China demonstrated huge potential of its consumer market as it sees consumption craze in the service industries during the seven-day national holiday, aka “Golden Week”, despite the government’s advocacy on stay-at-home celebrations.
The recent improvement in pandemic control strengthened consumer confidence and boosted the service sectors including food and beverage (F&B), travel, cultural and entertainment industries during the ‘Golden Week’, the seven-day holiday from 1st October.
A Golden Week consumption trend report published by food delivery giant Meituan shows a 51.6% increase of total consumption in the service industries, including the dining sector, compared with the pre-pandemic 2019 National Day.
Founded in 2010, Meituan is China’s biggest food delivery service provider and boasts 628 million active users. It has gradually expanded its service from food delivery to other offerings from bike shares to hotel booking.
Shanghai, Beijing and Shenzhen recorded the highest consumption amount nationally, while Wuhan, the epicenter of the pandemic, recorded the highest growth of 61.5% during the week.
For the dining sector, Meituan’s group buying orders of food and consumption at restaurants increased 49% from last year. Meituan’s consumer reviews app Dazhong Dianping shows the orders of restaurants featured in the ‘National Day must-eat list’ has increased by 50.8% from the pre-‘Golden Week’ period.
While Chengdu, Beijing and Shenzhen recorded the highest consumption amount in dining, Nanchang, capital of Jiangxi province, recorded the highest increase of 128% in food consumption orders.
Among all the food categories, “hotpot” is the most popular food category, receiving the highest food orders among consumers from all provinces, and grew by 29.9% in orders over last Golden Week.
The service industry is further boosted by the emerging trend of regional tourism, which is now the top chosen means of celebrating the National Day under the stay-at-home decree.
Youngsters are taking the chance to explore individualised trips or novel destinations in their hometown.
For cultural events, the orders of art museum trips and museum trips on Meituan during the ‘Golden Week’ grew by 595.9% and 115.5% respectively from last year.
Music festivals are also sought after by youngsters, in which Chengdu, capital of Sichuan province in southwestern China, surpassed Beijing as the city with the highest number of music performance ticket orders, as shown by Meituan’s data.
Family-oriented consumers have demonstrated their strong purchasing power during their first ‘Golden Week’ after the implementation of ‘double reduction’ policy aimed at easing parents and children’s education-related pressure.
The orders related to shopping malls increased 77.9%, and the average number of visits to family entertainment stores increased 36% from last year, according to Meituan’s data.