Promote consumption policy to strengthen economic "ballast"

In January 2021, the production index and new order index of China's consumer goods industry were both higher than the overall manufacturing industry, which were 54.1% and 55.2%, respectively. On the first day of the online shopping festival, China's online retail sales reached 36.3 billion yuan. The sales of a new duty-free store in Hainan exceeded 10 million yuan in the first two hours of its opening. The first month of the year, the consumer market has achieved a hot start, and there are many positive signs. It is worth noting that the consumption policy is still being increased. According to Economic Information Daily, duty-free market and rural consumption have become the next focus of consumption promotion. A number of relevant ministries and local governments are deploying more support measures to accelerate the upgrading of sectors and release the potential of the sinking market, so as to further consolidate the role of consumption as an economic "anchor stone".

The latest data from the National Bureau of Statistics showed that the PMI for the consumer goods sector was 52.3 percent in January, up 1.8 percentage points from the previous month, as sector growth accelerated. In terms of production and demand, both the production index and new order index of the consumer goods industry were higher than the overall manufacturing industry, which were 54.1% and 55.2% respectively, up by 1.5 and 4.3 percentage points compared with last month. It shows that with the approach of the Spring Festival holiday, the market demand of the consumer goods industry, which is closely related to residents' consumption, has been released obviously and the production activities of enterprises are relatively active.

In fact, the consumer market got off to a bright start during the New Year holiday. Data from the Ministry of Commerce showed that the average daily sales of key retailers in the country rose by 6.2% over the three days of the New Year holiday. During the period, the average daily sales of food, clothing, home appliances, digital products and jewelry in key retail enterprises increased by 3.5%, 22.8%, 9.9% and 10.3%, respectively. Seven duty-free shops in Hainan posted a 213% year-on-year increase in sales.

The "National Online Spring Festival 2021" was officially launched recently under the guidance of the Ministry of Commerce, Cyberspace Administration of the CPC Central Committee, the Ministry of Industry and Information Technology, the State Administration for Market Regulation, the State Post Bureau, the China Consumers Association and other departments and units. Online retail sales reached 36.3 billion yuan on the first day of the event.

Suning financial institute, a senior researcher at pay a lady in an interview with the economic information daily, reporter pointed out that the national economy overall situation improving, the masses of residents on subsequent economic trends expected to gradually improve, consumer confidence tends to increase, the superposition of prophase of policy effect, positive factors such as New Year's day holiday, the Spring Festival approaching, the consumer market to achieve the "warm" start, and presents a lot of bright spots.

It is worth noting that more heavy and favorable policies are still in place, among which the duty-free market and rural consumption have become an important source of strength. Recently, the General Office of the CPC Central Committee and the General Office of the State Council issued the Action Plan for Building a High-standard Market System, which made it clear that the policy of guiding overseas consumption back to China should be improved. We will encourage the establishment of a group of shops for tax rebates on departure in key cities, and promote the "buy and return" business in eligible shops for tax rebates on departure on the premise of effective supervision and controllable risks. Add duty-free cities and stores in Hainan's outlying islands.

Local deployments are also accelerating. In the recently released Hainan Provincial Government Work Report, important measures include making good use of duty-free "delivery by mail" on outlying islands, "storage on outlying islands and collection on returning islands" for local residents and duty-free purchase of imported goods, aiming to achieve duty-free sales of over 60 billion yuan in 2021. In the 14th Five-Year Plan period, it is proposed to perfect the duty-free sales network of the whole island, realize the full docking of foreign goods and domestic purchasing power, and attract 300 billion yuan of duty-free shopping back.

Shanghai has proposed that it will strive to achieve the implementation of the new policy of duty-free stores in the city by 2021, add 50 designated stores for tax rebates, cultivate and strengthen 20 local brands, introduce 30 international middle and high-end brands, strive to add 800 first stores, and build a global new product launch site.

Fu pointed out that China has been the world's largest consumer of luxury goods for many years. According to Bain's "Global Luxury Market Tracker", the sales volume of the global personal luxury market in 2019 is about $281 billion, of which 35% share comes from Chinese residents. However, more than 70% of luxury consumption is completed overseas.

"On the one hand, the epidemic situation overseas is still severe, the number of outbound tourists has declined sharply, and the consumption that used to be exported will be transferred to China. On the other hand, the gradual liberalization of the duty-free policy makes it more and more convenient to buy duty-free goods in China." These factors are pushing the country's huge duty-free consumer market to open and inject new impetus into the growth of the consumer market in 2021, Fu said.

At the same time, rural consumer market has also become the focus of policy support. On January 29, 2020, business work and operation of the press conference, the Ministry of Commerce, director-general of the department of consumption to promote Zhu Xiaoliang, says the next will be to expand the county township consumption driven and communities in rural consumption, strengthen the county township village logistics to the commercial facilities and site construction, encourage conditional trade channel to sink, fully release the rural consumption potential, improve the rural consumption environment. We will improve the distribution network of agricultural products, speed up efforts to strengthen the weak links in cold-chain logistics, and further improve the efficiency and reduce the cost of distribution of agricultural products.

Previously, the Ministry of Commerce and other 12 department issued the about boosting commodity consumption focus on several measures to promote the release of the rural consumption potential notice, clear will carry out a new car to the countryside and scrappage, encourage conditional area to eliminate the old appliances intelligent home appliances, furniture and buy green environmental protection furniture subsidies, swallow the rural consumption weakness weakness. Active deployment, the National Development and Reform Commission also will rural consumption as an important focus of mining consumption potential, to vigorously enhance the level of electrical business, express delivery into the overall rural and agricultural products circulation modernization level, speed up the country will perfect the three-level (county rural electronic commerce service system and express logistics distribution system, promoting rural branding, standardization, digital products and services, industrialization, guide the modern service extending to the rural development, boosting the rural consumption.

Guan Lixin, deputy director of the Institute of Circulation and Consumption under the Ministry of Commerce, told Economic Information Daily that as local policies to protect employment and people's livelihood continue to take effect, the growth rate of urban and rural residents' income has picked up steadily, and the relative income gap between urban and rural residents has further narrowed, laying a solid foundation for the release of consumption potential.

She pointed out that in the gradual elimination of restrictive consumer purchase regulations, promote the automobile and other consumer goods from purchase management to use management and other policy benefits, urban and rural cars, furniture and home appliances and other large consumption will usher in the upgrading boom. At the same time, the continuous improvement of rural business facilities and logistics system will effectively improve the quality of life of rural residents and drive the growth of rural consumption to further accelerate.

All these further strengthen the market's confidence in the growth of consumption. In Guanliyan's opinion, the consumer market in 2021 has a relatively solid foundation. Under the joint effect of supply-side reform and demand-side management, consumption will show a trend of steady progress, consumption contribution will gradually rebound, and the role of consumption as "ballast stone" will be further consolidated.