Seven ministries launch joint plan to boost modernization of retail sector as part of efforts to boost consumption

Staff members sort parcels at a delivery center in Lianyungang, east China’s Jiangsu province, 11 November 2024, as the “Double 11” online shopping festival drives up the number of national parcels. Photo: VCG

China on Monday launched a joint plan to boost innovation in the retail sector in the latest efforts to boost domestic consumption, according to a notice published on the official website of China’s Ministry of Commerce (MOFCOM). ).

The plan, rolled out by seven ministries including MOFCOM, the National Development and Reform Commission and the Ministry of Culture and Tourism, pledges to improve the long-term mechanism of consumption by expanding among other mechanisms , according to the notice.

According to the plan, the country will first establish a modern retail system by 2029, characterized by rich supply, balanced distribution, diversified channels, high-quality services, intelligent convenience and low emissions. of carbon.

To achieve this goal, efforts will be made, including designating a group of pilot cities to improve retail innovation each year, renovating a number of existing retail facilities and promoting a selection of well-established success stories, the document says.

The issuance of the notice reflects the country’s increasing attention to consumption, Zhou Mi, a senior researcher at the China Academy of International Trade and Economic Cooperation, told the Global Times on Monday, adding that promoting Consumption growth has been a long-standing priority. effort, and “now the goal is to continue to drive it effectively.”

“This time, the focus is on strengthening and improving areas that have been relatively weak in the past, such as innovation,” Zhou noted.

Monday’s plan includes five areas to boost the retail sector, including promoting scenario-based transformations such as developing the “first-run economy.”

Additionally, the plan includes improving the quality of supply by focusing on consumer-oriented product offerings and improving service experiences. Other key areas of retail development include promoting digital empowerment, fostering diversified innovation and modernizing the supply chain.

A MOFCOM official said Monday that the retail sector is crucial to the country’s economy and people’s livelihoods, stressing that the retail sector is a key link in the trade and commerce system. of circulation.

The plan is drawn up with the aim of fully implementing the spirit of high-level meetings such as the Central Economic Work Conference held last week that chart the course for the nation’s economic development.

Zhou said the plan comes at a critical time and sends a strong signal to the market that “China intends to treat consumption stimulation as a systemic policy, promoting coordination among various related policies to create strength unified”.

In recent years, the overall development of China’s retail industry has remained positive, with steady growth in scale. From 2021 to 2023, the annual growth rate of total retail sales of consumer goods was 6.0%, according to MOFCOM.

The latest data released by the State Bureau of Statistics on Monday also showed a continued positive trend, with total retail sales of consumer goods reaching 44.27 billion yuan ($6.08 billion), an increase of 3.5% over one year during the first 11 months. of 2024.

Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, told the Global Times on Monday that the plan provides a clear direction for the future development of the retail sector.

In the future, more policies will be needed to support the development of the retail sector, such as tax incentives and special subsidies, to create a better environment for retail businesses to thrive, said Mr. Wang.

“With the government’s guidance and support, retail enterprises should actively respond to challenges such as low consumption and achieve high-quality development through innovation and transformation,” Wang added. .