Part 4/9:

The furniture malls operate on the premise of selling to consumers who are in the process of furnishing new homes. Yet, the current real estate environment has left few individuals able or willing to make such investments. This economic meltdown is not a short-lived phenomenon, as analysts expect a prolonged recovery period for the sector.

A Shift in Consumer Demand

The ongoing slump in consumer demand extends beyond the realm of real estate. Recent statistics indicate retail sales growth in China slowed to just 3% year-on-year by December 2024, marking a considerable dip from previous months. Consumer spending across various segments—particularly non-essential goods—has taken a hit, with declines of 26% in cosmetics and further downturns in clothing and beverages.