Part 2/7:
Decreasing income levels: Post-pandemic economic sluggishness, a crash in the property market, and youth unemployment have all suppressed consumer confidence.
Shifts in savings behavior: Despite reduced spending, savings have surged—household deposits increased by 12 trillion Yen in the first six months of 2023, marking the biggest growth in a decade.
These dynamics suggest that while young Chinese have the financial resources, their reluctance to spend is driven more by confidence issues than outright poverty.