Market for Consumption Witnesses Robust Beginning to the Year of the Snake
Consumption market experiences a robust beginning to the Year of the Snake.
TroibNews 
**Editor's note:** Zhou Jianjun is an assistant researcher at the Institute of State System Research and School of Economics, Zhejiang University. The article reflects the author's opinions and not necessarily the views of CN. It has been translated from Chinese and edited for brevity and clarity.
During the 2025 Spring Festival, marking the Year of the Snake, various regions across China implemented measures aimed at stimulating consumer spending. This included issuing consumption vouchers in sectors such as culture and tourism, retail and dining, and automotive and home appliances to reenergize the holiday economy.
Consumption has emerged as the leading force behind China's economic growth, making its enhancement crucial for stability. In 2024, final consumption expenditure contributed 44.5 percent to economic growth, significantly overshadowing the impacts of investment and net exports. The Central Economic Work Conference has called for robust initiatives to enhance consumption and expand domestic demand across all areas in 2025. As such, it is essential to boost consumption, create diverse consumption scenarios, and thoroughly explore the spending potential of residents to foster economic development and stabilize growth.
Holiday consumption plays a critical role, with active spending during the Spring Festival fueling consumption trends for the entire year. Typically, holiday spending comprises about 10 percent of total annual retail sales. Research indicates that fast-moving consumer goods sold during the 2024 Spring Festival represented 20 percent of the annual total. Items such as automobiles and home appliances are commonly purchased during this festive period. The Ministry of Commerce reported that national online retail sales during the 2025 Chinese New Year Shopping Festival exceeded 700 billion yuan.
Meituan's data showed a 305 percent increase in online reservations for Chinese New Year's Eve dinners made two weeks in advance compared to the previous year. Additionally, the China Film Administration reported that box office revenue on the first day of the Spring Festival reached 1.805 billion yuan, with 35.15 million viewers, setting records for both single-day box office and attendance.
Furthermore, it was projected that the total number of inter-regional trips from January 14, the start of the Spring Festival travel rush, to February 2, would reach 4.8 billion, marking a 7.2 percent increase compared to the same period in 2024. These figures suggest a promising onset for consumption during the Spring Festival, which bodes well for reversing recent sluggish spending trends, rebuilding consumer confidence, and stimulating overall consumption growth in 2025.
New consumer products, models, and scenarios have emerged, highlighting the need for innovative consumption dynamics to fulfill domestic demand. This year has seen a surge in unique products and purchasing models, fostering new quality consumption forces. E-commerce data revealed remarkable growth in the sales of products like Thai durians, Yunnan blueberries, and Chilean cherries during the Spring Festival Shopping Festival, with increases of 220.99 percent, 75.32 percent, and 63.96 percent, respectively.
Moreover, the extended eight-day Spring Festival, the first since its designation as a UNESCO Intangible Cultural Heritage of Humanity, saw a rise in consumer interest in intangible cultural heritage experiences. Searches for related experiences and handicrafts rose substantially, with inquiries increasing by 168 percent and 321 percent respectively, while flight bookings to heritage destinations doubled.
Spending on pets also gained prominence in the consumption landscape during the Spring Festival. Many pet owners purchased new clothes, toys, and special "Chinese New Year's Eve dinners" for their pets. The "2025 Taobao Report on Chinese New Year's Eve Dinners for Pets" noted that searches for pet-specific dinners skyrocketed by over 150 percent, with transaction volumes climbing nearly 60 percent year-on-year.
Emerging consumption models, including the "goods economy" related to anime, the "snow economy" focused on winter sports, the "silver economy" aimed at the elderly, and the "debut economy" characterized by innovation in products and business models, are also gaining traction. This reflects untapped consumption potential among Chinese residents, highlighting the demand for personalized and niche products.
Government efforts to encourage consumption have been robust, with action plans set to unlock the Year of the Snake's consumption potential. The strong start to the consumption market is closely linked to these initiatives, which have significantly boosted residents' spending. Starting January 20, consumers purchasing certain digital items benefited from a 15 percent discount on the final price, capped at 500 yuan per item.
In various regions, local governments have introduced their strategies to further stimulate the economy. For instance, Beijing launched the "Bring Beijing's Time-honored Brands Home" initiative. On January 7, the "National Time-honoured Brands Carnival," also known as "Celebrating Chinese New Year in Golden Wangfujing Street," began along Wangfujing Pedestrian Street, showcasing over 100 consumer events designed to create an enjoyable shopping environment.
In Guangzhou, themed festivities around "Celebrating the Chinese New Year in Guangzhou, Appreciating Flowers in the Flower City" included more than 2,000 cultural, tourism, and sporting activities, immersing participants in the festive spirit. Such government efforts have contributed to the strong consumer market start in 2025, significantly bolstering consumption growth for the rest of the year.
Lastly, to sustain this strong onset of consumption throughout the year, further policy measures are necessary. These could include stimulating spending through increased asset prices in stocks and real estate, raising the minimum income tax threshold, enhancing tax refunds for individuals, ensuring stable income growth for low- and middle-income groups, and reducing costs in essential services like utilities to alleviate residents' financial pressures. Focusing on income generation, expenditure management, and equitable distribution will empower consumers to spend more, driving consumption growth year-round.
Sanya Singh for TROIB News
During the 2025 Spring Festival, marking the Year of the Snake, various regions across China implemented measures aimed at stimulating consumer spending. This included issuing consumption vouchers in sectors such as culture and tourism, retail and dining, and automotive and home appliances to reenergize the holiday economy.
Consumption has emerged as the leading force behind China's economic growth, making its enhancement crucial for stability. In 2024, final consumption expenditure contributed 44.5 percent to economic growth, significantly overshadowing the impacts of investment and net exports. The Central Economic Work Conference has called for robust initiatives to enhance consumption and expand domestic demand across all areas in 2025. As such, it is essential to boost consumption, create diverse consumption scenarios, and thoroughly explore the spending potential of residents to foster economic development and stabilize growth.
Holiday consumption plays a critical role, with active spending during the Spring Festival fueling consumption trends for the entire year. Typically, holiday spending comprises about 10 percent of total annual retail sales. Research indicates that fast-moving consumer goods sold during the 2024 Spring Festival represented 20 percent of the annual total. Items such as automobiles and home appliances are commonly purchased during this festive period. The Ministry of Commerce reported that national online retail sales during the 2025 Chinese New Year Shopping Festival exceeded 700 billion yuan.
Meituan's data showed a 305 percent increase in online reservations for Chinese New Year's Eve dinners made two weeks in advance compared to the previous year. Additionally, the China Film Administration reported that box office revenue on the first day of the Spring Festival reached 1.805 billion yuan, with 35.15 million viewers, setting records for both single-day box office and attendance.
Furthermore, it was projected that the total number of inter-regional trips from January 14, the start of the Spring Festival travel rush, to February 2, would reach 4.8 billion, marking a 7.2 percent increase compared to the same period in 2024. These figures suggest a promising onset for consumption during the Spring Festival, which bodes well for reversing recent sluggish spending trends, rebuilding consumer confidence, and stimulating overall consumption growth in 2025.
New consumer products, models, and scenarios have emerged, highlighting the need for innovative consumption dynamics to fulfill domestic demand. This year has seen a surge in unique products and purchasing models, fostering new quality consumption forces. E-commerce data revealed remarkable growth in the sales of products like Thai durians, Yunnan blueberries, and Chilean cherries during the Spring Festival Shopping Festival, with increases of 220.99 percent, 75.32 percent, and 63.96 percent, respectively.
Moreover, the extended eight-day Spring Festival, the first since its designation as a UNESCO Intangible Cultural Heritage of Humanity, saw a rise in consumer interest in intangible cultural heritage experiences. Searches for related experiences and handicrafts rose substantially, with inquiries increasing by 168 percent and 321 percent respectively, while flight bookings to heritage destinations doubled.
Spending on pets also gained prominence in the consumption landscape during the Spring Festival. Many pet owners purchased new clothes, toys, and special "Chinese New Year's Eve dinners" for their pets. The "2025 Taobao Report on Chinese New Year's Eve Dinners for Pets" noted that searches for pet-specific dinners skyrocketed by over 150 percent, with transaction volumes climbing nearly 60 percent year-on-year.
Emerging consumption models, including the "goods economy" related to anime, the "snow economy" focused on winter sports, the "silver economy" aimed at the elderly, and the "debut economy" characterized by innovation in products and business models, are also gaining traction. This reflects untapped consumption potential among Chinese residents, highlighting the demand for personalized and niche products.
Government efforts to encourage consumption have been robust, with action plans set to unlock the Year of the Snake's consumption potential. The strong start to the consumption market is closely linked to these initiatives, which have significantly boosted residents' spending. Starting January 20, consumers purchasing certain digital items benefited from a 15 percent discount on the final price, capped at 500 yuan per item.
In various regions, local governments have introduced their strategies to further stimulate the economy. For instance, Beijing launched the "Bring Beijing's Time-honored Brands Home" initiative. On January 7, the "National Time-honoured Brands Carnival," also known as "Celebrating Chinese New Year in Golden Wangfujing Street," began along Wangfujing Pedestrian Street, showcasing over 100 consumer events designed to create an enjoyable shopping environment.
In Guangzhou, themed festivities around "Celebrating the Chinese New Year in Guangzhou, Appreciating Flowers in the Flower City" included more than 2,000 cultural, tourism, and sporting activities, immersing participants in the festive spirit. Such government efforts have contributed to the strong consumer market start in 2025, significantly bolstering consumption growth for the rest of the year.
Lastly, to sustain this strong onset of consumption throughout the year, further policy measures are necessary. These could include stimulating spending through increased asset prices in stocks and real estate, raising the minimum income tax threshold, enhancing tax refunds for individuals, ensuring stable income growth for low- and middle-income groups, and reducing costs in essential services like utilities to alleviate residents' financial pressures. Focusing on income generation, expenditure management, and equitable distribution will empower consumers to spend more, driving consumption growth year-round.
Sanya Singh for TROIB News
