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BEIJING: Tang Yue, a 27-year-old teacher from the city of Guilin, in southwest China, steam-presses a blue dress and takes dozens of photos before choosing one to get her 200th sale online.
For a growing number of Chinese like Tang, affected by the loss of jobs, licenses and wage cuts, the consumer economy has begun to reverse. They are no longer buying, they are selling.
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Rather than emerge from the coronavirus epidemic and return to the shopping habits that helped fuel the world’s second-largest economy, many young people are unloading possessions and embracing a newly discovered ethic for tough times: less is more.
With Tang’s monthly salary of about 7,000 yuan ($ 988), the self-administered shopping addict said she has bought everything from Chanel’s lipsticks to the latest Apple iPad in the past three years.
But the adrenaline that comes with compulsive shopping is gone, said Tang, whose wages have been cut with the suspension of all the tourism management classes she tends to teach.
“The coronavirus outbreak was a wake-up call,” he said. “When I saw the collapse of so many industries, I realized that I had no financial cushion in case something unfortunate happened to me.”
READ: Help Wanted: China’s unemployed workers wait for help as COVID-19 hits the economy
There is no guarantee that the nascent minimalist trend will continue once the coronavirus crisis is completely over, but if it does, it could seriously harm China’s consumer sector and harm thousands of companies, from large retailers to restaurants, gyms. and beauty salons.
Undoubtedly, there are indications that the accumulated demand will generate an avalanche of expenses as the authorities reopen shopping malls, entertainment venues and tourist places. In South Korea, the first major economy outside of China to be affected by the virus, people invaded shopping malls this weekend to “buy revenge” to make up for lost time in closing.
There are some signs that a similar trend will consolidate in China, where some luxury shopping malls are starting to get busy, though luxury firm Kering SA, which owns Gucci, Balenciaga and other fashion brands, has said it is difficult to predict. how or when Chinese sales could return.
A recent McKinsey & Co survey showed that between 20% and 30% of respondents in China said they would continue to be cautious, either consuming slightly less or, in some cases, much less.
“The blockade provided consumers with plenty of time and reason to reflect and consider what is important to them,” said Mark Tanner, managing director of research and marketing consultancy China Skinny, based in Shanghai.
“With most of the time they spend at home, consumers also have more time and reason to sort things out that they don’t feel they need, so they don’t live near the clutter that is common in many apartments.”
#DITCHYOURSTUFF
Tang made a spreadsheet to keep track of his nearly 200 cosmetic products and hundreds of clothing items. Then he marked some essentials in red that he wanted to keep. In the past two months, it has sold almost 5,000 yuan worth of items in online thrift markets.
Online bargain hunting has become a new habit for some Chinese, as the stigma that once hung over second-hand goods began to fade.
Idle Fish, China’s largest online site for used products, reached a record daily transaction volume in March, its parent company Alibaba told Reuters.
Government investigators predict that used goods transactions in China may exceed 1 trillion yuan ($ 141 billion) this year.
Posts with the hashtag #ditchyourstuff have been trending on Chinese social media in recent weeks, garnering more than 140 million views.
Jiang Zhuoyue, 31, who works as an accountant at a traditional Chinese medicine company in Beijing, one of the few industries that can benefit from the health crisis, has also decided to resort to a simpler life.
“I used to buy too much and the discounts appealed to me easily,” Jiang said. “Once Sephora offered a 20 percent discount on all products, I bought a lot of cosmetics because I feel like I’m losing money if I don’t.”
Jiang Zhuoyue is holding her 9-month-old son. (Photo: Reuters / Thomas Peter)
Jiang, the mother of a 9-month-old baby, said she recently sold nearly 50 pieces of used clothing since the closure gave her an opportunity to clear things up. “It also offered me an opportunity to rethink what is essential to me and the importance of doing financial planning,” he said.
READ: Increased unemployment from COVID-19 fight threatens China’s poverty targets
Eleven Li, a 23-year-old stewardess, said she used to spend her money on all kinds of facial masks, snacks, concert tickets and celebrity-backed social media activities, but now she has no way to finance her expenses.
“I just found a new job late last year, then COVID-19 showed up, and I haven’t been able to fly once since I joined, and I haven’t received any wages,” said Li, who said he was trying to sell his Kindle.
The items that Jiang Zhuoyue plans to sell online. (Photo: Reuters / Thomas Peter)
Some are even selling their pets as they consider leaving large cities like Beijing and Shanghai where the high cost of living is finally catching up with them.
DON’T RETURN TO THE OLD WAYS?
As the coronavirus is controlled in China, the government is gradually releasing cities from the blockade, easing transportation restrictions and encouraging consumers to venture into shopping malls and restaurants by delivering cash vouchers worth thousands of million, worth between 10 yuan and 100 yuan.
But many people say they are still concerned about job security and possible pay cuts due to the struggling economy. Retail sales nationwide have plummeted every month so far this year.
Xu Chi, a Shanghai-based senior strategic analyst at Zhongtai Securities, said some Chinese consumers may try the “21-Day Habit Theory,” a popular scientific proposition that it only takes so long to establish new habits.
“We believe that people’s spending patterns follow the well-known theory, which means that the majority of people in China, who have been locked up in their homes for more than a month and have not made compulsive purchases, can break the habit and not go back to their old ways, “Xu said.
Jiang said she was determined not to go back to her free spending ways and that she planned to cook more at home.
“I am going to turn to cheaper products for some luxury brands,” he said. “I will choose the Huawei smartphone, because the (Apple) iPhone has too much premium brand.”
Tang, who has recently used 100 yuan of shopping coupons to stock up on groceries, is going to tighten the purse strings even more.
“I have set my monthly budget at 1,000 yuan,” he said. “Including one, and only one, bottle of bubble tea.”
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