New consumption frontiers energize China's market vitality

BEIJING - Global financial institutions are increasingly bullish on China's economic development, with multiple 2025 outlook reports highlighting the nation's accelerating transition to high-quality growth driven by a stronger consumer sector and service industry.

During the recent Spring Festival, China witnessed a burgeoning consumption market, marked by record-setting sales revenues in "Guochao" -- or trendy merchandise inspired by traditional Chinese culture -- along with new records in intangible cultural heritage experiences, the ice and snow economy, and consumer goods trade-in programs. Driven by digital transition and technological development, new consumption models have continued to emerge.

Analysts noted that emerging consumption trends -- from product launches to winter sports and silver-haired consumer markets -- demonstrate China's evolving consumer landscape and its potential for sustained growth.

Trendsetters trade up

Shanghai's debut economy is transforming the city's retail landscape, increasingly led by homegrown brands launching global flagship stores. A notable example is SHUSHU/TONG, a local designer label that chose Shanghai's Jing'an district for its first global store. The store has since become a magnet for international visitors, especially from the Republic of Korea (ROK).

The store has evolved into a social media hotspot, where Korean visitors frequently create content for platforms like rednote, sharing their shopping experiences and fashion discoveries. This organic promotion has significantly boosted the store's international profile.

"New customers now make up half of our foot traffic, with ROK visitors accounting for 80 percent of first-time shoppers," says Yu Yaqi, head of SHUSHU/TONG's offline operations. "To better serve our international clientele, we're streamlining membership registration for foreign customers and optimizing our product display and inventory to match visitor preferences."

China's policymakers have identified the debut economy as a key driver of growth, making it a 2025 priority at December's Central Economic Work Conference. This strategic focus aims to upgrade consumption quality and accelerate industrial transformation, with regional governments already implementing supportive measures.

Positioned as a global hub for product debuts, flagship store launches and exclusive exhibitions, Shanghai is leveraging this innovative model. The policy blueprint includes an annual "FIRST in Shanghai" flagship event from March to May, designed to attract global attention as a premier platform for product launches.

Looking ahead to 2025, the city's government work report prioritizes scaling up the debut economy, along with emerging consumption sectors such as automobiles and green consumption.

Frost to fortune

"Endless snow slopes stretch before my eyes, with the howling wind echoing in my ears: That feeling of free flight delivers a unique thrill," said 28-year-old Sun Hong, an avid skier who travels to different resorts each winter to seek fresh experiences.

Winter tourism has become a major driver of China's economy, sparking nationwide interest in cold-weather activities.

Different regions have developed distinctive winter tourism offerings: Southwest China's Chongqing municipality focuses on themed events and travel routes, southern Guangdong province provides year-round indoor snow activities, while Xinjiang's Altay region features unique ethnic winter experiences.

Dai Bin, president of the China Tourism Academy, highlighted the role of technology and investment in promoting winter sports, with artificial snow and ice facilities making winter sports accessible even in the warmest regions.

A survey from the academy showed more than 70 percent of the respondents are willing to engage in winter leisure activities, with over 60 percent planning to maintain or increase their spending on winter tourism. The 2024-2025 winter season is expected to attract some 520 million trips, generating over 630 billion yuan ($87.86 billion) in tourism revenue.

Winter has evolved from a season of dormancy to one of vibrant activities, Dai noted. "In the past, winter meant freezing temperatures and a pause in daily life. Now, people embrace the cold and explore northern regions."

Silver is the new gold

Local governments have prioritized expanding elderly care products and services in their 2025 agendas. Guangdong plans to enhance research and development and promotion of senior-friendly products while accelerating the rehabilitation assistive devices industry.

Heilongjiang aims to boost service-oriented consumption in digital, elderly care and childcare sectors, with a focus on developing traditional Chinese medicine-based wellness and smart elderly care. Shanghai will deepen the application of technologies like smart nursing homes in elderly care scenarios.

The economic potential is substantial. According to a recent blue paper on China's silver economy, the sector is currently valued at 7 trillion yuan, with tourism being a key growth area.

Elderly adults in China had amassed wealth totaling 78.4 trillion yuan by 2023, according to the China National Committee on Ageing. The silver economy is projected to reach 30 trillion yuan by 2035.

The silver economy is creating new growth opportunities across multiple industries. "A growing number of seniors are demanding higher quality of life, prioritizing health and fashion, making the anti-aging industry particularly promising," said Chen Juanling, a Shanghai municipal lawmaker and public affairs general manager of cosmetics brand Chando Group.