China's low-cost retailers intensify price war amid property crisis and high unemployment.

China's low-cost retailers' price war is intensifying, as they aim to attract frugal consumers affected by a property crisis, high unemployment, and economic uncertainty. While this strategy has boosted revenues for firms like Pinduoduo, economists warn that it risks cementing a deflationary mindset in the Chinese consumer. The relentless focus on price may force suppliers to cut costs, leading to lower wage growth or increased reliance on low-paid gig work.

June 11, 2024
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