Chinese consumers are spending more than Americans & US companies are benefiting from China’s spending surge.

The big spenders from China are returning, and American businesses are benefiting from this post-COVID rebound. After nearly three years of severe COVID-19 limitations, which Beijing later lifted, there is now a pent-up demand in the second-largest economy in the world.

Retail sales in China have increased, jumping over 18.4% year-over-year in April as people leave their homes to travel and spend money.

In comparison, American retail sales in March increased by just 2.9% year over year. The US Consumer Price Index, a measure of inflation, increased 5% in the same month, suggesting that continuously high inflation may be a factor in the poor retail sales. According to official figures from Beijing, China’s core inflation increased merely 0.7% from a year ago in March.

All of this indicates that Chinese demand is helping American businesses who are experiencing a slump in US spending. These five American businesses are among those that have profited from China’s economic growth.

Bookings for Airbnb were supported by a strong Asia Pacific performance

Image: shbarcelona.com

As a result of record-breaking bookings of 120 million nights of lodging and experiences throughout the time, Airbnb announced a 20% year-over-year increase in first-quarter revenue of $1.8 billion on May 9.

The home-sharing platform most dramatically reported a 48% gain in nights and experiences booked in Asia Pacific in the first quarter of the year, the greatest growth rate of any market. All markets saw a 19% increase in booking rates for nights and activities.

The demand from Chinese tourists in particular boosted Airbnb’s revenues for the quarter. While Airbnb discontinued its domestic operations in China in 2022, it still serves Chinese tourists abroad.

Starbucks’ China sales increased by 3%, turning around a severe 29% quarterly fall

Image: starbucks.com

Starbucks‘ most recent fiscal quarter, which concluded in March, saw earnings that were higher than projected owing to a robust recovery in Chinese demand.

In its most recent fiscal quarter, the coffee company with its headquarters in Seattle reported a 3% increase in same-store sales in China, turning around a severe 29% decrease from the previous quarter.

Starbucks’ worldwide sales increased in the second quarter of 2023 as a result of strong Chinese demand; global sales increased by 7% year over year, above analysts’ estimates, according to Refinitiv data.

Profits at Disney’s theme parks increased

Image: usatoday.com

Disney’s most recent financial performance benefited from the eased COVID-19 regulations thanks to its two theme parks in the Chinese city of Shanghai and the special administrative region of Hong Kong.

The company’s worldwide theme park segment reported a 17% year-over-year growth in revenues to $7.8 billion in the second fiscal quarter that ended in March. Operating earnings for the business increased 23% to $2.2 billion over the previous year.

MGM Resorts rebounds as tourism returns to Macau, a gaming hub
Image: avianaglobal.com

In the first quarter of 2023, US casino juggernaut MGM Resorts International outperformed Wall Street expectations, in part because of the booming gambling hotspot of Macau.

According to a press statement from MGM Resorts on May 1, CEO Bill Hornbuckle, “MGM Resorts is executing across all of its geographies and channels.” The MGM China subsidiary, he continued, reported a “swift return to profitability.”

According to official data, the Chinese special administrative area of Macau welcomed approximately 5 million tourists in the first three months of 2023, accounting for about 90% of the territory’s total visitors for the whole year of 2022.

Duty-free shopping in China increased Coty’s revenue
Image: caixinglobal.com

Due to an increase in its travel retail business following China’s reopening, New York-based beauty giant Coty announced fiscal third-quarter revenues of $1.3 billion that were better than anticipated. Analysts anticipated that sales would total $1.2.

According to business officials, travelers purchasing goods at duty-free stores in airports and popular shopping areas like Hainan Island in southern China increased Coty’s revenues.

Additionally, firm management have identified China as a key demand driver, despite the fact that the company’s 13% growth in the US markets dwarfed the development in the Asia Pacific area.

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