The latest industry report reveals that domestic outlet malls in China have attracted nearly 900 million visitors within a year. Behind this staggering figure lies an accelerated shift in consumption patterns, as the retail market transitions decisively toward a new era prioritizing "quality-to-price ratio."
Consumers are becoming increasingly discerning about product value—they still value quality and brands but insist prices must remain reasonable. This heightened pursuit of value is reshaping traditional retail channels while creating fresh growth opportunities for discount retail.
**From "Absolute Low Prices" to "Quality Discounts": The Rise of Discount Retail** The consumption battle once driven by "absolute low prices" has quietly evolved into a new phase—no longer fixated on rock-bottom pricing but advancing toward higher-dimensional "quality discounts." While consumers may be drawn by low prices, they won't impulsively purchase based solely on cost. Instead, they evaluate brand reputation, product quality, and associated services before making value-driven decisions.
According to NIQ data, price sensitivity has increased across major Chinese FMCG channels in 2024, including e-commerce (80%), O2O (72%), supermarkets (72%), hypermarkets (77%), and convenience stores (45%). This signals discounting as the new consumption norm, with shoppers favoring straightforward discounts and habitual purchases at discount stores. However, only 17% of respondents would compromise product value for cheaper alternatives.
This trend presents significant opportunities for outlets and discount retail, with industry vitality rising as brand discounts align perfectly with today's dual demand for consumption upgrades and cost-effectiveness. Data from the *2025 China Outlet Industry Deep Dive Report* shows that from July 2024 to June 2025, 205 premium outlets nationwide generated ¥180 billion in sales (up 8.9% YoY) and welcomed nearly 900 million visitors (up 12.5% YoY), demonstrating strong countercyclical resilience amid economic headwinds.
Among online discount retailers, Vipshop reported Q3 results exceeding expectations: net revenue grew 3.4% YoY, while Non-GAAP net profit surged 14.6%. Its Super VIP active users maintained double-digit growth, contributing 51% of online sales, reflecting stable expansion among high-value customers.
**Value Competition Reshapes Retail: How Will Discount Retail Transform the Market?** For discount retailers—especially outlets—the core competitive edge isn’t pure price wars but delivering superior value: higher-quality products at lower prices. Sustained success hinges on consistently offering high "quality-to-price" merchandise, demanding sharp product curation, supply chain integration, and inventory turnover efficiency.
Global discount retail leaders like TJMAXX (U.S.), Don Quijote (Japan), and Vipshop share one critical operational factor: highly efficient buying systems. Their professional global buying teams expertly select quality products at competitive prices. Through deep supply chain integration and meticulous management, these retailers not only provide value-driven options but also build formidable business moats.
As consumer needs diversify, discount retail continues spawning new formats, such as neighborhood discount supermarkets (now essentials for urban families) and ubiquitous snack discount stores across commercial districts.
Moreover, pragmatic consumers’ escalating demands for product quality, channel reliability, and shopping experiences are pushing discount retail toward further upgrades. For instance, in October, Vipshop partnered with China Inspection and Certification Group’s luxury authentication center to implement full inspections on high-end products—a first for e-commerce platforms.
In summary, amid abundant market supply and heightened transparency, discount retail has entered a "buyer’s market." To stand out in this elevated competition, businesses must precisely meet consumers’ multifaceted expectations for quality, price, and experience.
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