China's retail sector demonstrated remarkable resilience in 2025, with official data showing a 3.7% year-on-year increase in sales to 50.12 trillion yuan ($6.9 trillion). The growth, driven by strategic government initiatives and evolving consumer behavior, sets the stage for dynamic market developments in 2026.
Daniel Yao, Head of Research at JLL China, told CGTN that Beijing's trade-in policy – which incentivizes upgrades to energy-efficient appliances and electric vehicles – contributed significantly to last year's performance. 'This isn't just about economic stimulus,' Yao emphasized. 'It's a calculated alignment with sustainability goals and quality-of-life improvements.'
Three key trends emerged in 2025 that continue shaping the market:
Premiumization: Consumers increasingly prioritize quality over quantity, with luxury goods and personalized services seeing double-digit growth
Rural-Urban Convergence: E-commerce platforms bridged the consumption gap, bringing premium products to county-level markets
Experience Economy: Spending on tourism, cultural events, and wellness services outpaced traditional retail categories
Looking ahead to 2026, analysts anticipate challenges from global supply chain adjustments but see opportunities in green technology adoption and cross-border digital services. Yao cautioned that 'success will depend on maintaining policy consistency while adapting to younger consumers' values-driven purchasing habits.'
