The trend of young Chinese people not spending on love

During the prosperous years, the Qixi Festival in China has always been popular with young couples holding large bouquets of roses on the streets and social media. This is a traditional holiday to honor love and fidelity.

These days, people will rush to social media to show off their brand new iPhones and Louis Vuitton bags given to them by their lovers, as well as post photos of dinners at fancy restaurants on Chinese Valentine's Day, which falls on the 7th day of the 7th lunar month every year.

That was when China’s economic growth was the envy of the world. But this year’s Qixi Festival (August 10) was a very different story. People took to the internet to complain about the lack of gifts and holiday spirit, citing a sluggish economy and a tough job market.

A giant bouquet of roses is displayed on a commercial street ahead of the 2023 Qixi Festival in Shenyang, Liaoning province. Photo: VCG

Young people no longer want to spend money on dating.

The hashtag "Consumption plummets on China's Valentine's Day. Do young people want to pay the love tax?" became the No. 1 trending topic on Weibo on August 10, attracting 200 million views.

"The Qixi Festival is not as bustling as previous years. It feels almost deserted," one user wrote.

Several flower shop owners took to social media site Tieu Hong Thu to lament the lack of customers, posting pictures of unsold roses filling their shops.

Other posts ruefully recall how couples once had money to spend when the world’s second-largest economy was doing well. China is now suffering from a range of pains from sluggish consumer spending to a persistent property slump and a growing debt crisis.

Associate Professor Alfred Wu at the Lee Kuan Yew School of Public Policy at the National University of Singapore said young people, who spent lavishly during Qixi Festival, are now struggling to find jobs.

The drop in spending appears to be consistent with “weak consumption trends over the past two years,” said market strategist Yeap Jun Rong from trading services firm IG, adding that Chinese consumer confidence “is hovering around record lows.”

Chinese couples’ spending is a problem for Beijing and global businesses alike. In recent weeks, several Western multinationals, from cosmetics giant L’Oreal to carmaker Volkswagen, have sounded the alarm about weak demand in China as consumer confidence remains subdued.

Not getting married because of financial burden

On social media, many people complain that they cannot start a family because of debt or having to work long hours.

"When people born after 1990 are now in debt (tens of thousands of yuan), when '996007' becomes the norm, where do people find the mood to date?" one Weibo user asked.

"996" and "007" refer to the notorious work hours demanded by some of China's largest corporations: 9am to 9pm, six days a week. "007" means working seven days a week.

The general pessimism is also reflected in trade and other data. China's jewelry diamond imports in the first half of this year fell 28% compared with the same period in 2023, according to CNN calculations based on official customs data.

Diamond supplier De Beers said in its 2024 half-year report that "ongoing economic challenges" in China had slowed its expected recovery from a sharp decline in 2023.

China’s foreign direct investment debt, a measure of foreign direct investment into the country, fell by nearly $15 billion in the April-June quarter, according to data released Friday by the State Administration of Foreign Exchange. It was the second time this has happened since 1998, underscoring China’s failure to stem capital outflows.

A bus stop decorated with flowers during the 2023 Qixi Festival in Chongqing, China. Photo: China News Service

Consumer confidence is alarmingly low.

According to the Qixi Festival legend, the 7th day of the 7th lunar month is the only day of the year that the lovers Ngưu Lang and Chức Nữ can meet on a bridge over the Milky Way.

In previous years, it was a fertile opportunity for Chinese and Western companies to market their goods. But that has changed. Global CEOs can no longer rely on China as a trade pillar.

“China is the only place in the world where consumer confidence remains very low,” L'Oreal CEO Nicolas Hieronimus told analysts during an earnings call late last month.

He cited the weak job market and real estate as reasons for the difficulties, adding that lower-than-expected growth in the global beauty industry this year was largely a result of low confidence among Chinese consumers.

Last week, advertising company WPP said second-quarter revenue in China fell by nearly a quarter from a year earlier, and the outlook isn't much better.

"I expect the second half of the year to remain very difficult in China," CFO Joanne Wilson added on the earnings call. "I expect for the full year, (revenue) will be down double digits."

Volkswagen and Mercedes both have similarly pessimistic assessments of the Chinese economy.

“Consumer sentiment has not returned since the COVID restrictions were lifted early last year,” Mercedes Benz Group President Ola Kaellenius told analysts on July 26. “We don’t know how long it will take for the Chinese consumer to regain that confidence.”

Hoai Phuong (according to CNN)

Source: https://www.congluan.vn/xu-huong-khong-chi-tieu-cho-chuyen-tinh-cam-cua-gioi-tre-trung-quoc-post307823.html