Multiple policies support the accelerated release of mid to high end consumption expectations
As a key area for promoting comprehensive consumption, the upgraded market is receiving a new round of policy support. The reporter from Economic Reference Daily learned that the Ministry of Commerce has made the construction of international consumption center cities one of the key points for promoting consumption this year. Recently, it has repeatedly stated that it will increase its support for various regions to promote this work, and will work together with the Ministry of Finance, the General Administration of Customs, the National Development and Reform Commission and other departments to improve relevant support measures. At the same time, local governments are also seizing policy opportunities. Among them, large and medium-sized cities such as Beijing, Shanghai, Nanjing, Hangzhou, and Guangzhou have proposed to accelerate the construction of international consumption center cities and improve the layout of duty-free shops in the city in the new round of consumption promotion plans. Analysis indicates that under the support of multiple policies, the potential of the mid to high end consumer market, which originally had strong demand, is expected to be fully unleashed, igniting the consumption growth engine.
The latest data shows that in the first quarter, China's retail sales of goods increased by 30.4% year-on-year, nearly 10% higher than the same period in 2019. The head of the Consumer Promotion Department of the Ministry of Commerce stated that the consumption of mid to high end goods has grown rapidly, and tax-free sales on Hainan's outlying islands continue to be booming. Sales of some large shopping centers and outlets have increased by more than 15% compared to the same period in 2019.
Regarding the consumption potential of upgrading the market, Guan Lixin, Deputy Director of the Circulation and Consumption Research Institute of the Research Institute of the Ministry of Commerce, stated in an interview with the Economic Reference Daily that with the steady recovery of the domestic economy, the income of urban and rural residents has achieved rapid growth. In the short term, the consumption growth of upgraded goods such as imported cosmetics and communication equipment is strong; In the long run, the demand for high-quality, branded, and internationalized goods and services will accelerate as the middle-income group gradually expands.
Meeting the demand for upgrading consumption is the next important focus. The outline of the 14th Five Year Plan clearly states the need to comprehensively promote consumption and proposes the cultivation and construction of international consumption center cities, as well as the creation of a number of regional consumption centers; Improve the policy of duty-free shops in the city, plan and construct a number of Chinese characteristic duty-free shops in the city, and other specific measures. The analysis points out that this is a relay to the "13th Five Year Plan" outline of "optimizing the layout of duty-free shops and cultivating and developing international consumption centers". With the improvement of policies, the potential of China's upgraded market is expected to be accelerated.
At the ministerial level, optimizing the consumption upgrade platform will also be the focus of promoting consumption, improving quality, and expanding capacity. At the beginning of this year, the Ministry of Commerce proposed to optimize the consumption upgrade platform. In terms of specific measures, Zhu Xiaoliang, Director of the Consumer Promotion Department of the Ministry of Commerce, stated that in 2021, efforts will be made to accelerate the cultivation and construction of international consumption center cities, promote the high-quality transformation and upgrading of pedestrian streets, create a medium to high-end consumption carrier, and make urban life more quality.
Recently, Qian Keming, Deputy Minister of Commerce, stated that efforts should be made to promote the improvement and expansion of consumption. In his view, cultivating and building international consumption center cities will be conducive to creating an environment for consumption upgrading, and play a greater role in driving consumption for regional and even national economic growth.
In addition, developing tax-free consumption has also become an important driving force. Zhu Xiaoliang introduced that there is a clear trend of overseas consumption returning to China. In 2020, the import of consumer goods increased by 8.2% compared to the previous year, sales of Hainan duty-free shops increased by 1.27 times, and sales of some mid to high end brands increased by more than 30%.
More positive news is still being released. The Economic Reference News learned from the General Administration of Customs that this year, the offshore duty-free supervision mode will continue to be optimized, the level of supervision services will be continuously improved, the release effect of offshore duty-free shopping policies will be supported, the construction of Hainan International Tourism Consumption Center will be promoted, and the dividends of Hainan offshore duty-free policies will be further released.
At the recent press conference of the State Council Information Office, Vice Minister of Finance Zou Jiayi stated that the next step will be to accelerate the implementation of the "zero tariff" policy for imported goods consumed by residents in Hainan Island. Cong Liang, Deputy Director of the National Development and Reform Commission, stated that they are currently studying the tax exemption policy for overseas exhibits at national level exhibitions.
On April 25th, Zhu Xiaoliang further clarified that currently, the Ministry of Finance, together with the Ministry of Commerce, the General Administration of Customs, the State Administration of Taxation and other departments, is actively promoting the formulation of tax-free policies for overseas exhibits during the first China International Consumer Goods Expo. Relevant tax preferential policies will be introduced soon, and imported exhibits that meet certain conditions will enjoy tax-free benefits during the exhibition period.
Under policy support, local governments have begun to deploy intensively and have introduced a new round of consumption promotion plans. A reporter from Economic Reference Daily noticed that in recent times, many cities such as Shanghai, Beijing, Nanjing, Hangzhou, and Guangzhou have been releasing plans, with the focus on building international consumer center cities and the development of duty-free shops in the city becoming a hot topic.
4月23日，南京召开建设国际消费中心城市现场推进会，发布南京市创建国际消费中心城市三年行动计划，提出到2023年，南京全市社会消费品零售总额达到8900亿元，到2025年，全市社零总额突破万亿元。
此前，杭州于3月24日发布《建设国际消费中心城市三年行动计划（2021-2023年）》，从打造多层次消费商圈、优化高端消费供给、壮大新型消费模式等八个方面提出24条举措，包括提高萧山国际机场等口岸免税店运营水平，鼓励免税品运营商在杭选址、布局市内免税店，支持杭州企业争取免税经营执照等。
力争到2023年，全市社会消费品零售总额突破8000亿元，年均增长8%以上；网络零售总额突破10000亿元，年均增长10%以上。
南京近日发布的“十四五”规划纲要提出，深入实施扩大内需战略，初步建成国际消费中心城市。提升消费环境国际化水平，用好144小时过境免签政策，完善出口产品转内销支持体系，积极争取建设大型免税购物中心和进口商品展示交易中心，提高国际消费的便利度。
另外，广州、北京、上海等多地也将建设国际消费中心城市、推动市内免税店新政落地、优化布局免税店、持续吸引国内外知名品牌首店首发等作为今年乃至“十四五”期间的促消费施工重点。
关利欣表示，各大中城市新一轮促消费政策围绕聚集优质消费资源、建设新型消费商圈、推动消费融合创新、打造消费时尚风向标、加强消费环境建设、完善消费促进机制等重点任务出台具体举措，有利于扩大消费规模、提升消费品质、引领消费趋势、吸引消费回流、促进消费升级，推动扩大内需战略落实，促进形成强大国内市场，构建新发展格局。
Information source: Economic Reference Report
