Upgrading of consumption clear trend

In 2023, the total domestic retail sales of consumer goods reached 47.15 trillion yuan ($6.57 trillion), up 7.2 percent on the previous year. High-end and innovative products registered the fastest growth.

The domestic tourism industry experienced an explosive growth in 2023. Besides, new lifestyle demands also brought new consumption trends. Automobile sales grew by 12 percent in 2023 year-on-year, having set a new record, with the market's growth primarily driven by domestically produced electric vehicles. China hosted a total of 613 marathon events in 2023, with a cumulative participation of 5.67 million people. The popularity of marathons drove market demand for running shoes, and Chinese companies began to carve out a niche in the running shoe sector through technological innovations.

In a word, the upgraded and high-end part of the domestic consumption market exhibits the fastest growth, while the innovative sector demonstrates the greatest competitiveness. This indicates a robust demand in the domestic consumer market for high-end and innovative products, driven by advancements in lifestyle that are reshaping consumption habits.

Besides, emerging e-commerce platforms represented by some livestreaming apps as well as low-cost channels make the price competition for lower-end products even fiercer. This reflects the consumption differentiation in the domestic market.

For enterprises to win in such a market, the only way forward is to move toward the higher end through technology and product innovation. Otherwise, they risk being phased out of the market under the dual pressures of the gradual expansion of market share by high-end and innovative products and the intensifying price competition in the lower-end part of the market.

21ST CENTURY BUSINESS HERALD