China’s Funeral Industry Struggles as Economic Factors and Consumer Choices Shift

Fuxing Yuan, one of China’s largest funeral service providers, is navigating a challenging landscape, experiencing a loss for the first time in a decade. The company’s performance is directly impacted by the economic environment, including inflation and the consequent impact on consumer spending. Results released indicate that the Shanghai-based company registered a loss of 261 million yuan (equivalent to 36.6 million US dollars) in the first six months of the year. Overall revenue for the company has fallen. Revenue derived from burying services, comprising largely land sales, dropped significantly, as did the revenue derived from general funeral services. The company stated several external factors behind the loss. These include consumers being more cautious with their spending on end-of-life services, and growing competition within the industry. The company is facing pressures, including an economic downturn, property market declines, and uncertain employment prospects. Retail sales growth has been modest despite government efforts to encourage domestic spending. There’s also a rise in eco-friendly and more affordable burial options, like scattering ashes at sea or in flower gardens. The price of burial plots has decreased, reflecting the changing trends.