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Feel-good spending set to unlock China's huge consumer potential

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Feel-good spending set to unlock China's huge consumer potential

Customers purchase goods at a Pangdonglai store in Xuchang, central China's Henan Province, Aug. 22, 2024. [Photo/Xinhua]

In the unassuming city of Xuchang in Henan Province, central China, the grocery chain store Pangdonglai has sparked a shopping revolution, which has transformed this lower-tier city into a mecca for the country's vast consumer population.

"We began lining up at 7:30," said a customer surnamed Ye, who drove over 400 kilometers from Wuhan to Xuchang, clutching two large bags of deli food he had bought from a Pangdonglai flagship store.

While some queue for hours to experience what many call "the ceiling of Chinese supermarkets," others merrily jostle for meticulously arranged braised meat, baked goods and seafood, which are no cheaper than other groceries.

At a time when some e-commerce platforms have launched hyper-competitive pricing to chase dwindling consumer loyalty, Pangdonglai's brick-and-mortar stores have taken an unconventional approach to achieve the commercial spectacle.

Pangdonglai founder Yu Donglai recognized that China's consumer scene is undergoing a seismic shift, and the key to boosting consumption is in mastering emotional alchemy, and tapping into feel-good spending.


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