China's Counties Defy Weak Demand as 600,000-People Jingshan Draws Premium Spending
Updated
Updated · South China Morning Post · Aug 16
China's Counties Defy Weak Demand as 600,000-People Jingshan Draws Premium Spending
2 articles · Updated · South China Morning Post · Aug 16
Summary
Smaller Chinese counties are emerging as a rare pocket of consumer strength, with spending holding up better than in many larger cities despite weak national domestic demand.
Lower living costs, lighter household debt and capital brought back by returning migrant workers are lifting purchasing power in those areas and supporting demand for higher-quality goods.
Jingshan in Hubei — a city of fewer than 600,000 people — illustrates the shift: former truck driver Zhang Liang invested 600,000 yuan in May to open a Sam’s Club reseller shop.
His bet is that county consumers will still pay a premium for well-known brands, suggesting lower-tier markets could offer retailers a brighter growth path while China’s broader consumption recovery remains fragile.