China's new consumption trends use technology to offer novel experiences

Visitors to the Great Wall in Beijing's Yanqing District now have the option to experience it from the air, one example of a growing trend of new consumption scenarios emerging across China.

Consumers are increasingly drawn to experiences that combine technology and entertainment in novel ways. A similar tour can be found at Xiazhu Lake National Wetland Park in Zhejiang, where visitors can view the wetlands from a helicopter. 

These emerging activities highlight the rise of new consumption scenarios that are reshaping various sectors by introducing emerging modes, services and experiences powered by advanced technologies such as artificial intelligence (AI), blockchain and big data. Central to this shift, these technologies allow businesses to offer highly personalized and interactive experiences that merge the digital and physical worlds.

Technological integration and innovations in consumption

Unique experiences that blend entertainment, technology and lifestyle are increasingly on offer. For instance, visitors to a shopping mall in Beijing can dive into a 16-meter-deep pool, created using 3D printing technology for an immersive underwater experience. As one consumer, Mr Wu, said, "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," said 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."

"For example, with the maturation of technologies such as 3D printing and virtual reality, consumers can participate in the product design process, enabling personalized customization," Bao added.

Experts like Wang Liping, a member of the Chinese People's Political Consultative Conference, highlighted how new technologies are enhancing traditional shopping experiences. A shopping mall in Ningbo has used AI and digital technologies to create an "online-to-offline" (O2O) shopping experience that allows customers to virtually shop across hundreds of stores, complete with immersive features like AR beauty try-ons.

"Traditional retail models are transforming, leveraging technology to offer not just products, but rich, multi-sensory experiences," Wang said.

Key trends and policy support

The shift in consumer preferences toward more conscious and personalized consumption is being driven by several key trends. Green consumption is growing in importance, with 73.8 percent of Chinese consumers prioritizing environmentally friendly products, data from the 2023 China Consumption Trends Report shows.

At the same time, the health and wellness sectors are booming, with China's health industry expected to hit 9 trillion yuan ($1.24 trillion) in 2024, according to the Health Industry Consumption Trend Development Report released by China Consumers Association. 

The rise of China-chic products – goods that blend traditional Chinese cultural elements with modern design – is another prominent feature of new consumption. These products, particularly popular among younger consumers, have become an integral part of the online shopping boom, with 58.3 percent of users purchasing them in the past six months, according to the 53rd Statistical Report on China's Internet Development.

In addition to retail, new consumption also spans sectors like automobiles and electronics, with increasing national support. A circular jointly issued by the National Development and Reform Commission and four other government agencies in June detailed measures on creating new consumption scenarios.

For instance, according to the circular, automobile-related products and services will be enriched in diverse scenarios, including, car races, camping and car modification. The country will also support the consumption of new-generation high-tech electronics, such as smart wearable devices and AI-powered humanoid robots.

Although online shopping is no longer a new phenomenon, the continuous evolution of e-commerce models has fueled growth in consumer spending. By December 2023, China's internet user base reached 1.092 billion, with over 80 percent of those users engaging in online shopping. The same year, online retail sales in China surged to 15.42 trillion yuan ($2.17 trillion).

What is truly transforming the shopping experience, however, are the innovative models and technologies reshaping the digital marketplace. Demand for smart home devices and wearable tech continues to grow, and emerging consumption scenarios like instant retail and telemedicine are expanding rapidly. The China International Electronic Commerce Center has predicted that the instant retail market will grow at a compound annual rate of 25 percent from 2023 to 2030.

Despite the opportunities, experts like Qi Yunlan, a researcher at the Development Research Center of the State Council, has cautioned that challenges remain. "The digital economy has opened vast new spaces for consumer growth, but there are still issues to address, including gaps in infrastructure, inadequate regulatory frameworks and the need to optimize the consumer environment," she explains.

"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 said.