China ushers in consumption boom ahead of Spring Festival

A view of preparations being done for the Longtan Park Temple Fair, one of the most popular temple fairs in Beijing, China, January 28. [CFP]

As China's Spring Festival approaches, fresh momentum is being added to the consumption drive of the world's second-largest economy, with the country fully leveraging its supersized market.

Ahead of the Year of the Dragon, the 2024 national online Spring Festival shopping season has already begun in mid-January and will last for the whole Chinese New Year holiday season, which runs until February 17.

As the first major online activity to boost the country's efforts in promoting consumption this year, this shopping season will integrate online promotion activities from various localities, e-commerce platforms and shops, and cater to consumer activities that are related to the Year of the Dragon.

The activities are also showcasing China's latest consumption trends. For instance, Beijing is placing an emphasis on digital consumption and is promoting 3C (computer, consumer electronics and communication) products, while Shanghai is targeting promotional activities with significant focus on health-related consumption.

Highlighting the new charm of trendy domestic goods, east China's Zhejiang Province is opting for shopping activities that highlight the intangible cultural heritage of the Chinese Lunar New Year.

Vipshop, one of China's major online discount retailers, witnessed the sales volume of "China-chic" clothing with the Year of the Dragon theme increasing by 120 percent in the first week after the start of the shopping season compared with the week that preceded it. The sales volume of Year of the Dragon theme sports sweaters surged more than three-fold on a monthly basis.

Some Chinese brands experienced rapid growth during the ongoing shopping season. For example, the sales volume of down coat brand SNOWFLYING surged 189 percent year on year.

In addition to the consumption of goods, Chinese consumers have also been increasing their spending on services.

The Chinese New Year's Eve dinner has risen in popularity, according to booking numbers. Data from e-commerce platform Meituan showed that as of January 21, reunion meal reservations at restaurants had increased more than three-fold compared with 2023, while some major restaurants in first-tier cities will be open for dinner for the full 24 hours on Chinese New Year's Eve.

According to Chinese travel platform Qunar, as of January 30, hotel bookings in popular travel destinations for the Spring Festival holiday surged 320 percent compared to the same period in 2023.

With input from Xinhua