Retail News CRM

Tag: consumer demand

  • China Third-Quarter Economic Growth Estimated at 4.4%

    China Third-Quarter Economic Growth Estimated at 4.4%

    China expanded by an estimated 4.4 per cent year on year in the third quarter, falling short of official targets despite sustained momentum across artificial intelligence.

    The July to September result edged up only marginally from the previous quarter, held back by protracted weakness in domestic consumption and real estate.

    Tech gains trail real estate losses

    Surging investment in artificial intelligence and related hardware provided a lift to industrial output during the quarter. Overseas shipments also held firm, providing critical support for factory floors across the mainland.

    Those industrial gains failed to counterbalance the wider property slump. Housing market contraction continues to depress household balance sheets, limiting the broader economic impact of high-tech manufacturing.

    Consumer spending holds back recovery

    Domestic retail demand remained subdued throughout the three-month period. Shoppers kept spending tight, muting turnover across merchant networks and consumer brands operating in tier-one and regional markets.

    Sluggish consumer spending poses direct challenges for retail operators, landlords and supply chain networks that rely on strong mainland foot traffic. Without sustained consumer demand, gains in factory output cannot flow into the service sector.

    Export strength faces domestic drag

    Strong export numbers kept trade balances positive through September, but external demand cannot carry the entire expansion. Domestic store operators and commercial landlords continue to absorb the impact of cautious household budgets.

    Manufacturers focused on artificial intelligence hardware and export goods outperformed domestic consumer suppliers by a wide margin. That divergence leaves consumer-facing businesses exposed to prolonged margin pressure.

    Pressure builds on growth targets

    The slight quarter-on-quarter uptick leaves the full-year economic trajectory under pressure. Earlier quarters delivered steady factory output, yet household consumption failed to accelerate alongside industrial capacity.

    Official full-year gross domestic product targets require stronger domestic demand in the final quarter. The focal point shifts to upcoming retail sales figures and property transaction volumes across major metropolitan markets.

  • China Shifts Property Market to Completed Homes in Broad Policy Overhaul

    China Shifts Property Market to Completed Homes in Broad Policy Overhaul

    China ordered local governments on Friday to prioritise sales of completed homes over presales, overhauling the housing model to halt a property downturn that has dragged on domestic consumer spending.

    The joint directive from the housing ministry, the natural resources ministry and the National Financial Regulatory Administration targets newly transferred residential land alongside parcels sold without construction planning permits.

    Rules on land and developer financing

    Projects on newly transferred plots must adopt the finished-home sales structure, while sites with existing permits are encouraged to make the transition. Two accompanying notices from financial regulators cleared commercial banks to issue revised development loans and gave securities authorities room to back mergers and restructurings among listed property firms.

    The policy overhaul directly attacks the off-plan financing structure that left millions of buyers waiting for unfinished apartments and froze household balance sheets across mainland cities. “The policies announced today are stronger than what the market expected,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management, noting that weak domestic demand stemmed largely from real estate distress.

    Impact on consumer confidence and household wealth

    Property accounts for the bulk of Chinese household wealth, making housing stability essential for any rebound in retail sales, automotive purchases and consumer services across second-tier and third-tier markets. For consumer brands operating in China, weak property valuations have consistently translated into cautious discretionary spending and higher promotional discounting over the past two years.

    Municipal governments must now issue local execution timetables for the finished-home rules, with developers waiting for commercial banks to publish specific loan quotas under the updated development guidelines.

  • SM Retail’s First-Half Profit Rises Amid Strong Consumer Demand and Store Expansion

    SM Retail’s First-Half Profit Rises Amid Strong Consumer Demand and Store Expansion

    SM Retail achieved a 5% rise in net income during the first half of 2026, reaching US$143.8 million (PHP8.9 billion). The Philippine retail giant attributed this performance to sustained consumer demand for daily necessities and the ongoing expansion of its physical store footprint.

    Operating income saw an even stronger increase, climbing 12% to US$226.2 million (PHP14.0 billion). This indicates the company’s effective management of operational costs, even in a period of higher inflation. SM Investments Corporation President and CEO, Frederic DyBuncio, highlighted the resilience of the Filipino consumer despite recent economic challenges, noting the robust performance of their consumer-led businesses and the contributions from a diversified portfolio.

    Diverse Growth Across Segments

    The company’s food retail sector demonstrated consistent sales growth across its supermarket and minimart chains. Specialty retail also saw higher sales, particularly in the Home, Other Fashion, and Kids categories. The Home category’s growth was fueled by continued demand for alternative power sources, while the Other Fashion segment was boosted by brands like Kultura and Crocs. The Kids category benefited from increased spending on toys, pet supplies, and stationery.

    SM Retail’s strong showing contributed significantly to SM Investments’ overall consolidated net income, which reached US$741.7 million (PHP45.9 billion) for the first half, an 8% increase from the previous year. Retail accounted for 15% of SM Investments’ net income, following banking (47%) and property (27%). The group’s mall business also reported an 8% revenue increase to US$675.5 million (PHP41.8 billion), a result of higher occupancy rates, stronger tenant sales, and improved operational efficiency.

    Strategic Outlook for Continued Expansion

    Looking ahead, SM Investments CEO Frederic DyBuncio expressed optimism for the second half of the year, while acknowledging potential macroeconomic uncertainties. He stressed that the company’s diversified portfolio, prudent balance sheet, and disciplined approach to capital allocation position it well to continue investing in the Philippines. This strategy aims to create long-term value for customers, communities, and shareholders.

    The emphasis on physical store expansion and diversified retail formats aligns with broader trends in Southeast Asia, where companies often combine digital strategies with a strong brick-and-mortar presence to capture varying consumer preferences and reach underserved areas. Retailers across the region are increasingly focusing on everyday essentials and adapting their offerings to meet shifting consumer priorities, especially after periods of economic fluctuation.

  • US Market Could Open to Affordable Chinese EVs, Analysts Suggest

    US Market Could Open to Affordable Chinese EVs, Analysts Suggest

    The United States market is likely to open its doors to Chinese electric vehicle (EV) brands within the next few years, driven by growing consumer demand for affordable models. Despite existing trade barriers, analysts anticipate that the need for competitively priced EVs will eventually compel market access for Chinese manufacturers.

    Demand Outweighs Trade Barriers

    Currently, Chinese EV makers face significant hurdles in entering the US market, primarily due to protectionist trade policies. However, the analysis suggests that these barriers may not be sustainable in the long term, as American consumers increasingly seek more economical options for electric transportation. The rapid advancements and cost efficiencies achieved by Chinese EV companies like BYD and Nio make their offerings particularly attractive in a market where EV adoption is still highly dependent on price points.

    This potential shift underscores a broader global trend where affordability is becoming a key determinant in EV market penetration. Chinese companies have invested heavily in scaling production and refining manufacturing processes, allowing them to offer models at price points that Western counterparts struggle to match. Should the US market indeed open, it would represent a significant expansion opportunity for Chinese automotive giants, challenging established players and potentially accelerating the global transition to electric vehicles.

    Implications for Asian Automotive Sector

    For the Asian automotive and consumer tech sectors, this development holds considerable weight. A successful entry into the US market by Chinese EV brands would validate their global competitiveness and potentially set a precedent for other developing markets. It could also intensify the focus on cost-effective EV production and innovation across the Asia-Pacific region, as manufacturers strive to meet similar consumer expectations for affordability and advanced technology. RetailNews Asia has observed a similar push for budget-friendly EV options in Southeast Asian markets, where Chinese brands are already making significant inroads and influencing local market dynamics.