During a recent interview, we explored the dynamic developments in China’s consumer market, which has shown increasing vitality and a significant boost in spending. As consumer demand continues to rise, several factors have contributed, including trade-in programs, vibrant commercial districts, ongoing promotional activities, and substantial subsidies aimed at stimulating consumption.
Reflecting on the recent National Day holiday, many regions implemented various discount policies to invigorate the holiday economy. Innovative consumer scenarios were introduced, enhancing the consumption structure and unleashing the spending potential of residents. According to data from the National Taxation Administration, consumption-related industries recorded an impressive year-on-year sales increase of 25.1% during the holiday.
In Guangxi, local authorities revised the vehicle trade-in subsidy standards, increasing the incentives for both new energy and fuel vehicles to 20,000 RMB and 15,000 RMB, respectively. Consumers can utilize a dedicated “vehicle trade-in” app to process their vehicle scrapping and purchase a new car. Meanwhile, in Sichuan, numerous promotional events centered around trade-ins have been launched, including Chengdu’s “Rongxing Zhi Zhi” consumption campaign for 2024 and Ziyang’s “Revitalize Life, Shop Ziyang” autumn consumption festival.
In recent years, China’s consumer market has expanded, giving rise to new business models and scenarios that add impetus to economic growth. Experts in the industry suggest that fostering high-quality development in the consumer market requires continuous introduction of diverse business models, such as dining and entertainment, alongside innovative consumption patterns. This strategy aims to enhance the commercial ecosystem of various regions and invigorate market dynamics.
Major cities are actively innovating, creating fresh consumer experiences. Beijing has united various commercial districts and scenic parks to launch over 400 distinctive activities, while Shanghai has introduced a 500 million RMB service voucher campaign targeting the dining, accommodation, film, and sports industries. In Hubei, the investment of 6.666 billion RMB has expanded trade-in subsidies to 23 categories of kitchen and bathroom products. Additionally, Qingdao has kicked off its “Shop Qingdao, Enjoy Consumption” shopping festival for 2024, complementing the new round of trade-in initiatives with over 200 promotional events citywide.
To foster a robust consumption atmosphere and fully harness market vitality, local governments are not only diversifying new consumption formats but also launching supportive policies to improve consumption conditions. For instance, Shanghai has allocated city-level financial resources for a “Le Shanghai” service voucher program across four sectors, while Hunan’s “Yuedong Huxiang: Fitness for All” initiative aims to encourage sports consumption through government funding and merchant discounts. In an effort to energize the cultural industry, Jiangsu has issued 30 million RMB in movie vouchers to further enhance citizens’ quality of life.
Since the beginning of this year, the implementation of consumption-boosting policies has continued to optimize market supply and release residents’ spending power, leading to rapid growth in the consumer market. Data shows that during the National Day holiday, domestic travel reached 765 million trips, a year-on-year increase of 5.9% and a 10.2% rise compared to 2019. The total spending by domestic tourists amounted to 700.81 billion RMB, reflecting a 6.3% year-on-year increase and a 7.9% rise from 2019 figures.
“Market enthusiasm indicates that the strong demand for cultural and tourism consumption is translating into tangible spending,” noted one industry expert. They emphasized the need for local governments and departments to capitalize on this momentum, improve the cultural and tourism market environment, establish robust industry standards, enhance consumer dispute resolution mechanisms, elevate service quality, and innovate consumption models to sustain public enthusiasm for cultural and tourism spending.
China’s consumer market is buzzing with activity, showcasing the nation’s economic vitality. “The booming holiday economy highlights the vastness of our market, the strength of our economic resilience, and the immense potential that leads the world to witness a vibrant China,” stated Pang Chaoran, a research fellow at the Ministry of Commerce.
