BERNSTEIN30Julv2026SOCIETECENERALECROUPChina ConsumerChina Consumer Pulse 2026: Premium resilience againstapersistent weak consumer backdropOverallconsumptionremainedunderpressureinQ2despitesomeimprovementinconfidenceEuan McLeishsectors.In this comprehensve quatery tracker, we analyze key metis across consumerand inflationindicators, and wecontinued toseerelativeoutperformanceinpremiumacrosssectors including Appare,Sportswea,Alcohol,Beauty,Travel,Luxuy andAutos, spanningAneeshaShermanbothmassandpremiumcategornis.Wealsocoverthe implicationsforlapaneseConsumel917344845aneesha.sherman@bernsteinsg.comcompaniesRichardJ.Clarke, FCAGDP growth moderated to 4.3% YoY in Q2 from 5.0% in .1,with retal sales slowvinglevels,and positive CPl(C.196)helping to ease concerms around outight deflation. Premiumto+0.2%YoY despiteConsindicators gradually improvingvs late 2025 and Luxury segments were a relatve bright spo, with Premium BeveragesrecoveringLucaSolcaandBeautybrandsoutoerforminamass-marketbeers.andLuxurvHotels continuing toutperform.Meanwhil,big ticket gods and autosremained weak, and23126Maria Meita71700540ale pricing continued to rise in Q2, with a second ex-yearindicating that demand remainsolid. Fetienpricingisnowhigh-end variantsarenow+17-30%.In Beer.overall sell-EuniceLee,CFA/,up2%bin the quartercompared to-19 in Q1,and momentum,260cularV heathv at-+2%, whiletheof-tradestrengthened sequentilysourtoo Pickin China Beverages,followed by NongfuSpring.CallumElliott,CFA, ACAmolot@bernsteinsg.comirmbroaderretal, drivenbyonlie.3P Onine,ereasOflinetrendsremainmutedYugoShima777699432%6)and gainingsharewith strongproductHaoWang.CFAehnmanetoe decines-#NSD lfromtherecentuld normalizesoon,whileemerging brandsgrow double igits2627MufeiGao,in2026,with demand growth drvingmuleigao@bernsteinsg.comariculalystrongatthestremesofthemarketceinLuxury, andwithslowingsupplygrowth, weexpectthe recoveryMakotoMorozumibH2absentoficrementalmacroeconomic headwinds.IHGhas themosteaningfulChina exposureofourassetlighthotel namndercoverage.However,Chinals 3-vear undernerformance means the countrvis now a smaller comoonent offeerevenus, sftringtheimacdofrecentstrength[Continuesonnextpage..JSee the DisclosureAppendix of this report for required disclosures, analyst certifications and otherimportant nformation A tenatve y ist ou Gioba Res arch isc sur Website,FirstPublished:29Jul202621:00UTCCompletionDate:29,ul202620:53UTC
Euan McLeish+81359629611euan.mcleish@lbernsteinsg.com30July2026[Continuedfromfirstpage..JILuxury Goods: China luxury demand is stabilising but not yet reaccelerating, withvalue-consciousness and ongoing K-shaped polarisation remalining the definingfeatures ofthemarket. While most companiesthat have reported so farshowed stable,or improving trends, there is stillittle evidence of a broad-based recovery, with strengthispecific categories (most notably jewellery), higher-income consumer cohorts and ah and ulof rand-specificturnarounds such as Burbery.Chinese consumers,and Korea based on FX dynamics and relative pricing advantages, whileroducts that offe stronger ...
