A country-wide shopping spree in China today will provide a litmus test of Beijing’s efforts to boost flagging domestic consumption.
Singles’ Day, China’s bargain-hunting version of Valentine’s Day, usually heralds a retail boom. However, monthly sales have contracted three times this year, fueling deflationary fears.
While Beijing has pledged to bolster spending, it has also vowed to prioritize investments in key industries over seeking higher living standards in a bid to solidify its dominance of major manufacturing sectors. China’s most well-off may be ready to open their wallets, though: In a sign of confidence, LVMH, the parent company of luxury houses including Louis Vuitton and Dior, is set to open additional stores in the country this year.
