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02:09
China: Rising debut economy boosts consumer spending in China
[Voiceover] In China, so-called "debut economies" in several major cities have become growth drivers in the first two quarters this year. With an aim of invigorating consumer spending and boosting brand's exposure, a "debut economy" includes activities related to businesses launching new products, services or flagship stores in cosmopolitan cities across the country. The push by Chinese policy makers to develop "debut economies" seems to be working. According to official data, there were more than 2,600 product and flagship store launches in the first two quarters this year in places like Shanghai, Shenzhen, and Chongqing. And in southwest China's Chengdu, where close to 400 stores were launched in the first six months of the year, for a total of about 4,000 to date. On the city's iconic Chunxi Road, officials say a new product, brand, or flagship store is launched every two days or so. The manager of a cultural communications company said they were very pleased with their presentation along the bustling commercial avenue. [Soundbite] Shao Runhong, deputy general manager, culture communication company: "This is the most vibrant commercial street at the very heart of Chengdu. It is considered the most sought-after place for companies to launch their products. What we achieved through this exhibition far exceeded our expectations." [Voiceover] Elsewhere in the city an employee from a mall management company said dozens of new stores that opened this year are helping boost overall sales in the facility. [Soundbite] Zhang Ying, senior manager, shopping mall operator: "Over this first half of the year, our mall inaugurated eight ‘first-stores', bringing the total number of our ‘first-stores' to 38 which accounts for a quarter of all the stores here. But the sales volume reported by these ‘first-stores' exceeded 90 percent of the combined sales at the mall." [Voiceover] Similar "debut economies" have seen success. The First In Shanghai initiative has been ongoing since 2018 which has helped turn the city into a top destination for luxury international brands to launch their first or flagship stores. Data shows that last year 1,269 ‘first stores’ opened in Shanghai including 14 ‘first in Asia’ stores. [Restrictions: No access Chinese mainland]
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