Shenzhen has posted dazzling consumer spending figures driven by a package of incentives designed to encourage consumption and maintain economic growth, Shenzhen Economic Daily reported.
According to the latest statistics, the total retail sales of consumer goods in Shenzhen reached 796.483 billion yuan (US$113.94 billion) from January to October, up 2.4% year on year.
Since the beginning of this year, Shenzhen has unveiled a raft of policy measures and issued consumption coupons worth hundreds of millions of yuan in a bid to spur consumer spending, enhance the vitality of market players and stabilize economic growth.
To further unleash the potential of its auto market, Shenzhen has introduced a series of special automobile consumption promotion measures since March this year, which led to a strong growth in auto sales.
According to data from the local automobile dealer association, the city’s auto sector received nearly 20,000 car orders in this year’s May Day holiday alone, up 32% in sales and 80% in foot traffic year on year.
The consumption policy has effectively promoted industrial development. In the first half of this year, the output of Shenzhen’s automobile manufacturing industry above designated size grew by 91.1%, statistics showed.
Consumer spending on key products including home appliances and consumer electronics also witnessed growth due to the city’s subsidy incentives.
Data showed that from April 30 to May 4, sales of consumer electronics and home appliances in Shenzhen increased by over 30% year on year.
The overall foot traffic of major retail stores increased by over 40% from a year ago, and the sales of retail enterprises participating in the subsidy activities achieved a big increase.
“The subsidy incentives have significantly boosted the 3C (computer, communication and consumer electronics) market in Shenzhen,” said Huang Jun, executive vice president of Shenzhen Retail Business Association.
Huang said that these consumption promotion initiatives not only helped consumers get better deals, but also boosted retailers’ confidence and supported the development of manufacturing enterprises.
The Shenzhen Shopping Festival launched in August further stimulated citizens’ consumption enthusiasm.
The festival’s consumption coupons worth 2 billion yuan (US$286.4 million) focused on nine sectors such as automobile, digital electronics and fashion.
The quality and quantity of shopping malls in the city have also seen an increase since this year. In 2022, Shenzhen has planned on opening 27 new shopping centers, with an increase of 2.014 million square meters.
According to the municipal commerce bureau, Shenzhen has over 100 shopping centers each with an area exceeding 50,000 square meters, and eight shopping centers each with an annual revenue of over 3 billion yuan.