Illustration: Xia Qing/GT

With Chinese consumer confidence gradually recovering, South Korean fashion companies with significant exposure to the Chinese market have rising expectations for performance improvements, as multiple fashion brands recorded substantial sales growth in China during the first quarter of this year, South Korean media outlet ajudaily.com reported on Monday. 

Another example is that Apple's iPhone shipments surged 20 percent in China in the first quarter, for the strongest growth among major vendors, despite an overall decline ‌as rising prices of memory chips boosted costs, Reuters reported in April, citing data from Counterpoint Research.

Industry insiders said that beyond the brands' competitiveness, China's consumption growth is the core driver behind the sales numbers.

The improving performance of these companies in China comes as some Western media outlets are hyping "insufficient domestic demand" or "weak consumption momentum" in China. This divide in views is not accidental; it reflects a fundamental gap in perception and mindset, one that will ultimately determine who gets to share in the long-term dividends of China's consumer sector.

The true state of a consumer market is defined by corporate operating data, actual consumer choices, and structural market changes. The fact that South Korean fashion companies can continue to achieve performance growth in China confirms two things. 

First, Chinese consumers' purchasing power remains resilient, and the fundamental domestic demand base has not weakened. 

Second, as long as a company deeply cultivates the market, adapts to local needs, and proactively aligns with China's consumption upgrade, it can find ample room for growth in this super-large market.

Those who persistently bad-mouth China's economic prospects often only capture fragmented information that fits their own stereotypes, turning a blind eye to the continuous upgrading of China's consumption structure, the emergence of new business models, and the massive purchasing power within the expanding middle-income group.

Chinese consumers' spending priorities are shifting fundamentally - education, elder care, healthcare, cultural tourism, and fitness are all rising as shares of household expenditure. Meanwhile, personalized, quality-driven, and experience-oriented consumption is surging, online-physical integrated models are expanding rapidly, and the growing middle-income cohort continues to generate vast demand for diversified, high-quality products and services. This growing volume of services consumption, which is not fully covered by traditional retail sales statistics, is precisely what many Western analysts may overlook.

The numbers also speak volumes. In 2025, China's total retail sales of consumer goods exceeded 50 trillion yuan ($7.4 trillion) for the first time, and consumption contributed 52 percent to economic growth, further consolidating its role as the "ballast stone" of the economy. 

Structurally, services consumption accounted for 46.1 percent of the per capita consumption expenditure of urban and rural residents in 2025, making it an important engine for expanding domestic demand. Demand for wellness, emotional fulfillment and immersive experiences is exploding, reshaping consumer segments and fueling rapid expansion for countless emerging consumer businesses.

Foreign companies that truly understand the Chinese market are anchoring themselves in market realities, keeping pace with consumption trends, and voting for China's domestic demand with tangible investments and performance. 

Data from China's Ministry of Commerce is telling: over the past three years, the number of existing foreign-funded enterprises in China has risen steadily and it now exceeds 530,000, with their total invested capital surpassing $3.6 trillion, according to the Economic Daily. This steadfast confidence, expressed through action, is far more convincing than any misleading rhetoric.

Challenges in the consumer market do exist. But short-term fluctuations and localized adjustments cannot overshadow the fundamentally positive long-term trajectory of China's consumption, nor diminish the unique strengths of its super-large domestic market. 

The structural upgrading of China's consumer market is still underway, and it has never lacked opportunities - the only question is whether a company can seize them.