2024 Small-Town Consumption Downgrade
The popularity of information platforms like Douyin has eliminated many information asymmetries (profits), making it hard for people to earn excessive profits. More people are delivering packages and food, and service attitudes have improved—likely because they value their job opportunities more. Security guards in residential communities, construction sites, schools, and public institutions who used to earn 2,000 yuan per month now require connections just to get hired. Mid-Autumn Festival mooncakes aren't selling anymore (they used to need to be snapped up quickly). Many employees in the public sector can't even receive their basic salaries on time, let alone other bonuses. Engineering contractors who used to start work with advance payments now have to fund the projects themselves upfront. Commercial storefronts are also starting to sit vacant. An increasing number of migrant workers are returning to their hometowns as big cities become unaffordable. Overall revenue is down more than 50% compared to previous years.
It's not that there are no growth opportunities. Due to the return-to-hometown wave, fishing tackle sellers are making money, mahjong parlors are thriving, fortune-telling and fengshui services are booming, lottery shops are crowded, and health and wellness businesses are doing well—mainly because older people fill their spare time with these activities. Education (after-school tutoring for primary and secondary students) is still profitable, since parents would rather see their kids studying something than sitting at home watching TV or playing video games.