China's emerging consumption patterns leverage technology to create unique experiences
New consumption scenarios are transforming multiple sectors by integrating emerging modes, services, and experiences driven by advanced technologies like artificial intelligence (AI), blockchain, and big data. At the heart of this evolution, these technologies enable businesses to provide highly personalized and interactive experiences that blend the digital and physical realms.
TroibNews 
Visitors to Beijing's Yanqing District can now take to the skies to experience the Great Wall, showcasing a burgeoning trend of innovative consumption options across China.
There is a growing interest among consumers for experiences that fuse technology with entertainment. For instance, at Xiazhu Lake National Wetland Park in Zhejiang, visitors can take a helicopter tour to admire the wetland landscapes from above.
These new activities illustrate the emergence of fresh consumption scenarios that are transforming various industries through advanced technologies like artificial intelligence, blockchain, and big data. These technologies empower businesses to create highly personalized and interactive experiences that blend the digital and physical realms.
Integrating technology and innovation in consumption
A wide range of unique activities that merge entertainment, technology, and lifestyle is gaining popularity. For example, a shopping mall in Beijing features a 16-meter-deep pool constructed using 3D printing technology, offering an immersive underwater experience. Mr. Wu, a consumer, remarked, "It was a truly special experience. I've always wanted to find a place like this."
"New consumption is a hallmark of the digital economy," noted Bao Haixu, a professor at Lanzhou University. "It's not just a product of evolving consumer habits but a completely new paradigm that integrates digital technologies to meet diverse and growing demands."
According to Bao, "With the maturation of technologies such as 3D printing and virtual reality, consumers can participate in the product design process, enabling personalized customization."
Experts like Wang Liping from the Chinese People's Political Consultative Conference emphasized that innovation in technology is enhancing traditional shopping experiences. In Ningbo, a shopping mall has implemented AI and digital technologies to facilitate an "online-to-offline" shopping experience, allowing customers to virtually explore hundreds of stores and engage in features like augmented reality beauty try-ons.
"Traditional retail models are transforming, leveraging technology to offer not just products, but rich, multi-sensory experiences," Wang stated.
Key trends and policy support
Several key trends are driving a shift in consumer preferences toward more conscious and personalized consumption. Green consumption is gaining traction, with 73.8 percent of Chinese consumers indicating a preference for environmentally friendly products, as reported in the 2023 China Consumption Trends Report.
Simultaneously, the health and wellness sectors are experiencing significant growth, with projections for China's health industry to reach 9 trillion yuan by 2024, according to the Health Industry Consumption Trend Development Report released by the China Consumers Association.
The popularity of China-chic products—goods that merge traditional Chinese cultural elements with modern aesthetics—also characterizes the new consumption landscape. These products, which appeal particularly to younger consumers, have surged in popularity during the online shopping boom, with 58.3 percent of users having purchased them in the past six months, as noted in the 53rd Statistical Report on China's Internet Development.
Beyond retail, new consumption is also impacting sectors such as automobiles and electronics, supported by increasing government initiatives. A joint circular from the National Development and Reform Commission and four other agencies issued in June outlined strategies for developing new consumption scenarios.
This circular indicated that automobile-related products and services will diversify with offerings such as car races, camping experiences, and vehicle modifications. Additionally, the country will boost the consumption of high-tech electronics, including smart wearable devices and AI-powered humanoid robots.
Although online shopping is no longer a new trend, the continual evolution of e-commerce models has further fueled consumer spending. By December 2023, China's internet user base reached 1.092 billion, with over 80 percent of users engaging in online shopping. That same year, online retail sales in China soared to 15.42 trillion yuan.
However, the innovative models and technologies that are reshaping the digital marketplace are what truly redefine the shopping experience. There is a rising demand for smart home devices and wearables, while emerging consumption scenarios like instant retail and telemedicine are rapidly gaining ground. The China International Electronic Commerce Center has predicted that the instant retail market will expand at a compound annual growth rate of 25 percent from 2023 to 2030.
Despite these promising developments, challenges persist. Qi Yunlan, a researcher at the Development Research Center of the State Council, emphasizes that while the digital economy presents vast consumer growth opportunities, issues such as infrastructure gaps, inadequate regulatory frameworks, and the need to enhance the consumer environment must be addressed. "The development of 5G networks and data centers to support new consumption models, as well as policies that ensure a safe and high-quality consumer environment, are of importance," Qi remarked.
Ian Smith for TROIB News
There is a growing interest among consumers for experiences that fuse technology with entertainment. For instance, at Xiazhu Lake National Wetland Park in Zhejiang, visitors can take a helicopter tour to admire the wetland landscapes from above.
These new activities illustrate the emergence of fresh consumption scenarios that are transforming various industries through advanced technologies like artificial intelligence, blockchain, and big data. These technologies empower businesses to create highly personalized and interactive experiences that blend the digital and physical realms.
Integrating technology and innovation in consumption
A wide range of unique activities that merge entertainment, technology, and lifestyle is gaining popularity. For example, a shopping mall in Beijing features a 16-meter-deep pool constructed using 3D printing technology, offering an immersive underwater experience. Mr. Wu, a consumer, remarked, "It was a truly special experience. I've always wanted to find a place like this."
"New consumption is a hallmark of the digital economy," noted Bao Haixu, a professor at Lanzhou University. "It's not just a product of evolving consumer habits but a completely new paradigm that integrates digital technologies to meet diverse and growing demands."
According to Bao, "With the maturation of technologies such as 3D printing and virtual reality, consumers can participate in the product design process, enabling personalized customization."
Experts like Wang Liping from the Chinese People's Political Consultative Conference emphasized that innovation in technology is enhancing traditional shopping experiences. In Ningbo, a shopping mall has implemented AI and digital technologies to facilitate an "online-to-offline" shopping experience, allowing customers to virtually explore hundreds of stores and engage in features like augmented reality beauty try-ons.
"Traditional retail models are transforming, leveraging technology to offer not just products, but rich, multi-sensory experiences," Wang stated.
Key trends and policy support
Several key trends are driving a shift in consumer preferences toward more conscious and personalized consumption. Green consumption is gaining traction, with 73.8 percent of Chinese consumers indicating a preference for environmentally friendly products, as reported in the 2023 China Consumption Trends Report.
Simultaneously, the health and wellness sectors are experiencing significant growth, with projections for China's health industry to reach 9 trillion yuan by 2024, according to the Health Industry Consumption Trend Development Report released by the China Consumers Association.
The popularity of China-chic products—goods that merge traditional Chinese cultural elements with modern aesthetics—also characterizes the new consumption landscape. These products, which appeal particularly to younger consumers, have surged in popularity during the online shopping boom, with 58.3 percent of users having purchased them in the past six months, as noted in the 53rd Statistical Report on China's Internet Development.
Beyond retail, new consumption is also impacting sectors such as automobiles and electronics, supported by increasing government initiatives. A joint circular from the National Development and Reform Commission and four other agencies issued in June outlined strategies for developing new consumption scenarios.
This circular indicated that automobile-related products and services will diversify with offerings such as car races, camping experiences, and vehicle modifications. Additionally, the country will boost the consumption of high-tech electronics, including smart wearable devices and AI-powered humanoid robots.
Although online shopping is no longer a new trend, the continual evolution of e-commerce models has further fueled consumer spending. By December 2023, China's internet user base reached 1.092 billion, with over 80 percent of users engaging in online shopping. That same year, online retail sales in China soared to 15.42 trillion yuan.
However, the innovative models and technologies that are reshaping the digital marketplace are what truly redefine the shopping experience. There is a rising demand for smart home devices and wearables, while emerging consumption scenarios like instant retail and telemedicine are rapidly gaining ground. The China International Electronic Commerce Center has predicted that the instant retail market will expand at a compound annual growth rate of 25 percent from 2023 to 2030.
Despite these promising developments, challenges persist. Qi Yunlan, a researcher at the Development Research Center of the State Council, emphasizes that while the digital economy presents vast consumer growth opportunities, issues such as infrastructure gaps, inadequate regulatory frameworks, and the need to enhance the consumer environment must be addressed. "The development of 5G networks and data centers to support new consumption models, as well as policies that ensure a safe and high-quality consumer environment, are of importance," Qi remarked.
Ian Smith for TROIB News
