Consumption potential unleashed in spring
The week-long Chinese Lunar New Year holiday, Spring Festival, which ran from Jan 31 to Feb 6 this year, was not only an important occasion for family reunions but also a peak season for consumption.
China’s consumer market is expected to recover this year, the Year of the Tiger, the third in the 12-year Chinese zodiac cycle, with the pandemic increasingly coming under better control and more government support in the pipeline, industry experts said.
Online shopping has injected new impetus into China’s consumption and helped make the economy more resilient, they said.
“Consumption plays a fundamental role in China’s economic development and is the main driving force boosting economic growth,” said Wang Yun, a researcher with the Academy of Macroeconomic Research, part of the National Development and Research Commission.
Sporadic COVID-19 outbreaks in several parts of the country have had a limited impact on consumer buying, Wang said, adding that Chinese shoppers are increasingly attracted to high-quality brands.
The Chinese e-commerce company JD said sales of tiger-themed products, including jewelry, gold ornaments, cosmetics, perfumes, clothing and toys, have sold well since December.
Spending related to winter sports is in the spotlight this year as sales of skiing and ice skating equipment, such as suits, snow boots, gloves, caps and goggles, have grown robustly, triggered by the Beijing 2022 Winter Olympics, JD said.
Wang of the Academy of Macroeconomic Research said she is optimistic consumer spending in China will continue to grow this year, as will disposable incomes.
Retail sales of consumer goods are expected to grow 7-8% this year, she said.
Liu Xiangdong, a researcher with the China Center for International Economic Exchanges in Beijing, said consumption, as a significant pillar of economic development, is expected to continue to grow this year despite challenges posed by the pandemic.
Jin Xiandong, a spokesman for the National Development and Research Commission, said China will continue to expand domestic demand on the basis of effective prevention and control of COVID-19, deepen supply-side structural reform and promote consumption.
Final consumer spending accounted for 65.4% of China’s economic growth last year, driving GDP growth by 5.3 percentage points, Jin said.
The country will promote green consumption, bolster the integration of online and offline shopping, and accelerate e-commerce and logistics systems in rural areas, Jin said.
A report published by the consulting firm McKinsey & Company said China will continue to power global consumption.
Chinese consumers are taking the lead in terms of accepting new technologies and are at the forefront of changes in demographics and consumer behavior. These changes are likely to reshape global consumption, the report said.