As the first rays of the Lunar New Year dawned, China witnessed a vibrant surge in consumer spending during the Spring Festival, painting a promising picture for the nation’s economic trajectory in 2024. The festivities, steeped in tradition, have evolved into a barometer for China’s consumer market trends and economic vitality.
According to data released by Meituan, a leading online service platform, daily consumption in lifestyle services during the Spring Festival holiday soared by 36% year-on-year, marking an impressive 155% increase compared to the same period in 2019. This surge underscores the robust domestic demand and the immense consumption potential among Chinese residents.
Similarly, China Unicom’s Smart Footprint data revealed a 73% uptick in foot traffic across key commercial districts nationwide since the twenty-third day of the twelfth lunar month—a week before the Spring Festival. The bustling streets and vibrant markets reflect a rejuvenated consumer confidence and an eagerness to embrace new experiences and products.
The Ministry of Commerce, in collaboration with relevant authorities, launched the online Spring Festival Shopping Festival, the inaugural event of the 2024 “Consumer Promotion Year.” Aimed at stimulating the holiday consumer market and meeting the public’s needs, the festival witnessed online retail sales nearing 800 billion yuan ($111.2 billion), an increase of nearly 9% from the previous year.
Regions across China have capitalized on new opportunities presented by the “Silk Road e-commerce,” with provinces like Guangxi, Sichuan, Hunan, and Heilongjiang hosting events such as the “Global Imported Goods Exhibition” and “Xiangyu Silk Road.” These initiatives have promoted nationwide online sales of high-quality and distinctive products from ASEAN, Central Asia, and other countries, satisfying consumers’ desires to shop globally without leaving home.
A notable trend during this period is the evident consumption upgrade among Chinese consumers, who are increasingly seeking higher-quality goods and services. Sales of high-end consumer goods, organic foods, and smart home products have seen substantial growth. Online platforms reported that the “New Year Economy” has boosted sales of large-screen TVs, while green and smart home appliances like floor cleaners, dishwashers, and smart locks have become the new essentials in household life.
Cultural and tourism consumption also surged during the festival. Meituan reported that in the first four days of the holiday, tourism orders for accommodations, scenic areas, and transportation more than doubled compared to the previous year. Additionally, national box office revenue during the Spring Festival period reached a historic high, highlighting the public’s growing appetite for cultural experiences and leisure activities.
The vibrant Spring Festival consumer marketplace is a testament to China’s steady and robust economic development. The observed trends—consumption upgrading, innovative consumption patterns, and an optimized consumption structure—are playing a significant role in promoting high-quality economic growth. As domestic consumption remains one of the key drivers of the economy, its stability and sustainability are pivotal in influencing the nation’s growth speed and quality.
In the context of a complex and fluctuating global economy, China’s strong domestic demand not only supports its own economic stability but also contributes positively to global economic recovery. The consumption boom during the Spring Festival sets a hopeful tone for 2024, suggesting that China is well-positioned to navigate challenges and seize new opportunities in the year ahead.
As businesses, investors, and global observers look to China, the Spring Festival’s consumption trends provide valuable insights into the country’s economic health and consumer behavior. The combination of traditional celebrations with modern consumption patterns illustrates China’s dynamic and evolving market landscape, signaling a prosperous year on the horizon.
Reference(s):
Spring Festival consumption boom: good start for 2024 China economy
cgtn.com
