2025年中国商业十大热点展望报告 Ten Highlights of Chinas Commercial Sector 2025-香港科技大学

Whattheexpertssay

TenHighlightsof

China’sCommercialSector2025

January2025

HKUSTLI&FUNG

SUPPLYCHAININSTITUTE

Contents

01

Preface

02

AbouttheOrganizations

03

ExpertPanelMembers

04

ImplicationsforBusinessesandTipsforEnterprises

08

TenHighlightsfor2025

Preface

TheHKUSTLi&FungSupplyChainInstituteandtheExpertCommitteeofthe

ChinaGeneralChamberofCommercearepleasedtopresentthe22ndeditionofourannualTenHighlightsofChina’sCommercialSectorreport.

In2024,China’scommercialsectorcontinuedtoevolve,drivenbyacombinationofpolicysupportandshiftingconsumerbehaviours.Thisyearhasseen

significantdevelopmentsindigitaltransformation,serviceconsumption,andenvironmentalsustainabilityinthecommercialsector,reflectingthedynamicnatureofthemarketandtheresilienceofbusinessesoperatingwithinit.

Serviceconsumptionhasremainedakeygrowtharea,withconsumers

increasinglyseekingdiverseandhigh-qualityexperiences.Innovationsin

servicemodels,suchastheintegrationofcommerce,culture,tourism,sports,

andhealth,haveplayedacrucialroleinthisgrowth.Thegovernment’s

emphasisonbuildingahigh-qualityserviceindustryhasfurthersupportedthesetrends,creatingnewopportunitiesforbusinessestothrive.

Thecompetitivelandscapehasintensified,withbusinessesfacingshrinking

profitmarginsandhighturnoverrates.However,companiesthatfocuson

costcontrol,efficiencyimprovements,andinnovativebusinessmodelshave

managedtonavigatethesechallengessuccessfully.Theimportanceofagile

andresilientsupplychainshasalsobecomeevident,particularlyforenterprisesexpandingintooverseasmarkets.Forcompaniesthatgoglobal,effective

localizationstrategiesandstrategicpartnershipsarekeytosuccessinregionslikeSoutheastAsia,theMiddleEast,andLatinAmerica.

Withinputfrommorethan160top-tiermainlandexperts,TenHighlightsonceagainidentifiestoptrendsofthepastyearandanticipatesthedevelopmentsthatwillshapeChina’scommerciallandscapein2025.

In2025,China’scommercialsectorisexpectedtocontinuegrowing,driven

byincreaseddomesticconsumptionandtechnologicaladvancements.The

government’sfocusoncreatingaunifiednationalmarketwillfurtherstreamlinethetradesystemandenhancemarketcompetitiveness.Theservicesector,

particularlye-commerceanddigitalservices,willcontinuetoexpand,fuelled

byrisingconsumerexpectationsforconvenienceandexperience.Additionally,sustainabilitywillplayacrucialrole,asconsumersincreasinglydemandeco-friendlyproducts.Theemergingruralmarketswillpresentnewopportunitiesforbusinesses,whilefiercecompetitionwillnecessitateinnovativestrategiesandeffectivelocalizationtomeetdiverseconsumerneeds.

TenHighlightsisavaluableresourceforglobalbrandsandretailers,andfirmsandindividualsseekingtobetterunderstandthelatestcommercialtrends,

issues,andopportunitiesinChina.WewishtothankallpanelmembersontheExpertCommitteeforsharingtheirimportantinsights,andourcolleaguesatHKUSTLi&FungSupplyChainInstitutefortheirmanycontributions.

HelenChin

HKUSTLi&FungSupplyChainInstitute

1

2

AbouttheOrganizations

TheExpertCommitteeoftheChinaGeneralChamberofCommerce

TheExpertCommitteeoftheChinaGeneralChamberofCommerce(ECCGCC),a

sub-divisionoftheCGCC,comprises

over160prominentexpertsfromvarious

governmentdepartments,researchinstitutesanduniversities,leadingcorporations,

professionalassociations,consultancyfirmsandnewspaperoffices,whichincludethe

MinistryofCommerce,theChineseAcademyofSocialSciences,ChinaChainStoreand

FranchiseAssociationandtheRenmin

UniversityofChina,etc.TheECCGCCservesasaplatformfortheexpertstoexchange

ideasonthedevelopmentofcommercialenterprisesandthedistributionsector.

TheChinaGeneralChamberofCommerce

Foundedin1994,theChinaGeneral

ChamberofCommerce(CGCC)hasaround80,000members,encompassingenterprisesfromretail,distribution,servicesandtourismsectors,localcommercialchambers,nationalprofessionalassociations,intermediary

organizationsandindividuals.CommissionedbytheChineseGovernment,theCGCC

consistsof14businesscommittees.Italsosupervises40nationalassociationsand33newspapersandmagazinespublishedbothinsideandoutsideChina.

HKUSTLi&FungSupplyChainInstitute

TheHKUSTLi&FungSupplyChainInstitute(Institute)acceleratesthecreation,global

dissemination,andpracticalapplicationofnewknowledgeformanagingtomorrow’ssupplychains.

TheInstituteseekstodeveloplocal

andinternationaltalentinsupplychain

managementthroughteaching,professionaldevelopment,andexchangesatspecialist

conferences.Itbringstogetherleadersin

industry,academia,andthepublicsectorinanewcollaborationforresearch,executive

educationandpracticefocusedoninnovationinbusinessmodels,sustainablesupply

chaindesign,processre-engineering,andtherapidadoptionofnewtechnologies.

Theseoutcomesarevitalinaddressing

theneedforvisionary,innovativesupply

chainmanagementinthefaceofrapid

technologicaladvancements,disruptionfromgeopoliticaltensions,andconcernsrelatedtosustainabilityandclimate.

JointlyestablishedbyHKUSTandsupply

chainindustryleaderLi&Fung,theInstitutebringstogetherresearchexcellence

andindustryexpertiseinsupplychain

managementtodrivereal-worldimpact

acrosstheGreaterBayArea,GreaterChina,Asia,andglobally,whilecontributingtoHongKong’sdevelopmentasamultinationalsupplychainmanagementcenter.

3

ExpertPanelMembers

CaoLisheng

ViceChairman;Secretary,DeputyDirector,SeniorEconomist

ChinaGeneralChamberofCommerce;ChinaNationalCommercialInformationCentre

ChanSoChing

Head

HKUSTLi&FungSupplyChainInstitute

ChangKaMun

ExecutiveDirector;

Member

HKUSTLi&FungSupplyChainInstitute;ChinesePeople’sPoliticalConsultative

Conference(1998–2018)

ChenLiping

Professor

CapitalUniversityofEconomicsandBusiness

DingJunfa

FormerExecutiveViceChairman,ResearchFellow

ChinaFederationofLogistics&Purchasing

FuLongcheng

ViceChairman;

Director,SeniorEconomist

ChinaGeneralChamberofCommerce;ExpertCommitteeoftheChinaGeneralChamberofCommerce

FuYuehong

President

BeijingChamberofCommerce

GanWei

President

ChinaGeneralChamberofCommerce;CommercialLogisticsandSupplyChainBranch

GuoXinmei

Professor

FacultyofEconomics,BeijingTechnologyandBusinessUniversity

HongTao

Professor

BeijingTechnologyandBusinessUniversity

HuBin

President,ChiefEditor

ChinaBusinessHerald

HuangHai

FormerMinisterAssistant,Researcher

MinistryofCommerce

LaiYang

Researcher;President

BeijingCollegeofFinanceandCommerce;

BeijingJingshangCirculationStrategyResearchInstitute

LiGang

Director

DepartmentofCirculationIndustryDevelopment,MinistryofCommerce

LiTao

DeputyDirector;

GroupChiefRepresentative–NorthernChina

ExpertCommitteeoftheChinaGeneralChamberofCommerce;

Li&Fung(Development)ChinaLtd.

LuanBo

DeputySecretaryGeneral,OfficeDirector

ChinaGeneralChamberofCommerce

MaZengjun

President

ChinaAgricultureWholesaleMarketAssociation

PengJianzhen

President

ChinaChain-Store&FranchiseAssociation

RenXingzhou

FormerDirector,ResearchFellow

InstituteforMarketEconomy,

DevelopmentResearchCenteroftheStateCouncil

SongYuanyuan

DeputyDirectoroftheGeneralOffice

ChinaGeneralChamberofCommerce

SongZe

ResearchFellow

NationalAcademyofEconomicStrategy,ChineseAcademyofSocialSciences

TangShaojuan

President,ChiefLecturer

IBMGCommercialThinkTank

WangDongtang

Director

DepartmentofTradeinServicesand

BusinessServices,MinistryofCommerce

WangWei

FormerDirector,ResearchFellow

InstituteforMarketEconomy,

DevelopmentResearchCenteroftheStateCouncil

WangXiaodong

Professor

BusinessSchool,RenminUniversityofChina

WuYing

ViceChairman

ChinaCuisineAssociation

XieLijuan

Professor

BusinessSchool,RenminUniversityofChina

XuXingfeng

Director

DepartmentofMarketOperationandConsumptionPromotion,MinistryofCommerce

YangJinlong

DeputySecretaryGeneral,DirectoroftheSecretariat

ExpertCommitteeoftheChinaGeneralChamberofCommerce

YangQingsong

SecretaryGeneral

ChinaCommerceAssociationforGeneralMerchandise

YaoLiming

FormerDirector,ResearchFellow

ChinaCommercialGroupCommercialEconomicResearchCenter

YiShaohua

Director,ResearchFellow

InstituteofDistributionandConsumption,NationalAcademyofEconomicStrategy,ChineseAcademyofSocialSciences

YuDi

DeputyDirector,SecretaryGeneral

ExpertCommitteeoftheChinaGeneralChamberofCommerce

ZhangHao

Researcher;DeputyDirector

NationalAcademyofEconomicStrategy,ChineseAcademyofSocialSciences;

EditorialDepartment,FinanceandTradeEconomics

ZhouQiang

Director

DepartmentofMarketSystem

Development,MinistryofCommerce

4

ImplicationsforBusinessesandTipsforEnterprises

In2024,China’scommercialsectordemonstratedremarkableresilienceandadaptability,drivenby

acombinationofsupportivegovernmentpoliciesandevolvingconsumerbehaviours.Theyearsaw

significantprogressindigitaltransformation,serviceconsumption,andenvironmentalsustainabilityinthecommercialsector,reflectingthedynamicnatureofthemarket.Governmentinitiativesaimedatboostingdomesticconsumptionandstabilizingtherealestatemarketplayedacrucialroleinfosteringathriving

businessenvironment,despitechallengessuchaslowconsumerconfidenceandeconomicuncertainties.

SeveralkeysectorscontributedtothegrowthofChina’scommercialsectorin2024.Serviceconsumptioncontinuedtoexpand,withinnovationsinservicemodelsintegratingcommerce,culture,tourism,sports,andhealth.E-commerceplatformsledthewayintransformingshoppingexperiencesthroughlivestreamshopping,mobilepayments,andblockchaintechnology,whileenhancingsupplychainefficiencyand

transparency.Additionally,theriseofcounty-levelmarketsandtheincreasingdemandforgreenandhealthyproductshighlightednewopportunitiesforbusinessestotapintoemergingconsumertrends.

Lookingaheadto2025,China’scommercialsectorispoisedforcontinuedgrowth.Keytrendssuchasincreasingdiscretionaryspending,risingruralconsumption,therapidexpansionofthesilvereconomy,andgrowingdemandforenvironmentallyfriendlyproductsareexpectedtodrivetheconsumermarket.

Governmentpoliciesaimedatbolsteringpeople’sincomesandconsumptionwillfurthersupportthis

growth,benefitingbothurbanandruralresidents.Businesseswillalsointensifytheireffortsinareaslikeonline-offlineintegrationandcross-bordere-commercetocapitalizeontheevolvingeconomicandtradelandscape,contributingtoavibrantmarketintheyearahead.

Policysupportfordomesticconsumption

China’sgovernmentiscommittedtocreatingaunifiednationalmarket,aimedat

streamliningandintegratingthedomesticandforeigntradesystemsandreducingregionalbarriers.Thisinitiativeisnotjustapolicydirectivebutastrategicmove

toenhancemarketefficiencyandfosteracompetitivebusinessenvironment.

(Highlight1)

Thegovernmenthasemphasizedexpandingdomesticdemandasaprimary

driverofeconomicgrowth.Thisfocusisevidentinvariousinitiativesaimedat

empoweringconsumers,suchasstabilizingtherealestatemarket,boostingcapitalmarkets,andinvestmentsinbothphysicalanddigitalinfrastructuretofacilitate

easieraccesstogoodsandservices.Akeycomponentofthispolicyisthe

consumergoodstrade-inprogramme,whichprovidessubsidiesforconsumerstoreplacetheiroldappliancesfornewones.Thisinitiativehasstimulateddemandintherelevantretailsectorsandboostedsalesformanufacturers.(Highlight2)

Ourtake:Foreignenterprisesshouldaligntheirstrategieswiththesenational

policies.Thiscanbeachievedbyfocusingonlocalmarketneedsandleveraginggovernmentincentives.Forexample,participatingintrade-inprogrammescan

provideacompetitiveedge,allowingforeignbrandstotapintothegrowing

consumerbaseeagerfornewproducts.Additionally,understandingregionalmarketdynamicsiscrucial.Differentprovincesmayhavevaryingconsumerbehavioursandpreferences;thus,localizedmarketingstrategieswillenhancebrandresonance.

5

Growthinserviceconsumption

TheservicesectorinChinahasbecomearapidlygrowingandhigh-potential

area.Innovationsinserviceconsumptionmodels–suchasintegratingcommerce,culture,tourism,sportsandhealth–aredrivingthisgrowth.(Highlights2&8)

The20thPartyCongressreportandtheStateCouncil’sOpinionsonPromoting

theHigh-QualityDevelopmentofServiceConsumptionunderscorethenecessity

ofbuildingahigh-quality,efficientserviceindustry.Thisincludespromotingnew

serviceconsumptionmodelslikethe‘nighteconomy’,whichencouragesbusinessestocatertoconsumersduringeveninghours,andculturalconsumption,which

centresaroundregionalcultureandculturalcelebrations.(Highlights2,3,5&8)

Forexample,citieslikeShanghaiandBeijinghaveexperiencedasurgeinnight

marketsandculturalactivities,offeringavarietyoffood,entertainmentandculturalproductsthatattractsbothlocalsandtourists.Thisshiftinconsumptionpatterns

presentsopportunitiesforforeignbusinessestoinnovatetheirserviceofferings.

Ourtake:ForeignenterprisesshouldinnovatetheirserviceofferingstocatertotheevolvingpreferencesofChineseconsumers.Integratingdigitalandexperiential

elementsintoservices–suchasvirtualreality(VR)experiences–cansignificantlyenhancecustomerengagement.Brandsthatsuccessfullycreateunique,

memorableexperiencesarelikelytofosterstrongerbrandloyaltyandrepeatbusiness.

Accelerateddigitaltransformation

DigitaltechnologyiscrucialforpromotingserviceconsumptioninChina,

particularlyinruralareasthathavetraditionallylaggedbehindurbancentres.

Theintegrationofdigitalservicesintoruralconsumptionchannelsisexpandingconsumerexperiencesandreshapinghowproductsandservicesaredelivered.

(Highlights3&4)

E-commerceplatforms,likePDD,Xiaohongshu,Taobao,andDouyin,areattheforefrontofthistransformation,innovatingshoppingscenariosbyincorporatingsocial,entertainment,health,andsmartelementsintotheshoppingprocess.Forinstance,livestreamshoppinghasbecomeimmenselypopular,allowingbrandstoengagedirectlywithconsumersreal-time,providinganinteractiveshoppingexperience.(Highlights6&8)

Additionally,theutilizationofdigitaltechnologyinlogisticsandtransactionshasalsoenhancedtheefficiencyandtransparencyofthesupplychain.(Highlights8,9&10)

Ourtake:Foreignenterprisesshouldprioritizeinvestmentindigitaltransformationtoenhanceoperationalefficiencyandcustomerengagement.Utilizingadvancedtechnologiessuchasartificialintelligence(AI)forpersonalizedrecommendations,blockchainfortransparentsupplychains,andInternetofThings(IoT)forsmart

inventorymanagementcansignificantlyimproveservicedeliveryandcustomer

satisfaction.Companiesthatembracethesetechnologieswillbebetterpositionedtorespondtoconsumerneedsandmarketchanges.

6

Adaptationamidstintensifiedcompetition

ThecompetitivelandscapeinChinahasbecomeincreasinglyfierce,withhigh

turnoverratesinbothcateringandretailing.Decliningprofitshavepromptedmanysupermarketsandhypermarketstocloseunderperformingstorestocutlosses.

(Highlights5,6&9)

Theclosureofstoresisnotmerelyareactiontomarketpressuresbutastrategicdecisiontominimizelossesandrefocusresources.Forinstance,well-known

supermarketchainslikeWalmartandYonghuiareincreasinglyprioritizingonline

salesanddeliveryservicestoadapttochangingconsumerpreferences.However,thisshiftintensifiescompetitioninthedigitalmarketplace.

Ourtake:Tostaycompetitive,foreignenterprisesmustfocusoncostcontrol

andefficiencyimprovements.Implementinginnovativebusinessmodels–suchassubscriptionservicesorloyaltyprogrammes–canenhancecustomervaluepropositionsandfosterbrandloyalty.Moreover,continuousmarketanalysistoidentifyconsumertrendsandpreferenceswillhelpbusinessesremainagileandresponsivetomarketdemands.

Globalexpansionasagrowingtrend

AsChineseenterprisesseekgrowthbeyondtheirborders,emergingmarketsinSoutheastAsia,theMiddleEast,andLatinAmericahavebecomekeytargetsforglobalexpansion.Theseregionspresentsignificantgrowthopportunitiesduetotheirexpandingconsumerbases,increasingurbanization,andrisingdisposableincomes,whichcollectivelydrivedemandforadiverserangeofproductsand

services.

However,thepathtosuccessinthesemarketsisnotstraightforward.Thesuccessofretailenterprisesabroadhingesoneffectivelocalizationstrategies.Companiesthathavefailedtoadapttolocalregulations,culturalpreferences,andconsumerbehaviourshaveoftenencounterednumerouschallenges.Firmsthatoverlookedcompliancewithlocallaws,suchasimporttariffsandlabourregulations,found

themselvesfacingoperationalhurdlesthatcouldhavebeenmitigatedwithproperresearchandplanning.(Highlight10)

Ourtake:Enterprisesshouldconductthoroughmarketresearchtounderstandtheuniquepreferencesandculturalnuancesoflocalconsumersinoverseasmarkets.Adaptingproductsandservicestomeetthesepreferencesisessentialforsuccess.Additionally,buildingresilientsupplychainsandformingstrategicpartnershipswithlocalbusinessescanenhanceglobalexpansionefforts.Collaboratingwithlocal

influencersandleveragingtheirunderstandingofthemarketcanalsofacilitatesmootherentryintonewregions.

7

Advancementofcounty-levelcommerce

Therapideconomicdevelopmentofcounty-levelareasinChinaisnoteworthy,withasignificantincreaseinthenumberofcountiesachievinganannualGDPexceeding100billionyuan.Thisgrowthreflectsaburgeoningconsumerbaseintheseregions.

Asurbanareasbecomemoresaturated,county-levelmarketspresentfresh

opportunitiesforbusinesses.Ruralconsumersareincreasinglylookingfor

qualityproductsandservices,indicatingashiftinconsumptionpatterns.Thistrendisfurtherenhancedbygovernmentsupportandimprovedinfrastructure,makingthesemarketsevenmoreattractiveforbusinesseslookingtoexpand.

(Highlight4)

Ourtake:Foreignenterprisesshouldexploreopportunitiesincounty-level

marketsbytailoringtheirofferingstomeetlocaldemands.Establishingeffectivelogisticsanddistributionnetworkswillbecrucialforpenetratingthesemarkets.Forinstance,companiescanconsiderpartnershipswithlocalgovernmentanddistributorstoensureefficientdeliveryandstockmanagement,addressingtheuniquechallengesposedbyrurallogistics.

Heightenedfocusontheenvironment

ThegrowingawarenessofenvironmentalissuesamongChineseconsumershasledtoasignificantshifttowardsgreenandhealthyconsumption.Consumers

areincreasinglydemandinghigh-quality,traceable,andpollution-freeproducts,particularlyintheagriculturalsector.(Highlights5&7)

Thistrendisevidentintherisingconsumerpreferencefororganicand

sustainablysourcedproducts.Brandsthatprovidetransparencyintheirsupplychains,suchasdetailedsourcinginformationandeco-friendlypackaging,

arenotonlygainingtractionbutalsoenhancingconsumertrustandloyalty.

(Highlight9)

Ourtake:Toalignwiththistrend,foreignenterprisesshouldprioritize

environmentalsustainabilityintheiroperations.Adoptingeco-friendlypractices–suchasreducingplasticuse,optimizingenergyconsumption,andimplementingwastemanagementstrategies–canenhancebrandreputationandattract

consumerswhovaluesustainability.Furthermore,marketingtheseeffortseffectivelycandifferentiatebrandsinacompetitivemarket.

8

TenHighlightsofChina’sCommercialSector2025

01

Buildingofaunifiednationalmarketanddevelopmentofnewquality

productiveforcesenhanceefficiencyinthecirculationsystem

04

Thecontinuousexpansionandupgradingofcounty-levelcommercehighlightsconsumptionvitality

02

Consumermarketexperiencessteadygrowthdrivenbypolicysupport

05

Cateringsectorprioritizes

valueformoneyandpromotesgreen,healthyconsumption

03

Upgradesinserviceconsumptionwithfurthergrowthonthehorizon

9

06

Retailersrenewfocusonproductsandservicestomeetconsumers’need

08

Digitalconsumptionunlocksnewgrowthfordomesticdemandwhiledigitalculturalconsumptiondriveslifestylechanges

09

Pioneeringcostoptimization

andefficiencyenhancementto

driveexcellenceandhigh-quality

developmentincommerciallogistics

07

Continuedstrongdemandfor

fresh,high-qualityproducedrivesconsumptiongrowth

10

Globalexpansionbecomes

inevitable,withcomplianceandlocalizationbeingkey

Buildingofaunifiednationalmarketanddevelopmentofnewqualityproductiveforcesenhanceefficiencyinthe

circulationsystem

01

10

11

Whattheexpertssay

TheThirdPlenumsetsthedirectionforbuildingaunifiednationalmarket

DuringtheThirdPlenarySessionofthe20thCentralCommitteeoftheCommunistPartyofChinaheldinJuly2024,Chinareiteratedtheneedfor‘buildingaunifiednationalmarket’aspartofitseffortstofosterafairandwell-orderedbusinessenvironmentformarket

players.

Theimperativetoadoptaholisticstrategy

–pushingfortheunificationofmarket

institutionsandrules,impartialandconsistentmarketsupervision,andhigh-standard

interconnectivityofmarketinfrastructure–

wasstressed.TheChinesegovernmentalsoproposedimprovingthecirculationsystem,acceleratingthedevelopmentoftheInternetofThings,andfurtherrefiningtheintegratedframeworkofcirculationrulesandstandardstoreducelogisticscostsacrosssociety.

Theseproposalshavefurtherclarifiedthedirectionandtasksnecessaryforimprovingthecirculationsystemandrelevantrules

andstandards,andforacceleratingtheconstructionofaunifiednationalmarket.

Unificationofinstitutionsandrulesinthecirculationfieldsupportsaunifiednationalmarket

Overthepastyear,significantstrides

havebeenmadetowardstheunification

ofinstitutionsandrulesinthecirculation

field,whichisaprerequisiteforefficientandorderlyconnectionofmarkets.Thisprogresswillfurtherpromotetheformationand

developmentofaunifiednationalmarket.

Forinstance,theGeneralOfficeofthe

StateCouncilissuedSeveralMeasuresforAcceleratingtheIntegratedDevelopmentofDomesticandForeignTradeinDecember

2023,whichaimstoalignrulesandsystemsgoverningdomesticandforeigntrade,

coveringaspectssuchasstandards,

examination,accreditationandsupervision,

aswellastheconnectionofmarketchannelsfordomesticandforeigntrade.Besides,theMinistryofCommerceapprovedfivedomestictradeindustrystandardsinNovember2023,includingtheSpecificationfortheMonitoringIndicatorsofOnlineRetail,andthreemore

industrystandardsinSeptember2024,

includingtheSpecificationforDepartmentStoreMarketing.

Throughtheformulationofindustry

specifications,industryorganizationshave

alsomadecontributionsinthisregard.For

example,theChinaGeneralChamberof

CommerceamendedtheSpecificationfor

CustomerSatisfactionEvaluationforthe

CommercialServiceIndustryandtheTechnicalSpecificationfortheConstructionand

ManagementofShoppingCentresin2024.

12

Newqualityproductiveforcesdrivefurthertransformationandefficiencyimprovementinthecirculationsystem

Newqualityproductiveforces,primarily

drivenbytechnologicalinnovation,will

leadtoanoptimizedallocationoffactorsofproduction.Ononehand,technologicalinnovationraiseslabourproductivity,

therebyimprovingcirculationefficiency.

Forinstance,DingdongMaicaihastested

unmannedvehiclesforgrocerydelivery,

shortening‘last-miledelivery’to‘last-hundred-metredelivery’whilereducingthedelivery

burdenoncouriers.Ontheotherhand,

whencombinedwiththeproductionfactorsofcapitalandinformation,technological

innovationfacilitatesthedigitaltransformationoftraditionalcommerce.Commercial

districtsinSanlituninBeijingandYuGardeninShanghai,whichwidelyadoptsmart

technologiesandhostvarioussmartstores,areprimeexamples.

Technologicalinnovationalsofostersnew

businessformatsandmodelswithinthe

circulationfield.Forexample,thetechnology-poweredhypermarketchainFreshippo

hasmovedawayfromthetraditional

concessionarymodel.Instead,itleveragesaverticallyintegratedsupplychaincentredonconsumerneedsandstrongdigitaloperationcapabilitiestoprovidevalue-for-money

qualitygoodsforconsumers.Thisshifthassignificantlytransformedthehypermarket

industry.Meanwhile,MeituanDeliveryhas

leverageditsdigitalplatformtointegrate

non-foodbusinessesintoitsecosystem,

broadeningitsdeliveryservicesfromfoodtodailynecessities.Thishasnotonlycreatedanewbusinessmodelintheon-demand

deliveryspacebutalsofurtherpromotedonline-offlineintegrationandefficiencyimprovementinthecirculationindustry.

13

Q&As

Q:Whatdoesthebuildingofaunifiednationalmarketmeanforthecirculationsector?

Establishingunifiedmarketinstitutionsandrulesacrossthecountrywillbreakdownregional

barriersandreducetransactioncosts,therebyfacilitatingthemovementoffactorsofproduction(suchaslabourandcapital),aswellasgoodsandservices.Thisshiftisexpectedtoencouragecompetitionandenhanceoverallefficiencyinthecirculationsector.

Fortheconsumermarket,aunifiednationalmarketwillenableasmootherflowofconsumergoodsonabroaderscale.Productsthatwereonceonlyavailabletoalimitedaudiencewillbeableto

circulatenationwide,providingconsumerswithagreaterarrayofchoicesandimprovedoptionsatlowerprices.Furthermore,witharobustandunifiedqualitysysteminplace,thedomesticqualitystandardsofconsumergoodscanbebetteralignedwithinternationalbenchmarks.Allinall,

consumerscananticipateamoree