It's nine o 'clock at night in the Beijing business district, restaurants are still bustling and the streets are ablaze with lights. KTV, cinemas and even some cultural exhibition areas are still open for business. When night falls, life has just begun.

“I am too busy while working, I only have time to go out to eat with my friends at night,” said Huang Jingxiang, working in a securities company in Shenzhen.

Nowadays, the word “night-time economy” frequently appears in people's sights. However, this word can be tracked back to 1970s in Britain. It refers to the consumption economy in modern cities that comes to life between 18:00 to 6:00 the following morning. This economy has local citizens and non-local tourists as the main consumption body. Tertiary industries such as leisure, tourism, shopping, fitness, culture, catering, etc. form its most prominent features.

Recently, the Chinese government has encouraged businesses and local districts to develop a night-time economy. Beijing and many other cities have successively issued policies related to the development of a night-economy. For example, the Beijing Municipal Bureau of Commerce issued 13 measures to boost the city's night-time economy and also to boost consumption, including launching late night dining canteen blocks, and increasing financial support, while Tianjin has encouraged operators to prolong business hours to attract additional customers.

Reflection of vitality in China

China's night-time economy has evolved from night markets to consumption of food, sightseeing, shopping, sports, exhibitions and performances, providing more possibilities for people to enjoy their nighttime hours outside.

“At present, China has become the world's second largest economy, and the ‘China speed’ has wowed the world. As the advancement of the Belt and Road Initiative led to the continuous integration among countries and regions, the potential of China's consumption market has been further stimulated. The cut in taxes and administrative fees has helped increase people’s income, and further improved household consumption. And the night-time economy is not only a ‘new blue ocean’ for urban consumption, it also injects new momentum for economic development,” Justin Sargent, president of Nielsen China, a global measurement and data analytics company, told People’s Daily Online.

He further pointed out that the night-time economy has created more jobs, brought opportunities for industrial development, and facilitated the prosperity of the service industry.

According to Xinhua, the "night economy", which mainly focuses on service consumption, is occupying an increasing proportion of the urban GDP. People’s consumption at night in Beijing, Shanghai, Shenzhen, Guangzhou, and Hangzhou accounts for about half of the total consumption of the whole day and is gradually on the rise.

The "night-time economy" has become a new growth point in the field of consumption.

Alibaba released a report regarding the "night-time economy" report on July 24, indicating that night-time shopping on Taobao, a Chinese online shopping platform, accounts for more than 36 percent of the total day consumption. Specifically, 21:00 to 22:00 is the peak time for Taobao transactions. Shopping online at night has already become an essential part of China’s consumption market, which indirectly reflects the vitality of China.

Demands for relaxation

The enhancement of consumption ability and the yearning for quality life have led to an increasingly diversified lifestyle and demands among customers. Interpersonal communication is one of the new demands for some people who prefer to hang out with friends and colleagues after a busy work night as it makes for a comfortable atmosphere to communicate and expand their friend circle.

Apart from that, people also have demand for relaxation and leisure. According to the report on Chinese white-collar workers’ night consumption released in September 2019, 72.6 percent of white collar workers believe that night-time entertainment should be used to relieve pressure, while 58.0% of those think it should be used to enjoy life.

“I really need to relax with my colleagues after work, or I feel my night is being wasted”, said Lang Yakun, working in a foreign company in Beijing.

However, white-collar workers are not the main force in the night-time economy. According to the post-95s late sleeper report from Alibaba in September 2019, individuals from the post-95s generation are very active in the fields of cultural consumption involving activities such as watching movies at night, watching plays, listening to music, reading books and watching performances.

According to the report, young people, especially the post-95s generation, usually engage in night-time activities between 22:00 and 02:00.

“The young generation has become the ‘main force’ of consumers underpinning the night-time business, and ‘night-time economy’ booms not only in first-tier cities,” said Sargent.

As for the reason, other than demands for leisure and relaxation, another reason is that Chinese youngsters are confident about their future. Nielsen research showed that the young generation was optimistic about future income projections and was willing to pay for the enjoyable living and quality of life. Besides, the concept of quality life and enjoyment in first-tier cities has penetrated into the lower-tier cities, as the market sinks.

Challenges ahead

Ju Jinwen, researcher at the Institute of Economics, in the Chinese Academy of Social Science, said that as for the development of the night-time economy, China still has a big gap when compared with some developed countries.

The famous night economy cities in the world, such as London, began to plan and lay out their night-time economy many years ago, rolling out favorable policies and measures to stimulate the growth of the night economy. For instance, London authorities started to operate the city’s underground on Friday and Saturday in 2016, as well as setting up a committee to promote the development and diversification of London night-time economy.

Ju mentioned that the traffic conditions and sanitation at night in China are still not as good as those in developed countries.

In an effort to promote the night economy, many cities in China have worked out new policies to sustain night consumption. Beijing and Guangzhou have promised to prolong the working time of public transportation until midnight over weekends, while Tianjin has planned to build more indoor entertainment for the night market so that consumption in winter will not be hindered by rigid weather conditions.

Sargent pointed out that night-time economy is not prolonged day-time consumption, and needs to be subdivided according to the specific demands of consumers. Meanwhile, company owners also need to adjust their business strategies, launch products and services suitable for night consumption.