In the midst of China’s continued economic slowdown and dim employment prospects, consumers have been cutting back on their daily expenses. As a result, many businesses have rolled out budget-friendly “poor man’s meal deals” that have been gaining popularity among young people online.
Over the past few months, a number of businesses in China, including KFC, McDonald’s, and IKEA restaurants, have introduced these “poor man’s meal deals.” This trend has even extended to the furniture, cultural, and tourism sectors.
Olivia Wang, an immigration consultant in Beijing, told the South China Morning Post that in the past, when going out with friends, they would spend at least 1,000 Chinese yuan (about $138).
They would have dinner at restaurants averaging between 200 and 300 yuan per person, and then head to a spa in downtown Beijing.
“Now, people often talk about gatherings where each person spends around 40 to 50 yuan, opting for hearty meals like hotpot dishes instead of fancy Western cuisine. Even for massages, they choose services that cost under 100 yuan,” she said. “Everyone is reverting to a more practical lifestyle.”
Analysts believe that the popularity of these “poor man’s meal deals” across various sectors reflects a heightened sensitivity to prices among young people.
This trend bears similarities to the “loser economy” that gained traction a decade ago, highlighting how young people humorously present a sense of resignation in the face of heavy work pressure and limited income growth.
According to official data released by the Chinese government (data that has been questioned by many experts), layoffs and salary reductions in China were on the rise across the board in June, with major companies implementing cutbacks and salary reductions.
With consumer confidence showing little sign of recovery, retail sales in June grew by only 2% year-on-year, marking the slowest growth rate since the end of the pandemic lockdown in late 2022.
Zichun Huang, an analyst with Capital Economics, told the South China Morning Post: “Our forecast indicates that with consumer confidence remaining subdued, seasonally adjusted monthly retail sales growth could see a comprehensive contraction.”
“Consumer spending may continue to be restrained,” Huang added.
Xu Tianchen, an analyst with the Economist Intelligence Unit (EIU), said that the pursuit of budget-friendly products reflects the ongoing economic pressures faced by young people, which could have far-reaching consequences, including a higher likelihood of economic deflation, sustained high savings rates, and slowing growth.
“It is possible for the high-end market to collapse as well, pushing upscale brands to redesign their products and market strategies, such as introducing budget-friendly entry-level products,” he added.
Currently, major e-commerce platforms in China, including Pinduoduo, JD, and Taobao, have made “low prices” a core strategic focus.
Barbara Guo, a former project manager who now works as a legal assistant in Beijing, saw her salary cut in half.
She told the South China Morning Post: “I’ve been cutting back on expenses over the past few years, and recently, it’s become even more severe.”
She mentioned that in the past, when buying clothes priced under 1,000 yuan, she didn’t pay much attention to the cost.
“Now, I even bring my own lunch, buy small bottles of cosmetics, and shop for clothes on Taobao,” she said. Due to both personal and company reluctance to spend money, the entire legal industry is experiencing salary cuts, leading to intensified low-price competition.