Emerging consumption trends propel growth of China's consumer market

China's consumer market has been steadily recovering, with the swift expansion of new consumption models injecting fresh momentum into consumption growth.

Photo shows a bustling night market in Donglin subdistrict, Wansheng Economic and Technological Development Zone, southwest China's Chongqing Municipality, March 8, 2024. (Photo/Cao Yonglong)

The recent government work report emphasized the development of new types of consumption, urging policies to encourage digital, environmentally-friendly, and health-related consumption. It also highlighted the promotion of new growth areas, such as smart homes, entertainment, tourism, sports events, and domestic brands featuring Chinese design elements.

Unlike traditional shopping malls, THE BOX, located in Chaoyang district, Beijing, is a hub that blends retail with curation, integrating culture, art, entertainment, leisure, sports, and dining.

Outside the mall, young people engage in skateboarding on the ground floor of an adjacent sports ground and play basketball on the second level. This sports ground has become a popular spot for youth to take photos and socialize. Inside the mall, the range of home goods for sale exhibits a style reminiscent of an art exhibition.

Tourists enjoy a train ride through rapeseed flower fields in a scenic area in Luoping county, Qujing city, southwest China's Yunnan Province. (Photo/Zhang Chi, Mao Hong)

From the 24-hour sports facility to a wide variety of art exhibitions, THE BOX targets young consumers by offering a diverse range of activities, attracting many with its distinctive and innovative consumption experiences.

The novelty and variety of these experiences are highly valued by many consumers.

As Chinese residents' demand for leisure and tourism grows and their potential is steadily unleashed, some physical stores have better catered to local consumers' needs and have become magnets for tourists by offering new experiences, according to Zhang Jixing, deputy director of the market research department at the Academy of the China Council for the Promotion of International Trade.

With the surge in the popularity of outdoor activities, numerous new consumer areas themed around outdoor pursuits are fueling the creation and development of more consumption scenarios.

In Chengdu, capital of southwest China's Sichuan Province, the Panda Action Sports Park, the region's first sports park themed on extreme sports and water activities, opened to the public in March 2023. Activities such as surfing, skateboarding, hoverboarding, and camping have gained immense popularity among young people at the park.

Photo shows a lawn-mowing robot during the 2024 Appliance & Electronics World Expo (AWE2024) at the Shanghai New International Expo Center, Shanghai, March 14, 2024. (Xinhua/Fang Zhe)

Shicong township in Nanxun district, Huzhou city, east China's Zhejiang Province, has been actively promoting sports tourism, creating new consumption forms that combine outdoor sports. The township has attracted crowds of tourists by hosting events such as fishing competitions. Last year alone, the township welcomed over 600,000 tourist visits, generating revenue exceeding 60 million yuan ($8.33 million).

In February 2024, China's Ministry of Commerce added 382 brands to the list of the country's time-honored brands, bringing the total number to 1,455. The ministry will implement multiple measures to promote the innovative development of these historic businesses and boost the consumption of China-chic products.

On Wangfujing Pedestrian Street in Beijing, products from time-honored brands, including those from the Beijing Enamel Factory, a cloisonne ware manufacturer, have been attracting the attention of tourists.

"These time-honored brands are symbols of nostalgia. It's incredible to see that they continue to update and pursue innovation year after year," said a college student surnamed Wu.

"I never expected these time-honored brands could launch products with such innovative features," Wu added.

Experiential elements have become pivotal considerations for people in both tourism and consumption. According to data from Qunar.com, an online travel agency, the search volume for immersive and experiential tourism products surged 5.2 times year on year in January 2024. Such products have become the preferred choice for many consumers.

An immersive opera-themed scenic area in Zhuxi county, central China's Hubei Province, opened to the public on Dec. 30, 2023, attracting over 100,000 tourist visits on the opening day, exceeding 1 million in just 14 days.

People ski inside an indoor ski resort in Ganzhou city, east China's Jiangxi Province, Feb. 24, 2024. (Photo/Zhu Haipeng)

The improvement of digital consumption infrastructure is driving more and more commercial districts and shopping malls to pursue digitalization by actively embracing new technologies.

The Jiefangbei-Chaotianmen business district in Yuzhong district, southwest China's Chongqing Municipality, is one of the country's first national demonstration intelligent commercial districts. Here, the district boasts southwest China's first GOGO unmanned automated supermarket, featuring virtual fitting rooms, cashier-less shopping, intelligent shopping guide services, and more, comprehensively meeting consumer demands and increasing visits by over 20 percent on average.

"The integration of digitalization and commerce is growing ever closer. This new model will increasingly impact the development of commercial venues, attract talent, boost investment, and drive new types of consumption," said Yang Qingsong, secretary-general of the China Commerce Association for General Merchandise.