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E-mail China.org.cn, May 11, 2024
Cover News:
This year, China launched a year-long program to stimulate consumption. The first quarter has ended. What trends have been observed in the consumer market? What measures will the Ministry of Commerce take to promote consumption? Thank you.
Xu Xingfeng:
Thank you for your interest in our efforts to promote consumer spending. Ms. Guo has already briefed us about the consumer market's contribution to economic growth in the first quarter, so I will not repeat it here. Regarding your question about the new characteristics of the consumer market, they can be summarized as follows:
First, growth has been stable. This is primarily reflected in bulk consumption such as automobiles, home appliances, and home furnishing. In the first quarter, new car sales grew 10.6% year on year to 6.72 million, including new energy vehicles, which increased by 31.8% year on year. Retail sales of home appliances by businesses above designated size grew 5.8% year on year, 1.1 percentage points higher than total retail sales. The building materials sector also saw a positive turnaround, with the growth rate of retail sales increasing from -7.8% at the end of last year to 2.4% in the first quarter.
Second, demand has been strong, particularly evident in service consumption. In the first quarter, retail sales of services grew by 10.0% year on year, six percentage points higher than goods. Per capita consumption expenditure on services grew by 12.7% year on year, accounting for 43.3% of per capita consumption expenditure. Catering revenue grew by 10.8% year on year to 1.34 trillion yuan.
Third, there have been multiple highlights, mainly reflected in new types of consumer spending. In the first quarter, China's online retail sales totaled 3.3 trillion yuan, up 12.4% year on year. Online retail sales of physical goods rose 11.6% to 2.8 trillion yuan, contributing 23.3% to China's total retail sales. The concept of green consumption has also gained popularity among consumers, with sales of green and organic food by key retail enterprises monitored by the ministry growing by about 14% year on year.
These are the three major characteristics of the consumer market in the first quarter: stable growth in bulk consumption, strong demand for services, and multiple highlights in new types of consumer spending.
China has launched a year-long program to stimulate consumption this year, as outlined in the government work report. Following the decisions and plans of the CPC Central Committee and the State Council, we actively promote relevant work. The overall approach involves adopting relevant policies and organizing activities to promote consumption. Regarding policies, we will adopt a problem-oriented approach, focusing on addressing bottlenecks and difficulties in the circulation sector. We will introduce a series of policies to boost consumer confidence. We have already introduced policies concerning trade-in of consumer goods, digital consumption, catering consumption, rural e-commerce, and recycling of renewable resources. Moving forward, we will continue to focus on the development of international consumption center cities, the innovative development of service consumption, and the construction of a modern commercial circulation system, and we will continue to introduce relevant policy measures.
In terms of activities, as previously introduced to the press, we are organizing a series of pro-consumption activities throughout the year to benefit all. We will arrange weekly scenarios, monthly events, and seasonal themes. When organizing these activities, we focus on four aspects. First, we organize activities during festivals and holidays. For example, we have already held pro-consumption events during the Spring Festival and Qingming Festival, and plan to organize such events during the upcoming May Day holiday as well, with enriched festive atmosphere. Second, we are emphasizing the integrated development of industries. Everyone knows that various sectors, including commerce, tourism, culture, sports and health, are moving toward integrated development. Following the Spring Festival, the 110th China Food and Drinks Fair was held in Chengdu, mixing exhibitions with tourism, music, and gourmet food to promote consumption in different scenarios. Third, we are highlighting key product categories. For key products related to trade-ins for old consumer goods, such as automobiles, home appliances and home furnishing, we will continue to carry out promotional activities. Fourth, we are emphasizing local characteristics. For example, Beijing's consumption season highlights local culture and cuisine, while Guangxi's "33 Consumption Festival" has fully integrated local ethnic cultures. Meanwhile, Fujian's pro-consumption campaign has showcased local cultural heritage. Thank you.
