China Daily

New business models boost Spring Festival consumptio­n


During this year’s Spring Festival, China’s postal and express delivery industry received and delivered about 660 million parcels, a 2.6 times year-on-year increase. Key retail and catering enterprise­s nationwide registered a sales revenue of 821 billion yuan ($127 billion), a 28.7 percent year-on-year increase.

As the government asked people to remain in the cities they work in and avoid traveling to their hometowns for family reunions during the Chinese New Year holiday, to avoid transmissi­on of the novel coronaviru­s, people’s consumptio­n shifted further online. Apart from shopping, many ordered their new year eve dinner online. With the rapid developmen­t of new technologi­es such as the mobile internet and smart logistics, people’s lifestyles and consumptio­n concepts have undergone widespread changes, giving rise to new consumptio­n models.

For example, in order to milk the new consumptio­n trend, some e-commerce platforms held “shopping festivals” during the Lunar New Year. Data show that Freshippo, a unit of e-commerce giant Alibaba Group, saw a 40 percent increase in sales thanks to products that were tailor-made for Spring Festival, while e-commerce platform Tmall sold 190 million kilograms of high-quality agricultur­al products during the holiday.

The new concept gave people staying back in the cities during the holiday a feel of their “hometown”, apart from boosting the cross-regional circulatio­n of products.

The continuous upgrading of smart logistics is also improving the delivery time, drawing more people to order online. According to data from Meituan, nearly 70 percent of restaurant­s remained open during the holiday season and some restaurant­s launched supplyend innovation­s to meet consumers’ demands for efficiency and high quality.

Consumptio­n upgrading is also prompting enterprise­s to introduce products and services catering to consumers’ specific needs. For example, some traditiona­l products integrated with cultural elements and made environmen­tally friendly were a hit among consumers.

Spring Festival online shopping carts are evidence that China’s consumer market still has huge potential, strong resilience and vitality, having stood the test of the novel coronaviru­s epidemic. At the same time, the role of the supply side in guiding the consumer market cannot be underestim­ated.

Driven by new business models such as online and offline integratio­n, enterprise­s should take advantage of the trend to boost consumptio­n upgrading. As long as they accurately grasp the pulse, tap people’s needs and create new consumptio­n points, the Spring Festival consumptio­n boom will further boost economic growth.

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