Action plan identifies major tasks to boost consumption

An action plan to boost consumption in Shanghai was unveiled on Tuesday, laying out major tasks in commerce, retail, tourism and sports sectors as well as the city's economic planning bodies.

By 2027, the service industry is expected to contribute to over half of the city's total retail market, according to the action plan covering 12 major targets and dozens of specific campaigns over the next few years.

An integrated service consumption ecosystem will be formed in the next decade featuring high-quality, innovative, digitalization and green elements to fully enhance awareness and vitality of the consumption scene.

"Shanghai is set to become a word-class benchmark destination for service consumption," said Zhu Min, director of the Shanghai Commerce Commission.

Cheng Meihong, deputy director of the Shanghai Culture and Tourism Administration, said the number of performances and box office income is expected to surpass last year's.

As many as 176 performances have already been booked this year at major venues such as the Mercedes Benz Arena and Oriental Sports Center.

More coordinated efforts will be made to enhance tourists' experiences, with follow-up measures at overseas Chinese visa centers, local airports and cruise terminals.

Shanghai's tourism industry income is expected to reach 550 billion yuan (US$76.4 billion) by 2027 with the city's iconic brand identity set to become more visible and overall competitiveness to be further enhanced.

Leading digital retailers and lifestyle service platforms have pledged new measures to offer new consumption modes and trade-in services to encourage upgrade home appliances.

As much as 500 million yuan in subsidies are provided by Alibaba's retail site Tmall this year to encourage trade-in of home appliances and smart gadgets. The trade-in service will offer delivery as well as the dismantling of old machines to encourage the circular economy .

Recent data already shows steady recovery for leisure consumption in the city.

The amount of on-demand delivery for catering and groceries on Meituan jumped 20 percent in the first two months and the amount of spending from domestic tourists surged 58.5 percent in the first two months.

Also planned is a series of street bazaars, coffee festivals and offline campaigns in the city later this year to fully leverage digital capabilities to maximize the effect of local promotional campaigns such as the city's shopping festivals and the Shanghai Tourism Festival.

Selected major targets for Shanghai to become a landmark consumption destination:

• Become the first-stop for inbound tourists, with tourism industry income expected to reach 550 billion yuan by 2027
  
• Sports consumption per capita to account for about 4.5 percent of residents' disposable income, sports service consumption set to reach about 45 percent of sports consumption by 2027
  
• Speed up the construction of next generation information infrastructure, set up over 100 digital scenarios to drive up virtual consumption
  
• Build up a number of communities hosting various forms of global food gourmet, and invite over 1,000 restaurants and catering brands to open stores in the city; encourage sustainable and green canteens
• Enhance Shanghai's position as a major transport hub, attract 3 million cruise ship tourists each year by 2027
• Invite more top-tier performers, sports and exhibition events to the city