“Real Money” Promotes Consumption and Expands Domestic Demand with Summer Coupons
Since the start of July, regions across the country have taken advantage of the summer consumption season and issued consumer vouchers in various fields, including cultural tourism, automobiles, and daily necessities. These measures aim to promote the consumer market and expand domestic demand. According to statistics, as of July 23, more than a dozen cities, such as Guangzhou, Shenyang, Jilin, and Zhengzhou, have provided “real money” to promote consumption.
Wang Qing, Chief Macro Analyst of Oriental Jincheng, pointed out that in order to expand domestic demand and promote economic recovery in the third quarter, measures such as issuing consumer coupons are necessary to accelerate consumption recovery.
Specifically, Guangzhou issued a total of 30 million yuan worth of cultural and tourism coupons during this summer vacation. Jilin City launched the “Tesco Jiangcheng Special Car Buying Festival,” offering car coupon promotions worth 920,000 yuan through the mobile QuickPass platform. From July 21st to July 30th, Zhengzhou City launched the fourth “Drunk Beauty·Night Zhengzhou” consumption season, distributing catering coupons.
During the issuance of summer consumer coupons, several characteristics emerged. First, the coupons reflect policy orientation, with more powerful discounts on green and energy-saving appliances and new energy vehicles. Second, they focus on emerging consumption formats and aim to create new consumption scenarios. Third, coupons are mainly distributed through various social apps, small programs, e-commerce platforms, and online payment platforms.
The issuance of consumer vouchers will increase residents’ consumption ability and willingness, generating leverage and multiplier effects that activate the consumer market and accelerate economic recovery.
For instance, Ele.me’s “e summer free orders” series of activities have attracted Beijing resident Ms. Xie. She said, “I grabbed a free ice cream coupon on the Ele.me platform. In order to meet the minimum delivery quota, I also bought other products to make up the order.”
Wang Qing believes that since the current consumption vouchers generally offer full discounts, the pulling effect will be multiplied several times.
Throughout this year, various regions have actively resumed and expanded consumption, unleashing consumption potential and significantly enhancing the stimulating effect on economic growth. The latest data shows that the contribution rate of final consumption expenditure growth to economic growth in the first half of the year reached 77.2%, significantly higher than last year.
Zhou Maohua, a macro researcher at the Financial Market Department of China Everbright Bank, said that new consumption growth points, represented by green consumption and smart products, are gradually taking shape. In the first half of the year, many places issued special consumption coupons for new energy vehicles. Statistics show that the sales volume of new energy passenger vehicles in the first half of the year exceeded 3 million, a year-on-year increase of 37.3%.
However, the convenience of consumption coupons still needs improvement. Ms. Liu, a consumer, mentioned that she is willing to participate in various consumption coupons and preferential subsidy activities, but some of the coupons still require “drawing” or “scrambling for speed.” It is hoped that in the future, more quotas and lower thresholds can be set, or issued directly to eligible consumer accounts, making it more convenient for consumers to use them.
Considering the characteristics of summer consumption, Zhou Maohua suggests that relevant measures can be tilted towards cultural tourism accommodation, supermarket catering, green energy conservation, and so on to enhance consumer experience. Furthermore, consumer vouchers issuance methods should consider the consumption preferences of various groups and connect with key support areas and small, medium, and micro enterprises with development prospects. Additionally, the adjustment mechanism for consumer disputes and after-sales service should be improved.
Looking ahead to the rest of the year, the market generally expects that with the combined effect of relevant consumption-promoting policies and activities, annual consumption will achieve a stable recovery. The Haitong Securities Research Report predicts that with economic recovery and policy efforts, the growth rate of total retail sales of social consumer goods this year will reach 8% to 9%.
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