Shanghai looks to increasing city's consumption

Shanghai will introduce a total of 15 measures this year to further facilitate consumption in the city, which is part of the city's efforts to boost market expectations and confidence, and stabilize economic growth, said Zhu Min, director of Shanghai Municipal Commission of Commerce, at a press conference on Thursday.

In specific, the city will hold consumption promotion activities throughout the year, which will mark the first time that promotions are carried out under such a time span, said Zhu.

Shanghai's 5-5 Shopping Festival, which falls on May 5 every year and will hold its third edition this year, should continue to be one of the major engines to drive up consumption. Another six themed consumption seasons will be held, he added.

The municipal government will guide industry associations to grant for the first time business innovation awards to business entities so that more innovation in the consumer market can be nurtured, meeting consumers' demand for higher quality products, said Zhu.

A total of 1,073 new stores made their national or global debut in Shanghai last year, the largest number among all Chinese cities. This should continue to be the focus of the municipal government to boost consumption this year, said Liu Min, deputy director of Shanghai Municipal Commission of Commerce.

Brands which came up through the internet will be encouraged to reach into offline business circles, tap into department stores and nurture their first brick-and-mortar stores, said Liu.

Shanghai will create 10 waterfront nightlife experience areas and another 30 waterfront nightlife destinations, which will comprise of another major highlight of the city's consumption, she said.

Consumption for automobiles as well as green and smart home appliances will be encouraged by providing subsidies, according to the newly released 15 measures. For green smart home appliances purchases, consumers will be provided with a one-time subsidy of 10 percent of the payment amount, with the ceiling set at 1,000 yuan ($146).

Consumption within communities is another focus. For qualified commercial projects in suburban areas or logistics delivery projects in the rural area, subsidies equal to 50 percent of the investment will be provided. The maximum subsidies comes at 2 million yuan and 3 million yuan respectively.

Meanwhile, the municipal government will issue 40 million yuan of sports consumption coupons this year, while the total value was 23.34 million yuan in 2022. More than 600 designated venues have been additionally added to the list for where these coupons can be used. Shanghai residents can apply for sports consumption coupons through digital tools such as WeChat or Alipay.