E-shopping taps consumer ease, opportunities
Data from the NBS showed that China's retail sales of consumer goods, a vital consumption indicator, reached 44.08 trillion yuan in 2021, up 12.5 percent yearly.
China will adopt policy measures to boost consumption as part of efforts to keep economic fundamentals stable to ensure and improve people's livelihoods, according to a decision made at the State Council's executive meeting chaired by Premier Li Keqiang on April 13.
Relief policies for hard-hit sectors such as catering, retail, tourism, civil aviation, roads, waterways and railway transportation will be promptly and fully delivered, and local authorities are encouraged to intensify support and assistance for these sectors to stabilize more market entities in consumer services.
"Financial institutions should enhance support for the consumption of big-ticket items. Meanwhile, such consumption should be made more available in rural areas to help improve people's lives," Li said.
Liu Xiangdong, a researcher with the China Center for International Economic Exchanges, said consumption, as a significant pillar of economic development, is expected to maintain growth this year despite challenges brought by the COVID-19 pandemic.
Liu said a series of measures such as giving out shopping coupons should be taken to further unleash consumption potential. More supportive policies should be formulated to boost employment, increase residents' income and enhance their purchasing power, Liu said.
Noting consumption has served as a ballast stone for stable economic growth, Wen Bin, chief analyst at China Minsheng Bank, said the consumption upgrade will help guide enterprises to optimize production structure and drive transformation and upgrading in traditional industries.
More efforts should be made to cultivate new consumption growth points, such as supporting the purchase of new energy vehicles, and encouraging local governments to promote spending on green and smart home appliances in rural areas, as well as invigorating consumption in townships and rural areas, Wen said.
Mo Daiqing, a senior analyst at the Internet Economy Institute, a domestic consultancy, emphasized the importance of the online retail segment in sustaining and boosting consumption, thus helping enhance the resilience of the real economy.
"More consumers are keen on online purchases since the COVID-19 outbreak, and their pent-up consumption demand will be gradually released with the pandemic increasingly brought under better control in China," Mo said.
Chinese retailers should recognize and adapt to the post-pandemic "new retail", where the physical and digital world seamlessly merge－one where consumers can choose to live, work, travel, eat and play wherever and however they want, both online and offline, according to a report from global accounting firm PricewaterhouseCoopers (PwC).
Jennifer Ye, consumer markets leader for PwC Chinese mainland, said the pandemic and "stay-at-home economy" have spurred rapid growth in online shopping and digital enablement, propelling the integration of the online and offline consumption scenarios in China, with the personalized, high-end and trendy brands and products favored by Chinese shoppers.
With the transformation and upgrading of China's manufacturing industry and consumption upgrades, the guochao－a trend representing the rise of homegrown brands that weave Chinese cultural elements into their design or branding－is gaining popularity among young Chinese consumers, Ye said, adding that the post-1995s generation has emerged as mainstream consumers.
More efforts should be made to further cut taxes and fees to help small and medium-sized firms tide over difficulties, expand incomes of middle- and low-income earners as well as improve the business environment for market entities to shore up consumption, she added.
