PDD(US:PDD) Sou Hu Cai Jing·2026-01-11 06:12Core Viewpoint - The article discusses a significant shift in consumer behavior in China, where high-end consumption is not declining but rather migrating from traditional shopping malls to more value-oriented channels, reflecting a new consumer mindset focused on price sensitivity and value for money. Group 1: Consumer Behavior Changes - Shopping malls are experiencing a decline in foot traffic, with reports of more sales staff than customers in major cities like Beijing and Shanghai [1][3] - Consumers are increasingly unwilling to pay high markups in malls, with 72% stating that mall prices are too high, indicating a shift from being passive consumers to more discerning shoppers [9][10] - The high-end consumption market in China is projected to reach 1.63 trillion yuan in 2024, showing growth despite the decline in traditional retail [5] Group 2: Alternative Shopping Channels - Online shopping platforms, particularly those offering significant discounts, are capturing a large share of the high-end market, with platforms like Pinduoduo attracting users from first and second-tier cities [12][14] - Factory-direct sales are becoming more popular, allowing consumers to purchase products at significantly lower prices compared to traditional retail [19] - Outlet malls are evolving into desirable shopping destinations, with sales figures indicating substantial growth, such as the 61.7 billion yuan sales at a leading outlet in Shanghai [21][23] Group 3: Experience Over Products - There is a notable shift towards experiential spending, with service retail sales growing by 20% in 2023, indicating a preference for experiences over material goods [29] - High-net-worth individuals are increasingly prioritizing high-end experiences, with the market for such experiences reaching 97 billion yuan [31] - The rise of duty-free shopping, particularly in Hainan, illustrates the blend of travel and shopping experiences, enhancing consumer satisfaction [33] Group 4: New Consumer Values - Consumers are reclaiming pricing power, moving away from blindly accepting high prices set by brands and retailers [35][39] - The focus is shifting towards obtaining quality products at reasonable prices, reflecting a new consumer dignity that values smart spending over brand prestige [37] - The 1.63 trillion yuan in consumer spending is flowing towards businesses that respect consumer value and offer fair pricing, marking a significant evolution in the retail landscape [39]