China Market

While the virus is hitting Europe dramatically, the emergency is being finally contained in China, but its effects are still visible on the national and international markets.
Let’s set aside the stock suffering for a while and focus on the local consumptions, whose analysis provide interesting insights about what people do to spent time when confined to their homes.

While travels and restaurants suffered the negative effect of the epidemics, other goods saw their purchase rate surge hugely during the epidemics: hygiene product sale, for example, had +40% and masks nearly +90%, due to the medical recommendations carefully followed by Chinese citizens. Another sector that had a sale surge was that of online purchase, especially from the main platforms such as Tmall, and Taobao.
People also enjoyed online entertainment: for instance, the video app DAU had +42% in the first months of 2020 compared to the same period last year.

A huge surge in consumptions is to be expected once that all the restrictions are revoked. It’s the so called rebound effect, which will bring people back to restaurants, pub, malls and stores and on planes and trains, after the long pause at home: transportations and traffic are among the sector expected to have the biggest increase in the next months. Because China never stops: and it will soon prove it.