'Debut economy' redefining consumption

Holiland, a well-known domestic bakery chain, set a sales record on the opening day of its first store in South China at Shenzhen's COCO Park in December last year. Almost simultaneously, the country's first-ever Debut Economy Development Promotion Center was established in Jinjiang district of Chengdu, capital of Southwestern China's Sichuan province, marking the integration of "first stores, first exhibitions and first shows" into the urban development strategy.

The two developments, though seemingly unrelated, are in fact part of a major shift in China's consumer market. The concept of "debut economy" is moving beyond being a marketing buzzword toward becoming a game-changing business model. The debut economy is about using "first-time" innovations to change how supply and demand operate, how industries collaborate and how cities create more value.

Let's consider what happened with Kaojiang (a restaurant franchise specializing in grilled fish), in Beijing's Heshenghui mall in 2024. Their first store opening triggered a frenzy, with people queuing for up to nine hours to just get a table. Consumers were queuing up not just for a meal, but also the "first store experience".

The driving force behind this behavior is the shift in consumption values, especially among Gen Z(those born between 1995 and 2009).

This shift in consumer behavior isn't just a passing trend. First-time releases have become market signals in their own right. Brands leverage exclusivity to generate buzz, while consumers, through social media check-ins, videos and posts, turn their consumption into a viral social event. This feedback loop creates a self-perpetuating cycle of brand hype, consumer participation and social media engagement, making the debut economy its own marketing engine.

The debut economy is helping China climb up the global value chain — from manufacturing to innovation. In the traditional "smiling curve" model, Chinese companies had been stuck in the low-value-added end of production. But this pattern is being rewritten by first-time releases. Take Shanghai's model of combining "global product launch-local R&D headquarters clustering" for instance. Between 2018 and 2023, this strategy attracted more than 4,500 global brands to launch their products in China, fueling local R&D investment and sparking a wave of innovation.

But the debut economy is disrupting traditional product development by shrinking the timeline between research and market entry of products based on that research. Companies can quickly get feedback from first releases, and attract resources from both upstream and downstream partners by early demonstration of their products, creating an innovation ecosystem.

Cities, too, are being redefined by the debut economy. In the past, shopping districts thrived partly because of their location and the mix of brands they housed. Today, it's all about creating the first-release experience. For example, Chunxi Road in Chengdu has created a "first-store matrix" by blending cutting-edge technology with local cultural elements. The result: more than 600 first-time stores, a 40 percent increase in footfalls, and a 50 percent boost in revenue.

This transformation brings dual benefit. One, it gives cities a unique identity, turning them into "must-experience" destinations. And two, continuous innovation is helping upgrade urban infrastructure — from smarter management systems to strengthened intellectual property rights protection. Cities are not just accommodating demand, they are also leading the charge in innovation.

But while the future looks promising, there remain hurdles to overcome. The rush for short-term traffic can sometimes overshadow the depth of real innovation, and not all "first releases" live up to the hype. To ensure the debut economy's sustainable growth, three things are necessary.

First, the focus should be on innovation, not hype. A genuine first release should be based on innovation, not just be a marketing gimmick.

Second, collaboration, not quick gains, should be the goal. Successful first-time releases need a strong industry ecosystem to support them. A nimble supply chain, effective IPR protection, and a collaborative environment will play a key role in making the debut economy a sustainable, instead of a fleeting, trend.

And third, a cultural integration, not a cookie-cutter, approach should be adopted. In a globalized world, cities must integrate local culture into their first-release events to avoid being "bland".

The debut economy isn't just a flash in the pan. It's a reflection of China's evolution from a consumer market driven by size to one driven by quality and innovation. The competition of the future won't be about who speaks first — but about who can keep innovating. When first-time releases become engines of real value creation and urban spaces evolve into true hubs of innovation, that's when the transformation of China's consumer market will truly unfold.

The author is a professor at the Economics and Management School of Wuhan University.

The views don't necessarily reflect those of China Daily.

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