Shanghai releases 7 measures to promote debut economy

In a document issued on May 15, the Shanghai Municipal Commission of Commerce, along with six other local departments, outlined seven measures to further promote the high-quality development of the debut economy in the city.

The debut economy refers to the economic benefits generated by the opening of first stores, the launch of new products, or debut shows and inaugural exhibitions in a region by both domestic and international brands.

The document, titled Several Measures on Further Promoting the High-Quality Development of Debut Economy in Shanghai, came into effect on May 17, 2024, and will remain in effect until April 30, 2029.

Here are the seven measures:

1. First in Shanghai 

Each year, from March to May, Shanghai hosts its "First in Shanghai" global product debut season. This event encourages domestic and international brands to launch new products, stage debut shows and exhibitions, or open their first stores in Shanghai.

2. First stores

In line with the "Evaluation Guidelines for Shanghai's Debut Economy," support is provided for leading domestic and international brands to establish their first stores in Shanghai. 

A one-time reward of 1 million yuan is granted for brands opening their first Asian stores or above in Shanghai. This reward increases to 1.2 million yuan if such first stores are established during the "First in Shanghai" promotion period. 

Districts with the necessary financial capacity are encouraged to offer additional financial support for brands opening their first Chinese stores or above in Shanghai, as well as for those that sign agreements of two years or more with these first stores.

3. New products launches, debut shows and inaugural exhibitions

Domestic and international brands are encouraged to debut their new products, host inaugural shows and organize their first exhibitions in Shanghai. 

Organizers of these debut activities are eligible for a subsidy of up to 1 million yuan. This subsidy covers 30 percent of actual expenses, including venue rental, setup, and promotion, among others.

The subsidy allocation is contingent upon the evaluation of several factors, including the significance of the new products, the number of participants, the event's impact, and media coverage.

For activities that hold international influence and lead the market during the "First in Shanghai" promotion period, the subsidy increases to up to 1.2 million yuan, covering 30 percent of actual expenses.

4. Professional services 

Agencies offering professional services in the debut economy sector are encouraged to pioneer the development of China's first evaluation indicators, conduct global promotions, and organize industry summits. 

Organizers of such activities are eligible for financial support of up to 1 million yuan, covering 30 percent of actual expenses. 

Media coverage and other promotional initiatives are provided for debut activities that lead the industry and market, enhancing the influence and reach of the debut economy.

5. Approval procedures

The procedures for approving and documenting new product launches have been streamlined.

For large-scale new product launches with over 1,000 attendees, a single venue only needs approval once to host various similar activities. 

For smaller-scale events with fewer than 1,000 attendees, a single venue only needs to file for record once to host various similar events, following a model established for larger events.

6. Customs clearance convenience

Customs clearance procedures have been streamlined for imported goods intended for debut activities.

A "corporate service package" has been established to assist companies in navigating customs procedures more effectively. 

Customs authorities will promote the acceptance of inspection results for imported goods during customs clearance for new products such as clothing.

Additionally, customs convenience will be provided for imported consumer goods used for sample displays and new product launches that are not intended for sale in the domestic market. 

Encouragement is also given for the display and transaction of new products in bonded areas, facilitating the domestic sale of imported new products.

7. District support measures 

Well-funded districts are encouraged to implement financial support for the debut economy. All districts are urged to establish expedited processes for the debut economy, providing excellent services for enterprises launching high-level first stores and hosting debut events.

Source: WeChat account "Shanghai Fabu"