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1. Continuous strong policy support to revitalise the market
China is reinforcing consumption growth through robust policy measures aimed at building a healthier and more resilient consumer ecosystem. The 15th Five-Year Plan for the first time identifies "a significant increase in household consumption rate" as a core national priority, calling for vigorous efforts and universal consumer-benefit policies. Recent initiatives include the Special Action Plan issued in March 2025 to boost confidence and spending, guidelines issued in June to expand financial support for consumption, measures issued in September to enhance service consumption quality, and plans issued in November to align supply and demand through industrial upgrades. RMB 300 billion in ultra-long-term special bonds has been allocated to support trade-in programs for consumer goods. A policy issued in January 2026 further introduces measures to incentivise green consumption during the "15th Five‑Year Plan" period, covering green agricultural products and energy-efficient home appliances.
At the local level, municipal governments continue issuing consumption vouchers to stimulate spending in dining, travel, entertainment, and sports, providing an immediate boost to market liquidity.
2. Shifts in consumption habits
Chinese consumers exhibit a dual pattern of pragmatism and emotional value spending. Economic uncertainty makes household spending more cautious, carefully weighing price and quality before purchases. Yet Gen Z and Millennials continue to allocate discretionary budgets to leisure, wellness, and cultural experiences. Collectible toys, blind boxes, and immersive pop-up events illustrate the rise of emotional value as a driver of demand, reflecting a desire for identity and joy beyond functional utility. Health and wellness remain a structural priority, with growing investment in fitness, preventative healthcare, and lifestyle services, reinforcing a long-term shift toward quality consumption.
3. Tech-driven consumption
Technology is reshaping the consumer landscape, with AI integration now mainstream across retail and services. Virtual salespeople, predictive commerce, and immersive XR (extended reality) shopping enhance personalization and loyalty, while generative AI accelerates R&D cycles and product innovation. Robots are entering households, offering assistance with chores, companionship, and security monitoring. These innovations highlight how technology is not only improving efficiency but also redefining consumer engagement, driving high-quality consumption growth and opening new avenues for investment.
4. Travel and tourism
China's tourism sector is experiencing a steady recovery, with inbound, outbound and domestic travel all strengthening. Inbound tourism continues to rebound, supported by China's latest visa-free and transit-free policies with multiple jurisdictions. Simplified entry procedures boost foreign visitors' confidence, fuelling demand for cultural experiences, leisure, and self-enrichment. At the same time, renewed demand for outbound travel and resilient domestic tourism continue to drive growth across hospitality, travel retail, cultural entertainment and experience‑based services. These trends align with the broader shift toward valuing non-material consumption and signal structural opportunities for service consumption and cross-border inflows.
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