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Economic Watch: A glimpse of China's considerable consumer market vitality

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E-mail Xinhua, February 18, 2025

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BEIJING, Feb. 18 (Xinhua) -- While insufficient domestic demand remains a challenge, China has seen its consumption sector, a key driver of economic growth, unleash more vitality in recent months, with hustle and bustle in the market and new demand fueling and shaping trends.

According to the nine major tasks identified at the Central Economic Work Conference held in December 2024, the foremost priority for policy makers this year is to boost consumption, improve investment efficiency, and expand domestic demand on all fronts.

From buzzing market activity and revealing economic data to evolving consumer scenarios, China's consumption dynamics not only reflect the pulse of economic recovery but also highlight deeper structural transformations.

BUSTLING MARKET SCENES

During this year's Spring Festival holiday, crowds flocked to ancient town scenic spots, restaurants were fully booked for New Year's Eve dinners, movie theaters were packed with large audiences, and home appliance stores saw customers lining up in significant numbers.

In the Chaoshan area of south China's Guangdong Province, more than 200,000 people were attracted to Yingge dance shows. Yingge is a type of folk dance that was listed among the first batch of China's national intangible cultural heritages in 2006.

Yingge dance is just one example of many cultural attractions that have become popular among tourists. According to data from Fliggy, a leading online travel agency, the number of tourists participating in "intangible cultural heritage tours" that include folk performances had increased by 36 percent year on year during the 2025 Spring Festival.

The ice-and-snow economy has also emerged as a new hot consumer category. It is not only flourishing in China's northern regions but also gaining popularity in the south, where snow resources are relatively scarce.

For instance, since the opening of the Shanghai L+SNOW Indoor Skiing Theme Resort in September 2024, a venue which features the world's largest indoor ski facility, daily visitor flow has averaged from around 1,500 to 2,000 people. During the recent Spring Festival holiday, this number surged to about 8,000 visitors per day.

"As ice-and-snow consumption moves from niche to mainstream, it will help China build a robust ice-and-snow economy, offering a new and vital pillar for the country's economic growth," said Zheng Liansheng, a researcher with the Institute of Finance & Banking, affiliated with the Chinese Academy of Social Sciences.

Vibrant consumer spending data stemming from the 2025 Spring Festival holiday confirm a strong and energetic start to the year for the world's second-largest economy.

Domestic travel spending during the holiday reached 677 billion yuan (about 94.42 billion U.S. dollars), representing a 7-percent increase from the same period last year, according to data released by the Ministry of Culture and Tourism.

The Spring Festival box office also enjoyed a very positive 2025, with revenue soaring to 9.51 billion yuan -- a record high. The animated blockbuster "Ne Zha 2" was the star of the show as it became the first Chinese film to gross over 12 billion yuan, and securing its place in the top 10 of the global box office rankings.

China's policy-backed trade-in program for consumer goods served as a further boost, significantly lifting holiday market sentiment. Sales revenues for household appliances and audiovisual equipment surged by 166.4 percent compared to the 2024 holiday period, while sales of communication devices skyrocketed by 181.9 percent year on year, data from the State Taxation Administration revealed.

In addition, sales of new energy vehicles increased by 29.4 percent year on year to 944,000 units in January 2025 -- accounting for 38.9 percent of total new vehicle sales last month.

"On the one hand, trade-in programs offer consumers more affordable and greener high-quality products. On the other hand, they significantly promote the green transformation of industries such as the automobile and home-appliance industries," said Li Chang'an, a researcher with the Academy of China Open Economy Studies under the University of International Business and Economics.

NEW CONSUMER TRENDS

With the rise in living standards in China, people are increasingly pursuing personalized and high-quality goods and services.

In response, a Yonghui supermarket store in Beijing has streamlined its product range while enhancing product quality and service management, following its renovation initiatives that were inspired by popular supermarket chain Pangdonglai.

The store's daily average sales have more than quadrupled compared to pre-renovation levels, while its average transaction value has increased by over 60 percent, said Liu Shuhan, a regional deputy general manager of Yonghui Supermarket.

Notably, the consumption focus of residents is also shifting from goods to services -- fueling the rise of new consumer trends.

"The cleaner was a young woman from Sichuan, and she was incredibly efficient," said a woman surnamed Fan, a resident of Dongcheng District in Beijing, after recently booking a home-cleaning service on JD.com.

In addition to housekeeping, many venues and businesses have rolled out a variety of other new services in seeking to adapt to consumer demands, with such services ranging from online fitness options to pet care and on-demand personal chefs.

"As society develops rapidly and the pace of life accelerates, the demand for diversified and personalized services is growing," said Chen Ping, deputy manager of a housekeeping service provider in Jinan, capital city of Shandong Province in the east of China.

Technology is also fueling China's booming consumer market. For example, by having digital avatars and human hosts taking turns, brands can keep their live-streaming rooms running around the clock, effectively boosting their sales potential.

"The recent consumption boom highlights China's strong domestic demand potential and broad prospects for future growth," said Chen Lifen, a researcher at the Development Research Center of the State Council, adding that China's consumption market is expected to maintain a trend of diversification and high-quality growth in 2025. Enditem