The Chinese restrictive policy to contain Covid-19, the geopolitical context and recent protests in China caused retail sales to plummet in November 2022. Whilst the luxury sector is likely to recover in 2023, this is less likely for general market brands.
In China, retail sales fell by 5.9% in November 2022 (year-on-year), greater than a Reuters prediction of -3.7% and an actual fall of 0.5% in October. This is the biggest drop in sales since the Shanghai Covid-19 lockdown last May. The poor November figures were mainly due to violent protests at factories across the country.
According to Garcia-Herrero, Chief Asia-Pacific Economist at Natixis, the Chinese economy is expected to recover by the end of H1 2023, but by then “inflation will rise...
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