Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Agricultural Development Bank of China
Economy

Economic Watch: Stay-at-home economy to shine in Lunar New Year holiday

February 02, 2021


Abstract : The blossoming stay-at-home economy is likely to break new ground for growth and market size in China, as people have been encouraged to stay where they are for the annual Spring Festival holiday to stem the spread of the COVID-19 epidemic.

BEIJING, Feb. 1 (Xinhua) -- The blossoming stay-at-home economy is likely to break new ground for growth and market size in China, as people have been encouraged to stay where they are for the annual Spring Festival holiday to stem the spread of the COVID-19 epidemic.

"I've bought a lot of food and snacks online, and will probably spend most of the holiday binge eating and binge-watching TV," said Huang Jingjing, a 29-year-old bank employee who has decided to stay in Beijing instead of returning to her hometown in east China's Jiangsu Province for the upcoming seven-day holiday.

The Spring Festival, or the Chinese Lunar New Year, is an important occasion for family reunions, which falls on Feb. 12 this year.

"It's a pity that I'm not going to celebrate the holiday with my family, but with so many home entertainment options, I don't think I'll be bored or lonely," Huang said.

In China, consumer preferences have been shifting toward e-commerce and online entertainment and education for over a decade. The COVID-19 epidemic, however, has accelerated the trend and proven to be a boon to companies that serve the stay-at-home economy.

Partly fueled by the epidemic, China's online sales surged by 14.8 percent year on year to 9.8 trillion yuan (about 1.52 trillion U.S. dollars) in 2020, making China the world's largest online retail market for an eighth straight year.

Ahead of the Lunar New Year holiday that normally sparks the biggest mass movement of humans on the planet, Chinese authorities advised migrant workers and residents to stay put, pledged to guarantee sufficient supplies of daily necessities and asked e-commerce platforms and logistics companies to ensure normal operation during the period.

"We expect to see demand for at-home consumption continue to explode this year, especially during the Lunar New Year holiday," said Wang Nian, an associate fellow with the Institute of Market Economy under the Development Research Center of the State Council.

Online food delivery platforms, including Meituan and Ele.me, are working with popular catering brands to launch prepackaged or semi-packaged meals for the holiday, so that younger generations will be able to celebrate the traditional festival with a feast that is easy to make.

Merchants are also targeting different groups of people by providing customized takeaway meal kits, such as single-person dinner packages and family reunion dinner packages for six to 10 persons, in a bid to woo more consumers.

"The boom in online consumption will make up for the reduction in offline consumption," Wang said.

Consumer spending during the Lunar New Year holiday is likely to be less than normal years, due to measures to reduce people's movement. However, given the low comparison base in 2020, China will still report a year-on-year consumption growth during the holiday, Wang said. Enditem

Scan the QR code and push it to your mobile phone

Keyword: stay-at-home economy Lunar New Year

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Identifying code Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial