Stay-at-home economy set to break new grounds
THE blossoming stay-at-home economy is likely to break new ground for growth and market size in China, as people have been encouraged to stay where they are for the Spring Festival holiday to stem the spread of the COVID-19 epidemic.
“I’ve bought a lot of food and snacks online, and will probably spend most of the holiday binge eating and binge-watching TV,” said Huang Jingjing, a 29-year-old bank employee who has decided to stay in Beijing instead of returning to her hometown in east China’s Jiangsu Province for the seven-day holiday.
The Spring Festival, or the Chinese Lunar New Year, is an important occasion for family reunions, which falls on February 12 this year.
In China, consumer preferences have been shifting toward e-commerce and online entertainment and education for over a decade. The COVID-19 epidemic, however, has accelerated the trend and proven to be a boon to companies that serve the stay-at-home economy.
Partly fueled by the epidemic, China’s online sales surged by 14.8 percent year on year to 9.8 trillion yuan (US$1.52 trillion) in 2020, making China the world’s largest online retail market for an eighth straight year.
Chinese authorities have pledged to guarantee sufficient supplies of daily necessities and asked e-commerce platforms and logistics companies to ensure normal operation during the period.
“We expect to see demand for at-home consumption continue to explode this year, especially during the Lunar New Year holiday,” said Wang Nian, an associate fellow with the Institute of Market Economy under the Development
Research Center of the State Council.
Online food delivery platforms are working with catering brands to launch prepackaged or semi-packaged meals for the holiday. Merchants are also targeting different groups by providing customized takeaway meal kits, such as single-person dinner packages and family reunion dinner packages for six to 10 persons, in a bid to woo more consumers. “The boom in online consumption will make up for the reduction in offline consumption,” Wang said.