Economic Downturn in China Leads Consumers to Save More, Spend Less on Luxuries

Chinese consumers are spending less and saving more due to economic downturn, gravitating towards discounts and cheaper options.

Coffee chains like Luckin and Cotti are locked in a vicious price war, competing to undercut each other's prices to as low as 15 cents a drink.

The government hopes increased consumer spending can spur growth, but waning confidence is leading people to cut back and save instead.

Discounter retailers like Pinduoduo are seeing sales growth, while fancier chains like Starbucks and Heytea are lowering prices to compete.

Job losses and shrinking incomes are forcing consumers like Wang Chao to severely reduce spending just to get by.