'Golden Week' Market Consumption Analyzed

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Last updated at: (Beijing Time) Tuesday, September 24, 2002

'Golden Week' Market Consumption Analyzed

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Generally speaking, a concentrated holiday consumption market over a week's time as the oncoming National Day "golden week" may as usual have a positive role in stimulating mass consumption boosting China's economic growth. But with the passage of time consumption has become more diversified and rational and things may not be as they were in the past.

According to analysis, no great consumption heat seems to be expected during the coming National Day "golden week" on October 1-7 this year

Consumption heat during holidays in past years had built on many factors, essential was a holiday economy developed, with a weighty role played in stimulating consumption.

But this year, the factor had become obsolete, for a lack of other growth points this year's consumption growth should be back to normal.

According to statistics from National Statistics Bureau, retail volume of social consumption during this year's New Year and Spring Festival days early this year only increased by 8.5%, a decrease of 2.1% against the same period of last year. As a result, holiday peak is tending to be insipid.

Contrasting the past, available to people are now improved services provided on various industrial lines and no inconveniences found either in accommodation or traffic. However, service quality seems still a problem and no improvement has been made in this regard.

During previous golden weeks, lack of honesty and sincerity had been a major problem, fake commodities, price hike, false advertisements harassed holiday market, hence dampening holiday consumption.

Economists classify consumption into two categories: one is holiday consumption, the other is instant consumption including expenses on travel, education, health care, recreation, etc, this consumption will play a more obvious role in driving consumption.

Holiday consumption makes the peaks and off-season clearer, according to various shopping centers, though holidays can bring more business to them, yet post-holiday market business turns almost the same as on holidays.

From market view, after golden weeks, sales volume will drop. Experts said that mass consumption is not necessarily an ideal thing, holiday's consumption damages market balance.

Although people have already witnessed the power and potential of holiday economy, it seems businessmen do not realize the huge market potential yet, they lack a long-term development plan and business strategy.

People still remember that after the fervor of the first week-long May Day holiday, they generally have a feeling of the risks of a "bubble economy".

By PD Online Staff Li Yan

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