocking into Hong Kong

Chinese budget coffee chain Luckin Coffee is set to open its first store in Hong Kong’s Tsim Sha Tsui district, with renovations currently underway. In addition to Luckin Coffee, another affordable coffee brand, Cotti, entered the Hong Kong market in November of last year, opening its first store on Queen’s Road Central. Since then, it has rapidly expanded to districts like Causeway Bay, Mong Kok, and Ngau Tau Kok.

• Proya Continues to Lead the Beauty Sector

C-beauty flagship brand Proya released its third-quarter report for this year, showing a 21.15% year-on-year increase. For the first three quarters, Proya saw a 33% rise year-on-year, with revenue reaching 6.966 billion RMB and net profit hitting 999 million RMB. Proya places a strong emphasis on marketing, investing as much as 3.5 billion RMB in branding and promotional expenses for 2023.

Luxury Market

• LVMH, Kering, and Hermes post weak sales amid Chinese luxury spending slowdown

Luxury companies have posted disappointing third-quarter earnings for 2024, particularly impacted by weak consumer demand in China. Even brands like Hermès have experienced a continuous decline in foot traffic in the Chinese market. LVMH reported a 16% year-on-year drop in the Asia-Pacific region for the third quarter, and a 12% decrease for the first nine months. Kering also saw a 30% year-on-year drop in the third quarter in the Asia-Pacific region.

Consumer Trends

• Young Chinese Are Leaving Big Cities to Pursue Dreams in Smaller Towns

High inflation, increasingly competitive job markets, and the high cost of living are driving more young Chinese to small towns in search of their dream lifestyles. Factors like industrial upgrades, policy support, and a youth-led “internet celebrity economy” are contributing to the resurgence of smaller towns. In these places, young people are finding a new way of life—one that offers not only fresh travel experiences but also a “new lifestyle model” more connected to the rhythm of everyday life.

Government Policy

• China Sets Date for Key Meeting about Market’s Stimulus Hope

China will hold the 12th meeting of the 14th National People's Congress Standing Committee. This meeting is very important, as the market sees it as a key window for announcing more stimulus measures to boost the economy. The meeting will take place from November 4 to 8 in Beijing.

Hong Kong-based developer New World Development recently announced a loss of nearly HK$20 billion for fiscal year 2024, with former CEO Adrian Cheng stepping down. Cheng is also the CEO of K11, a high-end shopping mall chain in Hong Kong. K11 operates major malls like K11 Musea, K11 Art Mall, and 11 Skies in Hong Kong and has expanded to five mainland Chinese cities, with plans to reach 10 cities by 2026.

Hong Kong vs. Mainland China Powerhouses

In China’s luxury mall landscape, there are two main players:

• the Hong Kong-based group, including K11 (New World Development), Plaza 66 (Hang Lung Properties), IFS (The Wharf Holdings), IFC (Sun Hung Kai), and Taikoo Li (Swire Properties);

• and the mainland-backed players such as SKP, MixC, Deji, and Wushang.

In terms of numbers, Hong Kong-backed malls still lead. Hang Lung’s Plaza 66 has over nine locations in mainland China, IFS has five, and Taikoo Li has four. However, mainland malls like SKP, MixC, and Hangzhou Tower are catching up in sales.

Last year, Beijing SKP retained its title as the top-selling mall in China, with sales reaching 26.5 billion RMB, continuing a five-year streak. Since surpassing Hangzhou Tower in 2011, SKP has consistently held the top spot for single-store sales in China. Other malls, like Nanjing Deji Plaza, also continue to perform well, with 2023 sales reaching 23.9 billion RMB, a 13.8% year-on-year increase. Beijing's China World Mall also surpassed 20 billion RMB in sales in 2022.

In the top 10 luxury malls in China by sales for 2023, seven are mainland shopping malls. Among Hong Kong-backed malls, only Shanghai Plaza 66, Chengdu Taikoo Li, and Chengdu IFS made the list. None of the K11 malls reached 10 billion RMB in annual sales.

Price War, Government Backing, VIP Services: How Mainland Luxury Malls Outperform

Mainland Chinese luxury malls have become formidable competitors to their Hong Kong counterparts, and here are key factors explaining why they are winning the battle.

1. Government Support
   Local government backing plays a decisive role in the success of mainland luxury malls. For example, Wuhan Wushang Mall and Hangzhou Tower are owned by state-run companies, Wushang Group and Hangzhou Jiebai Group respectively. These malls enjoy local protection policies, securing the best locations and controlling significant market share before foreign or Hong Kong-invested malls can enter the scene.

2. Aggressive Price Wars
   Mainland malls are able to engage in aggressive price wars thanks to their strong capital backing. A prime example occurred when SKP entered Wuhan, sparking a luxury price war. Wuhan Wushang Mall offered the steepest discounts, leveraging its financial strength to attract more consumers and defend its market position.

3. Consumer-Centric Strategy
   Mainland luxury malls have a deeper understanding of Chinese consumers compared to Hong Kong-invested malls, which tend to stick to a more traditional approach. For instance, SKP uses a buyer-driven model to carefully curate products, offering exclusive items and requiring uniform signage for luxury stores. SKP also leverages a VIP membership system, encouraging repeat business and offering personalized services that keep loyal customers coming back.

4. Expansion and Innovation
   Mainland malls, particularly those owned by conglomerates like China Resources (which operates MixC malls), are rapidly expanding and introducing innovative mall formats. For example, MixC malls are developed as mixed-use complexes that combine retail with entertainment and cultural spaces, providing a unique shopping experience. This flexibility and adaptability allow them to appeal to a broader range of consumers.

While Hong Kong malls like Swire Properties' Taikoo Li pioneered the "block street" format—seen in successful developments like Sanlitun and Chengdu Taikoo Li—mainland malls are proving more agile in responding to shifting market trends and consumer preferences. Their localized strategies, strong financial backing, and government support continue to set them apart in the increasingly competitive luxury retail landscape.

Hey readers, the weekly wrap-up is back. I will try to deliver what just happened on China’s retail sector and also an anlysis piece each week. For this week, the in-depth analysis will reveal what went wrong of Hong Kong’s luxury malls in China, and why China’s local players are winning (stay tune).

Luxury Stock Rally Amid China’s Stimulus Policy

After a tough year, the luxury sector finally got a much-needed boost, spurred by China's latest round of stimulus, which fueled a rally in luxury stocks. The Europe Luxury Index (STXLUXP) surged 2.5% after the news on Tuesday, marking its largest recent gain. The pan-European STOXX 600 index rose by 0.7%, with the luxury-heavy French market outperforming, gaining 1.3%.

LVMH stock rose 3.2% by the close of the day, while Richemont soared 4.1%. However, Goldman Sachs cautioned that this China-driven rally in luxury stocks is built on shaky foundations and is unlikely to significantly boost high-end discretionary spending.

Junjie’s Take: The luxury sector has struggled this year, primarily due to its reliance on China’s market. Yet, top-tier brands like Hermès and Chanel have remained largely unaffected, as wealthy Chinese consumers continue to invest in brands with strong equity and value appreciation potential.

In contrast, brands that rely more on China’s middle class or newly affluent consumers—such as Gucci—have faced headwinds. While China’s stimulus measures may support luxury stock prices, they are unlikely to significantly boost overall luxury sales, as the middle class continues to battle declining incomes and inflationary pressures.

H&M Launches on Pinduoduo (China’s Version of Temu)

Swedish fast-fashion giant H&M is expanding its digital presence, launching a store on Pinduoduo and establishing an account on Douyin (China’s version of TikTok). H&M, which faced a backlash in China in 2021 over the Xinjiang cotton controversy, has recently been struggling.

Chinese consumers have shifted towards domestic and niche international brands, contributing to H&M's significant revenue drop. The company even closed its flagship store on Nanjing West Road in Shanghai.

Junjie’s Take: H&M’s move to expand into Pinduoduo and Douyin shows the brand’s eagerness to explore new opportunities in China. Notably, Pinduoduo, a Shanghai-based e-commerce platform, targets a broader, lower-income demographic.

It seems H&M wants to offer a wider price range to attract different customer segments on various platforms. For instance, on Taobao, H&M sells items priced as high as 1,000 RMB, but on Pinduoduo, the prices are significantly lower.

Taobao Promotes Free Delivery in Hong Kong and Southeast Asia

Alibaba’s Taobao is set to invest 1 billion yuan to offer free delivery to users in Hong Kong. The project will be managed by Taobao Tmall for vendor recruitment, while Alibaba International will handle user operations and logistics in Hong Kong.

Starting October 1st, Hong Kong consumers will enjoy free shipping on Taobao orders over 99 RMB. According to Cainiao, Taobao’s shipping company currently operates 800 pick-up points in Hong Kong, with plans to increase the number to 1,000 by year-end. Additionally, the free delivery service has been expanded to Malaysia, Singapore, and Taiwan, but the required minimum order value will be higher.

Junjie’s Take: With the growth of mainland China’s internet user base slowing and new user acquisition becoming challenging, many mainland companies are eyeing global markets. For example, companies like Meituan and SF Express are increasing their investments in Hong Kong and exploring emerging markets in Southeast Asia.

Meituan’s Hong Kong food delivery platform, Keeta, has already become the city’s most popular delivery app. Hong Kong, being the closest and most convenient overseas market to mainland China, serves as a testing ground for Chinese internet companies and consumer brands looking to expand internationally.

Miniso Invests in China’s Chain Supermarket

Chinese lifestyle retailer Miniso has purchased a 29.4% stake in Yonghui Superstores, making it the largest stakeholder in the company. Miniso, known for its affordable yet trendy products, has gained popularity, especially among young consumers. Yonghui, a leading supermarket chain in China, has a strong foothold in the fresh produce sector.

Junjie’s Take: Yonghui operates around 850 supermarkets and is the second-largest in China by sales volume. For Miniso, this acquisition presents an opportunity to leverage Yonghui’s existing channels to boost its revenue, which has been affected by the pandemic and competition from e-commerce.

Meanwhile, Chinese consumers are returning to large-format supermarkets, particularly membership-based warehouse stores like Costco and Sam’s Club, as well as local favorites like Fat Donglai Supermarket in Henan, known for its exceptional service. This signals a renewed opportunity for brick-and-mortar supermarkets in China.

During the Qingming Festival, places like Tai’an, Zibo, Tianshui, Kaifeng, and Jingdezhen all saw their tourist numbers jump by over 50%. These cities either have deep historical roots or have gone viral on social media platforms like Xiaohongshu and Douyin. For instance, Zibo is famous for its BBQ, while Tianshui gained attention for its spicy hotpot (Malatang).

As this trend continues to grow, a key question arises: What opportunities does this present for the luxury market?

Where Is the Small City Travel Boom Heading?

During the May Day holiday, hotel bookings in county-level areas jumped by 47%, and supermarket orders rose by 55%. Since September, cultural and tourism bookings in Yichun (a small city in Jiangxi Province) during the Mid-Autumn Festival surged 326.9% year-on-year. Likewise, searches for Huizhou (a small city in Guangdong, near Shenzhen) skyrocketed by 227.2%, and hotel bookings during the Mid-Autumn Festival rose by 229.9%, with more than half of those bookings made by people aged 20-30.

Why Are Small Cities Becoming Popular?

Several factors explain this rise in popularity:

• Younger travelers are increasingly looking for unique, off-the-beaten-path experiences.

• China’s unique holiday schedule and limited annual leave mean that many people travel during peak times, leading to overcrowding in major cities. This has prompted travelers, particularly younger ones, to seek alternatives.

• The economic slowdown has also played a role, making local trips more attractive due to their affordability. In smaller cities, it’s even possible to stay in five-star hotels at much lower prices than in big cities.

How Are Small Cities Attracting Tourists?

• Cafes and Digital Nomads: Some villages in Anji County, Zhejiang, old bamboo processing facotires have been transformed into digital nomad communities. Anji, a small mountainous county with fewer than 600,000 residents, is now home to over 300 cafes. Some of these cafes report daily revenues exceeding 300,000 RMB.

• Highlighting Local Culture: Quzhou, a lesser-known city in Zhejiang, has capitalized on this trend by highlighting its rich cultural heritage, including unique performances such as Longyou’s “hard-headed lion,” Jiangshan Wu Opera, and Qujiang Opera. This has drawn increasing numbers of visitors to this culturally vibrant city located at the crossroads of four provinces.

• Going Viral on Social Media: Earlier this year, Tianshui, a small city in Gansu province, became a tourist sensation thanks to its renowned Malatang (spicy hotpot). The trend was sparked by a vlogger whose videos showcased the affordability and variety of Tianshui’s Malatang, drawing young tourists to the area. According to Trip.com, from March 1 to 16, tourism bookings for Tianshui increased by 40% year-on-year, with hotel bookings up by more than 60%. Notably, 49% of the tourists were from outside the province.

What Are the Opportunities?

• A huge market

With over 2,800 county-level administrative regions in China, the potential for growth is significant. According to Qunar, the average cost of a Tianshui Malatang meal is around 30 RMB, but it can drive 650 RMB in related local spending.

Similarly, a 40 RMB high-speed rail ticket to see the "blue tears" phenomenon in Pingtan can lead to an additional 700 RMB spent locally. A report on county-level tourism in 2024 found that, in 2023, the average tourism revenue across 1,866 counties was 4.295 billion RMB, with an average of 5.0827 million visitors per county.

• Potential opportunities for luxury hospitality

This Mid-Autumn Festival, many young people chose to stay in county-level destinations, where they could enjoy five-star hotel services at lower costs.

Bookings for five-star/luxury hotels in county-level cities grew by 1,400%. According to Meituan, in the first week of September, the most popular county-level destinations for travelers under 30 were Changli County in Hebei, Huidong County in Guangdong, Chun’an and Changxing Counties in Zhejiang, Lingshui County in Hainan, and Wuyuan County in Jiangxi. Other lesser-known counties are also seeing growth. For example, Changting County in Fujian saw a 1,400% increase in five-star hotel bookings, Fengxin County in Jiangxi saw a 1,200% rise, and Zhongmu County in Henan experienced a 1,150% surge.

Luxury hotels in smaller cities are catching travelers’ attention by offering "high quality at reasonable prices." According to Trip.com, the average price for a five-star hotel in fourth- and fifth-tier cities was about 10% lower than in first- and new first-tier cities during the lead-up to the Mid-Autumn Festival.

• Pop-up events on the hotspots

Fashion and luxury brands previously leveraged the rising ski trend by launching pop-up stores in cities like Harbin. This strategy could be replicated amid the current small city travel boom by selecting culturally rich destinations. Such an approach would deepen localization efforts and better resonate with China’s younger generation.

Which Small Cities Are Popular This Year?

According to Meituan’s recent 2024 Young People’s County-Level Travel Report, the top county-level destinations for young travelers this summer were Dali, Pingtan, Rongcheng, Dunhuang, and Yanji.

What is the impact of the “Yeconomy”?

Beyond ticket sales, Ye’s listening party had a significant impact on the local economy. On the day of the event (the 15th), Haikou’s citywide hotel occupancy rate averaged 83.42%, a 41.82% year-on-year increase and a 10.44% rise month-on-month. Among 23 key hotels tracked, the average occupancy rate was 88.3%, with 53 tourist hotels reporting occupancy above 90%. This surge in hotel bookings is estimated to have brought in over 45 million yuan in revenue.

Additionally, major scenic spots and rural tourist destinations in the city attracted 73,900 visitors. Sales at Haikou’s duty-free shops hit 56 million yuan, reflecting a 4.5% year-on-year increase and a 21.5% jump from the previous month.

Some Xiaohongshu users reported spending more than 10,000 yuan on their Haikou trip, including flights. The listening party also coincided with the start of the Mid-Autumn Festival holiday, leading many of Ye’s fans to stay in the city throughout the holiday period. According to the Haikou Municipal Bureau of Tourism, Culture, Radio, Television, and Sports, Haikou attracted over 426,700 tourists during this time, contributing more than 748 million yuan to the local economy.

How did Haikou promote the event?

Haikou offered Ye's fans far more than just a listening party—it was a comprehensive consumer experience. To welcome the fans, the city's hotels, attractions, tourist goods, dining establishments, duty-free shops, and retail outlets all coordinated to provide over 100 exclusive fan discounts. This created a variety of entertainment and shopping options for both residents and tourists, further amplifying the economic benefits of the event.

In a unique touch, the Haikou government even requested that taxi drivers play Ye’s music exclusively during this period.

How did retail sector react to it?

CDF Haikou offered special discounts, vouchers, and 10x loyalty points for concert ticket holders. The Haikou Global Premium Duty-Free City provided exclusive deals, gifts, spa experiences, and more. The Sanya Duty-Free Haikou Mission Hills store offered discount coupons and beauty and liquor experience vouchers. More than 11 shopping malls across the city also participated, providing discounts and vouchers to enhance the shopping experience for concert-goers.

Is Hainan becoming China’s concert event capital?

The Haikou government is signaling plans to bring in more international stars (rumors include Charlie Puth and Lady Gaga), aiming to integrate further with the global entertainment scene. According to Wang Ke, Party Secretary and Director of Haikou’s Bureau of Tourism, Culture, Radio, Television, and Sports, the city’s openness and business-friendly environment—supported by the Free Trade Port’s policies—were key to the success of recent events.

Additionally, Hainan offers visa-free entry to tourists from 59 countries, part of the island’s strategy to attract international visitors and build its reputation as a world-class destination. Hosting international concerts is a key part of Hainan’s plan to position itself as a global duty-free shopping and tourism hotspot. By 2025, Hainan will close its customs borders and implement duty-free policies island-wide, creating a more open and business-friendly environment to attract global talent and investment. This aligns with Hainan’s broader vision of becoming a world-class free trade hub, solidifying its position as an attractive destination for tourism and international commerce.

Meanwhile, Hainan’s duty-free business has been struggling due to the continued drop in the yen’s exchange rate and the increase in outbound travel by Chinese tourists. According to Haikou Customs, duty-free sales totaled 20.132 billion yuan from January to July 2024, down 30.4% year-on-year. However, transforming Hainan into a global performing arts center could help revive consumer interest.

But why? When two French giant flagships under the world’s biggest luxury group LVMH, both bet big in China’s financial hub(once Asia’s luxury hub), it must have some agenda to set and logic to find.

The significant and the most obvious one is the China factor. Even during the pandemic, Louis Vuitton’s parent company LVMH invested a lot in the Chinese market. Right before the show started, Pharrell Williams, the creative mind behind the brand opened his official Xiaohongshu account (China’s biggest lifestyle content platform) to promote the show. His first post now reached over 7,000 likes.

As the CEO Pietro Beccari and the Creative Director Pharrell Williams both put it, Hong Kong is a special place that links to China. During the show, celebrities and VIP clients from mainland China, Hong Kong, Korea and Southeast Asia all attended the event, shining a starlight to celebrate.

During the summer, LVMH CEO Bernard Arnault also spent a high-profile trip to China, a sign that the region plays big for the group. The data proves it, in LVMH’s first nine months of this year, 32% of the income came from Asia(excluding Japan), and the majority of which was from China.

Then, the city itself as a core luxury spending destination was another major factor. As Euromonitor reported, Hong Kong again climbed to the first place as the highest per capita spending on luxury goods. Even after suffering a huge brain drain and capital outflow, Hong Kong still remains the world’s premier city for ultra high net worth individuals with 12,615 ahead of New York’s 11,845.

Also, Hong Kong is one of the markets in Asia that established luxury retail stores very early (Louis Vuitton opened its first store in the region in 1979, just after the brand’s two stores in Japan). That being said, Hong Kong people have a tradition for luxury spending, and the majority of its super-rich still live here to spend. Needless to say, the personal ties between Williams and local entrepreneurs (specifically Adrian Cheng, the CEO of K11’s parent company New World Development) also play a vital role.

A broad picture behind the decisions is Hong Kong’s global influence on the Greater China market(including Taiwan, Macau and Mainland China), South Korea, Japan and Thailand, which no other Asian cities have yet to reach.

Last year, Alibaba didn’t disclose the full sales results for its Singles Day shopping extravaganza, which was a sign that the hype cooled down. At the same time, the competition among major e-retailers is picking up with Xiaohongshu, Bilibili, and Douyin joining the game.

However, Singles Day remains not only China but also one of the world’s biggest online shopping festivals, this nearly two-week-long event is still worth following. Here are some key points to notice:

1. International brands are losing their lure and the Guochao trend is winning over.

According to Tmall, the number of Chinese brands that recorded over 100 million sales is 243, the overall number is about 402, and over half are Chinese brands. Meanwhile, C-beauty brand Proya beat L’Oreal and Lancome in terms of turnover this time. Among 6 C-beauty brands have entered the top 20 this year.

2. There are more growth opportunities below three-tier cities, but they require deep localization to tackle it for international brands.

According to Tmall, more than 20 million new purchasing users and more than 140 million new orders in cities below the third tier.

Hong Kong Stock Market Welcomes a Chinese Retail Brand IPO Trend

Good news for the Hong Kong stock market, one of China’s biggest Puer tea brands Lancang Ancient Tea eyeing an IPO following a trend of consumer goods companies going public in Hong Kong.

At least 10 companies including Keep, Pagoda, and Shiyue Daotian have already made their debut in the Hong Kong stock market.

There’s also a long waiting list with a number over 16, including KK Group, Cha Panda, Lala Move, Cainiao, and SF Express.

Hangzhou SKP Suspended

The expansion of SKP, China's most successful luxury mall, has not been a smooth road. Apart from its home base in Beijing, it has hit a cold streak in other cities. The brand's construction project in Hangzhou has now been halted for unknown reasons.

Beijing Hualian (SKP's parent company) had splashed out $4.8 billion for the site currently in the heart of Hangzhou's Qianjiang Century City. Currently, SKP is only present in Beijing, Xi'an, and Chengdu, but is expanding to Hangzhou, Wuhan, Kunming, Hohhot, and Hefei.

Canadian outwear brand Arc’teryx set to establish another flagship in central Shanghai. The brand, owned by China’s garment giant Anta, has signed a lease with Hong Kong’s Wheelock Properties. A move further proves the brand’s growing popularity in the Chinese market.

The three-store located in Shanghai’s Jing’an Temple were rented by Italian top concept shop 10 Corso Como before 2018. Arc’teryx will reportedly build a “museum-concept” flagship in the region, according to China’s lifestyle service platform Xiaohongshu (Little Red Book).

The brand has already started to hire managerial-level staff for the upcoming store on 51job, China’s leading hiring site.

In 2019, Arc’teryx’s parent company Amer Sports was acquired by Anta for 4.6 billion euros. Since then, Arc’teryx has pivoted to a “China First” strategy, and successfully upgraded its brand image to a fashion outdoor that attracts the country’s emerging HNW and middle-class groups.

Chanel showcased a repeated show in Shenzhen with numerous starlight driving heavy social buzz.

Chanel just presented the brand’s first show since the pandemic in China on Thursday. The replicated show for its Cruise 2024 collection took place in Shenzhen, China’s technology hub bordering Hong Kong.

The fashion brand’s show saw Zhou Xun, China’s awarded actress, supermodel Liu Wen with other stars including Xin Zhilei, Jing Boran and Liu Shishi, and KOLs such as Wang Yibo. Wang Yibo’s post on Weibo drove nearly 100k reposts, one of the biggest buzz on social media in recent months.

Comparing to other luxury houses, Chanel remained a relatively low-key marketing strategy in China in the past - the brand used to only tap high profile movie stars with less active on social media such as Zhou Xun.

ChaPanda is going to roadshow in Hong Kong next week

China’s tea chain Cha Panda plans to launch a roadshow in Hong Kong next week to test the water before going public, according to Chinese media outlet IPOnews.

IPOnews cited an exclusive source that Cha Panda seeks to list in the Hong Kong stock market by the end of this year. As China Retail Watch formerly analyzed, the bubble tea market is facing rising competition.

Cha Panda was founded in 2008, and has opened over 7,000 stores as of this year. The company managed to achieve $580 million in revenue last year and the founder, Wang Xiaokun, has become a billionaire with a net worth of $1.1 billion.

Aesop to expand in China after Shanghai and Shenzhen

Since L’Oreal acquired Aesop, the luxury skincare brand has been expanding in China rapidly. With several locations in Shanghai and a new opening in Shenzhen last month, Aesop is going to find a new destination - Chengdu, the home of giant pandas and a new hotspot for luxury.

The new Aesop store will be located in Taikoo Li, where Louis Vuitton, Dior and other prestigious luxury names operated flagship stores.

The company sees a huge opportunity for China’s high-end cosmetic sector. L'Oreal CEO Nicolas Hieronimus said before that Aesop has “massive growth potential”, notably in China. Meanwhile, Chinese beauty brands are also eyeing the premium market.

However, L'Oreal’s major competitor Estee Lauder said that they were suffering from a weak market for its prestigious business in China.

01 Louis Vuitton launches 1st Chinese language podcast & to stage first show in Hong Kong

Louis Vuitton made two moves in the Chinese market. The French luxury powerhouse has launched its first-ever Chinese language podcast, dubbed Nóng Hó, Shanghai,” which means “Hello, Shanghai” in the local dialect, in a partnership with JustPod (China’s biggest podcast label) and Xiaoyuzhou (a Chinese podcast platform) this week.

The latest Chinese podcast was a part of a series of cultural events that Louis Vuitton will showcase in China, including a new books and gifts pop-up space by Suzhou Creek.

Other than this, Louis Vuitton said it’s going to host its first show in Hong Kong for the upcoming menswear pre-fall collection.

In the meantime, Louis Vuitton’s parent company LVMH is suffering a growth slowdown amid rising inflation and global instability. The luxury giant fell 7 percent on Wednesday.

**02 China’s bubble tea market is still growing**

Two major Chinese bubble tea brands to watch this week - MIXUE and Chagee. Mixue is eyeing an initial public offering in Hong Kong as food and beverage chains were restricted from going public in China’s main exchanges.

Another major bubble tea firm namely Chagee is also weighing a US IPO. The Yunan-based company has opened over 2,000 stores in China and will tap into overseas market.

With several bubble tea chains growing fast, the market competition is furious.

**03 Uniqlo to raise pay in 1tier cities across China.**

Japanese fashion giant and the owner of UNIQLO, Fast Retailing, will raise pay for its Chinese employees in one-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen.

According to the company, the revenue of its Greater China market climbs 15.2% year-on-year and remains the second biggest market of the company.

**04 Chinese consumers remain cautious according to Bank of America**

The Bank of America says Chinese consumers are “not out of the woods yet”, citing its latest survey on questions including income expectations among Chinese. The survey shows only 31% of the interviewed consumers plan to spend more over the next six months, compared with 37% two months ago.

**05 China’s Largest Jewellery Retailer Chow Tai Fook Sees Hong Kong Market Rebound**

The Hong Kong-listed company said the revenue of the second quarter was up 5.8%. Its local market in Hong Kong and Macau rose 54% but the mainland market (its biggest market) only increased 0.6%.