EO Intelligence creates the New Consumption Index, formulated by 14 metrics, to rank the top 100 of Chinese highest-GRP (Gross Regional Production) cities.
Consumption takes a significant stake in China’s booming economy. The data released by the Ministry of Commerce (MOC) in 2020 January shows that the consumption industry contributed most to China’s growth over the last six years (2014 - 2019). Thus, this analysis of China’s consumption industry can provide a critical reference to understand the evolution of today’s market.
From the macroeconomic model below, EO analysts uncovered the U-shape correlation between China’s Urbanization Ratio and Consumption Ratio. At present, China is moving upward along the curve on the right-hand area – within approximately 50% - 60% urbanization ratio and 45%-55% consumption rate. It indicates that the consumer market becomes more active as the urbanization rate grows higher.
On the other hand, the government has proposed to establish International Consumer Center Cities. Some provincial capitals, such as Beijing, Shanghai, Guangzhou and Chengdu, have galvanized to promote innovative convenience stores and decorate shopping streets with local cultural features, to attract more international brands to settle.
This report looks into China’s consumer market in 2019 and provides a summary of the New Consumption, a buzz word in the New Economy. EO analysts discovered that the mainstream consumer demand has changed, shifting to a new orientation in the coming years.
The service quality and user experience are highlighted more than product efficacy in the report, according to the research. The evaluation benchmark system (of 14 metrics) in the analysis not only covers the economic performance (consumption capability, buying power) of the city-level consumption, but also evaluates the civic consumption by four motivations – convenience, fashion, health, and self-satisfaction.
The relationship between China's urbanization ratio and consuming ratio presents a U-shape curve.
The city scores show positive changes in economic performance and new consumption performance, while economic performance is significantly higher than the new consumption performance.
Top five cities are more balanced in economic performance and new consumption performance.
Beijing ranks top on New Consumption Index, followed by Shanghai, Guangzhou, Shenzhen, and Nanjing in that order.
Southern cities perform better economically than their northern counterparts.
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This report is in Chinese. An English version can be provided upon request as a paid service. Please email to email@example.com for more information.