Guochao consumption continues to expand in China

(People's Daily Online) 13:12, January 11, 2024

Guochao, also known as Chinese trends or "China Chic," featuring fancy designs mixed with elements from traditional culture, was mentioned during the annual Central Economic Work Conference in December 2023.

According to the conference, new growth areas such as consumption of smart home appliances, entertainment and tourism, sports events and trendy domestic brands should be fostered.

A woman buys beauty products inspired by cultural relics collected in the Palace Museum in a mall in Shapingba district, southwest China's Chongqing municipality, Oct. 4, 2021. (People's Daily Online/Sun Kaifang)

Some previous central economic work conferences have also outlined plans for the consumption market. What sets this sector apart and why does it garner significant attention and support from the central government?

The first reason is that Chinese consumers exhibit robust purchasing power when presented with high-quality domestic products.

According to a research report from a well-known e-commerce platform, the per capita consumption of domestic products in brands with a certain sales scale increased by over 70 percent from 2019 to 2022.

The variety of trendy domestic products expanded by 231 percent. In first-tier cities, the market share of domestic products increased by 8.2 percent, and in rural areas, it increased by 10 percent.

Guochao products are also gaining popularity overseas.

China's trendy toy brand Pop Mart has opened offline stores in Thailand, the U.S., and Australia. Chinese beauty and cosmetics exports have experienced a compound annual growth rate of 8.3 percent over the past five years.

According to customs data, the export value of Chinese beauty, cosmetics, and personal care products increased from $3.8 billion in 2017 to $5.7 billion in 2022.

Chinese sportswear brand Erke saw its brand value top 50 billion yuan ($6.97 billion) after gaining popularity.

The themed tourist block in Xi'an, northwest China's Shaanxi Province, draws inspiration from the popular Chinese historical drama "The Longest Day in Chang'an." This tourist block serves as a successful model for integrating Guochao and cultural tourism by offering immersive consumer experiences and interactive activities.

The push to promote domestic products has triggered a surge in investments in related industries and consumption scenarios. Available data shows new domestic brands secured 200 rounds of financing in 2020, amounting to 3.11 billion yuan.

(Web editor: Hongyu, Liang Jun)


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