Retail 2025: China Retail Predictions—Midyear Trends Update

Published – July 2025

Uncover how China’s retail landscape is transforming midyear under the forces of stimulus, AI and shifting consumer priorities.

Read this report to discover answers to these and other questions:

• How have stimulus packages influenced retail sales and consumer sentiment in China so far in 2025?
• What role are storytelling and immersive experiences playing in reshaping physical retail?
• How is AI evolving from a backend tool to a front-facing retail experience for consumers?
• In what ways is the traditional festival-led shopping journey giving way to more diversified and gamified retail interactions?
• What is the “pingti” trend and how is it redefining value and brand preferences among young Chinese consumers?
• How are brands and developers capitalizing on tech-driven, experience-focused store concepts in physical retail?

Data in this report include: macroeconomic performance and retail sales growth; analysis of AI use cases in consumer-facing retail; examples of new store concepts and experiential retail activations.

Introduction

Market Scale and Opportunity

China Retail 2025 Predictions—Midyear Update: Coresight Research Analysis

1. Stimulus Packages Put an End to Consumer Frugality
2. Retailers Are Providing Experiential Shopping Experiences with a Focus on Story-First Purchases
3. AI Is Migrating from Back-End Efficiency to Become More Consumer-Facing
4. The Shopping Journey Is Evolving from Festivalization to Diversification
5. Young Consumers Favor Value over Name Brands in the “Pingti” Trend
6. There Are Immense Opportunities for New Experiences in China Physical Retail

What We Think

• The Coresight Research View on China Retail
• Implications from This Report
• Impacts from AI

Notes and Methodology

9-page PDF report

Bottega Veneta (Kering), Pinduoduo and Zara (Inditex)

1. China Retail Sales (Left Axis; RMB Trl.) and YoY % Change (Right Axis)
2. China Quarterly GDP Growth Rate (YoY % Change)
3. China Retail Sales (YoY % Change)