Chinese consumers wary of splurging after Beijing eases Covid rules

Chinese consumers wary of splurging after Beijing eases Covid rules

1 minute, 29 seconds Read

“The move from isolation facility quarantine to home quarantine will not significantly increase retail sales,” said Iris Pang, chief economist for Greater China at ING.

The easing is also happening differently in different places, as some maintain restrictions that have been eased by others.

For example, in the commercial hub of Shanghai, people no longer need a negative COVID test to enter restaurants from Friday, but the rule is still in place for those in Beijing.

Despite some reports from analytics firms of a surge in bookings for domestic flights and movie tickets, the moves come from low bases and paint a picture that clashes with scenes of empty subway seats at peak hour in major cities such as Beijing and Shanghai.

Queues are more common outside pharmacies than malls and stores to reopen, as people stock up on antigen tests and medicines to treat cold and flu symptoms.

A spa in a mall in downtown Beijing resumed business on Friday, saying most staff were back, but very few customers.

One of the masseuses said, “Due to the pandemic, we are now using promotions and coupons to attract customers, which is actually making us loss-making.”

not quite ready

Many businesses also say they were caught on the wrong foot, with one executive of a major hotel chain saying it was “completely unprepared for such a dramatic and drastic reopening”.

He said many of its hotels were still being used for quarantine purposes, persuading owners to open up and hire more workers after a zero-COVID campaign curbed a conservative mindset is proving difficult.

The executive said on condition of anonymity, “The company is now adjusting its strategy so that 80% of resources are focused on capitalizing on ‘revenge’ spend, while 20% is reserved for hotel occupancy and quarantined returnees of employees. “

164 Total Views 1 Views Today
Spread the love

Similar Posts