China’s concert economy provides consumption boost, but sustainability doubts linger

The return of large-scale concerts in China has released revenge spending, but the levels might not be sustainable amid economic pressures

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Fans of US singer Taylor Swift line up to buy merchandise before the pop star’s Eras Tour concert at the National Stadium in Singapore in March. Photo: AFP

Published: 6:00pm, 27 Jul 2024

Soaked by pouring rain and listening to singalongs from fans, Taiwanese Mandopop icon Jay Chou brought the 400th concert of his career to an end in Changsha in central China’s Hunan province at the start of June.

And having kicked off the four-day stay in the city on May 30 as part of his Carnival World Tour, Chou had created a musical phenomenon.

On top of the initial ticket prices to see the “King of Mandopop”, the concerts sparked local consumption of over 500 million yuan (US$69 million), following similar spending surges ignited by his shows in Fuzhou and Hangzhou earlier this year, according to local media.

With China’s key retail sales growth lagging, live music shows have surprisingly thrived since coronavirus restrictions were lifted, spurring enthusiasm by local governments, who are actively supporting concerts and music festivals.

“Chinese consumers have been shifted to more conservative amid the economic downturn,” said Raymond Yeung, chief economist for Greater China at ANZ.

“While the desire to consume persists, consumers are adopting a more cautious approach. Consequently, affordable mass entertainment options like music concerts have enhanced their appeal due to their accessibility.”