The great development of ＂new consumption＂ is just the right time

Recently, the General Office of the State Council issued the Opinions on Accelerating the Development of New Consumption with New Business Forms and New Models (hereinafter referred to as the Opinions), which is an important measure to comprehensively implement the Party Central Committee and the State Council’s work of "six guarantees", implement the task of "six guarantees", implement the strategy of expanding domestic demand, and accelerate the expansion and upgrading of new consumption.

First, lead new consumption with new formats and new models

Since the beginning of this year, the epidemic in COVID-19 has accelerated the online process of traditional offline consumption, highlighting the important role of new formats and new models in ensuring the daily needs of residents, promoting the recovery of domestic consumption and promoting economic stabilization and recovery. Summarizing and popularizing these new formats and models will help to further stimulate the vitality of consumption, promote the deep integration and organic integration of online and offline, and accelerate the development of new consumption.

(1) Accelerate the development of new retail and innovate the service model.

The epidemic situation has seriously hindered on-site consumption, and forced the circulation of agricultural products to create new modes such as "fresh e-commerce+cold chain home delivery", "non-contact distribution" and "non-contact service" and become an important force of new consumption. The Opinions emphasize "innovative non-contact consumption mode", which is not only the recognition and encouragement of the new format and new mode, but also sets a new standard for the online and offline integrated development of retail industry under the condition of normalized epidemic prevention and control.

(2) The integration and development of culture, travel and entertainment will reshape the consumption experience.

The new scientific and technological revolution triggered by information technology promotes the process of integration and transformation of culture, tourism, entertainment and other industries. The epidemic situation has accelerated the integration of culture, travel and entertainment, and shaped new models such as "live e-commerce" and "social marketing". The Opinions specifically emphasized the new modes of online entertainment, smart tourism and smart broadcasting, such as "online cultural and entertainment formats" and "live e-commerce".

(3) Social services are promoted in an orderly manner to ensure stable operation.

The digitalization process in the field of social services has also developed rapidly. Especially during the epidemic period, offline classes, education and training all turned to online mode, and medical consultation changed from on-site diagnosis and treatment to remote consultation, which ensured the smooth operation of social services.

At present, new consumption not only serves and stimulates the potential demand of consumers, but also becomes an important force to expand domestic demand; More importantly, the development of new consumption will also transmit the trend of online and offline organic integration and potential consumer demand to the upstream of the industrial chain, which will drive brand consumption and quality consumption, lead personalized customization and flexible production, and promote the coordinated development of large, medium and small enterprises and the integrated development of upstream and downstream chains, becoming the foundation and forerunner of high-quality development.

Second, accelerate the iterative upgrading of new formats and new models

In the long run, with the acceleration of the digitalization process and the accelerated integration of online and offline, the new format and new model will be rapidly iterated and continuously upgraded, and gradually form version 2.0 and version 3.0 that are more suitable for users’ needs, enhance user experience and facilitate user service. The Opinions emphasize "updating application scenarios", "innovating non-contact consumption patterns" and "exploring new retail formats", which is obviously a grasp of the law and a judgment on the trend, and is an important guide for future formats and models.

From the development trend of the new format and new mode, it has the following characteristics:

(1) Application scenarios are incubators for new formats and new models.

The "Opinions" put forward "cultivating new high-tech video formats with higher technology formats, updated application scenarios and more beautiful audio-visual experience under the condition of 5G", which is a prediction of the era of "live broadcast+". With the wide application of 5G technology, it also ushered in the era of real-time dissemination of video and live broadcast information, making it possible to broadcast and sell immediately, which will certainly promote the emergence of new application scenarios and bring about iterative upgrading of new formats and new modes. Take the WeChat applet as an example. In 2019, the transaction scale reached 800 billion yuan, a year-on-year increase of 160%. Its rapid growth benefits from the continuous updating of application scenarios, including the upgrade of WeChat search, the new live broadcast and video number. It is through the continuous expansion of application scenarios that new video formats with better audio-visual experience are brought to consumers.

(2) Intelligent wisdom is the focus of the new format and new model.

The "Opinions" proposes to "explore the development of new retail formats such as smart supermarkets, smart stores and smart restaurants". Intelligentization and intellectualization is an important trend in the process of digitalization, and it is also the focus of innovation of formats and modes at present and in the future, and it is an important power source of new consumption. From the consumer’s point of view, the new format and new mode mean that consumers have formed a recognizable, distinguishable and relatively stable business form, and it also means that its interface entrance, store configuration and marketing mix are in line with consumption habits and decision-making links. Take Hungry, Meituan as an example. In the early stage of development, we started from the catering industry and cultivated take-out as the third way of eating after cooking and eating in class. Nowadays, with the help of the bonus of traffic portal and big data research, the business has gradually expanded to the categories of convenience, fresh fruits and vegetables, green flowers, medical health, etc., showing the tendency of "sending everything".

(3) Quality brand is the vane of new format and new mode.

"Opinions" emphasizes "organizing various forms of online promotion activities to promote brand consumption and quality consumption". At present, new consumption based on online and offline organic integration and deep integration is led by young customers. In recent years, interest products such as blind box and IP model play, skin care, make-up, limited edition clothing, shoes and other products that pay attention to face value have all been sought after by young people. According to the data of Ali Research Institute, the contribution of new categories of consumer brands in China reached 44.8% in 2019, an increase of 15.2 percentage points over 2018. The new products bring double growth in China brand sales and new customers.

Third, promote domestic and international double circulation with new consumption

The "Opinions" pointed out that "enterprises are encouraged to expand the international market by relying on new consumption". New consumption is an important cornerstone of the domestic cycle and an important starting point for promoting the international cycle.

(A) the new consumer guide supply and demand adaptation.

From the perspective of domestic circulation, a series of new formats and new models formed by the integration of online and offline development are important achievements of the consumption experience and matching experiment of supply and demand, and brand consumption and quality consumption are the important focus of the reform of the supply system led by new consumption. The development of new consumption has continuously improved the adaptability between supply and demand of China’s economy. In the long run, the accelerated layout of new infrastructure, such as 5G, artificial intelligence and Internet of Things, and the development of data centers will surely create more application scenarios for accurate and intelligent matching between the supply side and the demand side.

(2) New consumption promotes international circulation.

New consumption is not only an important means to promote the high-quality development of domestic big cycle, but also an important medium to realize the mutual promotion of domestic and international double cycles. The Opinions emphasize "fully relying on new consumption to drive the traditional commodity market to expand foreign trade", and its core is to promote the "going out" of e-commerce and digital services, and promote the "going out" of brand products and quality products.

At present and in the future, it is an important period for the great development of new consumption. The new format and new model are continuously updated and iterated, the quality brand consumption is innovated and developed, and the application scenarios and intelligent wisdom promote each other, leading the high-quality development of the domestic big cycle and promoting the mutual promotion of the domestic and international double cycles. (China Renmin University Business School Wang Qiang)