Chongqing – The combination of national subsidies and the "618" shopping festival has boosted consumer data, with China’s retail sales up 6.4% year-on-year in May, the highest since January 2024. As China's consumer market evolves, join Jacky Zhu, Head of Retail Research at JLL China, for insights into emerging trends.
Emerging consumer power: the rise of three new generations
"From a consumer perspective, we're witnessing a profound intergenerational shift that is shaping the direction of China's retail market," Zhu said.
Zhu highlighted what JLL refers to as the "new three generations" of consumers—young adults, middle-aged consumers, and retirees—who are becoming the core forces behind China's evolving consumption patterns.
"Chinese consumers are becoming increasingly diverse in age and preferences," he noted. "Young people, for instance, are shifting from valuing practicality to prioritizing emotional connection in their purchases. While they're more cautious with spending overall, they're willing to pay a premium for things they truly love.”
At the same time, China's aging population is emerging as a powerful consumption force, often called the "silver economy." As many seniors retire with financial stability and ample free time, they are increasingly active in the consumer market.
"Seniors today have both the means and the time to enjoy life through consumption," Zhu explained. "They are no longer passive participants—they are enthusiastic contributors to economic vitality."
Jacky Zhu, Head of Retail Research at JLL China, delivered a speech. (Photo/JLL)
Driving growth with emerging consumption trends
While revitalizing existing demands, China should also tap into new consumption scenarios. Zhu discussed the growing integration of urban and rural consumption. Over the past decade, China's Internet economy has rapidly penetrated lower-tier cities, largely thanks to robust logistics and a well-developed digital retail ecosystem.
"E-commerce has made quality goods accessible across the country," Zhu said. "But now, we also need to rethink and innovate our offline retail models, especially in underdeveloped areas."
He pointed out that many lower-tier cities still lack high-quality retail spaces, such as modern shopping malls or commercial streets, limiting local residents' offline shopping experiences. This aligns with recent government efforts to stimulate consumption by encouraging businesses to invest in retail infrastructure in smaller cities and townships.
"There's a clear opportunity for developers and retailers to go downstream," Zhu emphasized. "Building better physical retail environments in these regions can not only meet daily needs but also drive long-term economic activity."
In addition, Zhu encouraged local governments in the Chengdu-Chongqing region to actively support homegrown brands with international potential.
"We've already seen successes like Chagee from Kunming and Chongqing's renowned hotpot and fashion brands," he said. "If more brands from western China enter global markets, it will boost regional identity and attract international investors. I'm very optimistic about the future."
(Huan Ran, as an intern, also contributed to the report.)