What: Coresight draws the most important conclusions for retailers after the closure of the National People’s Congress in China.

Why it is important: The keywords for retailers operating in China are to navigate at sight, be ready for any positive or negative signal, and be able to adapt in real time, as a fast recovery to prepandemic levels is unlikely.

The 2023 National People’s Congress took place March 5-13, in Beijing. During this much-awaited event, the government announced the lowest GDP target since 1976, at 5.0%, after a 3.0% growth rate in 2022. Coresight’s analysts estimate that this is the visible part of a much larger iceberg of pessimistic forecasts (including a youth employment rate of 20% in 2022), suggesting that a strong recovery is not expected in the short term.

Retail-relevant policy discussion during the 2023 NPC centered around private industry support, after past year’s backslash on education, gaming and tech, and increased investment in the digital economy, including cellular, data and e-commerce technologies. A Bureau for Data Security is being considered, which would have consequences for companies exporting or importing data to and from China. SMEs will also receive a stronger support for their digital deployment.

WHAT RETAILERS NEED TO KNOW FROM THE LATEST CHINESE NATIONAL PEOPLE'S CONGRESS