Chinese New Year Celebration
In 2019, the year of the pig succeeds that of the dog. And like every year, China’s 1.4 billion people will celebrate this entry into the Lunar New Year by visiting their families, writing messages to their loved ones and opening their wallets to buy gifts.
All expenses during the New Year
Consumers spent a lot of money on Spring Day. In addition to the billions of yuan spent in Hong Bao (famous red envelopes in which tradition is to slip money in the new year), Chinese people have often cracked for digital appliances and fresh imported products, but also for experiences such as travel and entertainment.
This seven-day vacation is marked by meals and family gatherings, visits to family and friends, and entertainment activities. The most important expenses during the one week vacation are shopping, restaurant meals, travel, and leisure. Analysts and officials confirmed that strong domestic demand would boost the economy in 2019, as the government released more policies to boost consumption.
This year, retail and restaurant expenses exceeded all scores. For the first time, the trillion yuan was exceeded ($147.41 billion).
During this holiday period, new areas of spending such as the internet, personalized travel, and experiences, and digital services have been areas of growth.
Online sales have become an amply stimulating engine for domestic and import spending. According to the department’s Director General, Zheng Wen, “Durable consumer goods with high-tech features and branded foreign products have huge commercial potential”.
In addition to these growing areas, China UnionPay, the country’s largest bank card operator in terms of market share, also saw its total volume of transactions reach 1.16 billion yuan during the holiday period, an increase of 71.4% in annual slippage.
In conclusion, consumption has become the main driver of the economy, contributing to the country’s economic growth. Domestic demand has become a force for China’s economic growth.
Increase in Chinese spending during the New Year
So what is the reason for the increase in Chinese spending?
You should know that residential income has increased rapidly in recent years, so spending is easier.
Then, the goal for the National Commission is to develop a plan to create a powerful market by proposing 24 policies and measures to promote consumption expenditure in various areas such as telecommunications, automotive, care for the elderly and the elderly.
Thus the main challenge is for China to remain the world’s largest market for products and services, such as industrial goods, food and health services, which will provide enormous opportunities for global companies.