A Glance at China’s Consumer Market from Nanjing West Road by ANDAMAN PARTNERS Co-Founder Rachel Wu

Hi everyone, Rachel here from ANDAMAN PARTNERS on the ground in Shanghai, China.

I am standing on Nanjing West Road, one of Shanghai’s best-known shopping streets, where you can feel the pulse of China’s consumer economy.

Consumers are spending more selectively, with more moving to experiences.

Across China, spending continuously moves from goods to services. From January to September, retail sales of goods and services grew 2.6%, with services up 5%, against 1% for goods. Services’ share of household spending rose to 47%, up from one year earlier, and travel-related services grew 11%. In Shanghai, retail sales slipped 1.1%, mainly because auto sales fell sharply. But culture, sports and entertainment grew 13%.

Behind the shop windows, imports play a big part. Shanghai’s imports reached 315 billion U.S. dollars, more than its exports, and the city is China’s largest distribution hub for imported consumer goods. This month’s China International Import Expo (CIIE) brought over 4,000 overseas exhibitors from 148 countries and regions, with more than 480 products making their global, Asian and China debut.

The expo closed yesterday with a record high of 85.5 billion U.S. dollars in intended deals, and 143 companies and institutes already registered for next year’s edition.

Walking along Nanjing West Road, you see Chinese consumers, brands and new ideas side by side. If you follow China’s consumer market, watch Shanghai. Consumer choice here often offers an early signal of where the Chinese demand is heading to.

Happy to share more and let’s connect!