CHINA’S slowing economy hasn’t stopped Gen Z from shelling out for travel and leisure. Since the start of the year, consumers born after 1995 have steadily increased spending on items such as movie tickets, beauty services and visits to bars and sporting events, according to consultancy Mintel Group Ltd. Some 40% of respondents spent more on leisure in August than a month ago, the survey found, a larger proportion than in other categories of dispensable consumption, like clothing. That along with travel are the two categories that have seen steady increases in spending among Chinese youth since earlier this year. “Experience-led spending, from going to the cinema and visiting exhibitions to exercising outdoors, has become the mainstream way for Gen Z to resume their lives post COVID,” Mintel senior research analyst Blair Zhang said. China’s youth are seen as key to growth in the country’s huge consumer market. But rather than pulling back on spending as the economy slows post-COVID, Gen Z consumers are instead re-evaluating their priorities. Many are splashing out on relatively affordable experiences rather than scooping up big-ticket items like gadgets or working toward longer-term financial goals, such as building up savings or buying a home. Overseas travel is out of reach for many, but domestic hotspots are booming. So is China’s box office, which is setting records. People are still spending in traditional sectors. Consumption data were strong in the first half of 2023, and even if retail sales undershoot expectations, firms are likely to top margin estimates for the second half given leaner cost structures and reduced inventory burdens, according to Bloomberg Intelligence. However, retailers with large youth customer bases in China — from Unilever Plc to Yum China Holdings Inc. and Chow Tai Fook Jewelry Group Ltd. — are relying on discounts and promotions to support sales. When they do shop, some young Chinese are more cautious than they have in stronger economic times. (SD-Agencies) | 