The number of online shoppers in China has exceeded 900 million, marking a significant shift in the consumer market driven by digital consumption. In a recent report from the China Internet Network Information Center, titled “Blue Book on the Role of the Internet in Digital Consumption Development,” we learn that digital shopping is not only deeply integrated into everyday life but also reshaping the landscape of consumer behavior and expectations for supply upgrades.
As we observe the rise of instant retail, the popularity of domestic brands online, and the ease with which seniors can place orders at the touch of a button, it’s clear that innovative consumption models are thriving and constantly creating new growth opportunities. Digital consumption is emerging as a new driving force for expanding domestic demand and facilitating high-quality economic growth.
According to the Blue Book, nearly 60% of online shoppers have purchased domestic “trendy goods,” and 66.5% believe that the quality of these products matches that of foreign brands. Zhang, a 25-year-old working in an internet company in Beijing, shared, “I’ve bought many domestic trend pieces like silk skirts and traditional jackets. I love wearing them while shopping or traveling during holidays.” This sentiment reflects a growing recognition and trust in homegrown products, coupled with an emotional connection to local culture.
Digital consumption is also profoundly influencing the tourism sector. Take Ms. Li from Beijing, for example, who decided on a spontaneous trip to Yunnan. With just a few taps on a travel app, she booked flights, accommodations, and even a ride from the airport—all in under five minutes. As of December 2023, over 500 million people in China have engaged in online travel bookings, representing more than a 20% increase over the previous year.
Short videos and live-streaming platforms have become crucial in shaping the landscape of digital tourism, creating popular IPs around travel content and driving interest in “county tourism” and “small-town getaways.” New scenarios such as “city strolls,” “camping experiences,” and “night economy” have emerged, contributing to the growth of travel-related consumption.
Furthermore, new consumption trends centered around green, healthy, and smart products are on the rise. The data reveals that 25% of online shoppers have purchased energy-efficient products in the last six months, while 26.1% have bought health and wellness items, and 25% have invested in smart home technologies.
According to Zhang Xia, Deputy Director of the China Internet Network Information Center, “With the continuous release of policy dividends, innovation in the ‘smart+’ sector is accelerating, leading to a demand for high-quality products and services, enriching new business models and scenarios, and creating a vast potential for digital consumption growth.”
Digital consumption scenes are expanding rapidly, facilitated by the deep integration of the internet and digital technologies. The convergence of online and offline experiences, as well as various business models, has become a defining characteristic of digital consumption. Live-streaming, short video commerce, and instant retail are flourishing, covering multiple consumption scenarios and driving growth.
Live-streaming and short video e-commerce have emerged as significant catalysts for consumer conversion. For instance, in Shucheng County, Anhui Province, Zhang Zhijiu, head of a farmers’ cooperative, livestreams her goats while taking orders for mutton and other farm products directly on her phone—a glimpse into the wave of agricultural e-commerce reshaping markets nationwide. According to the Blue Book, among users who watch short videos or live streams, 71.2% have made purchases as a result, indicating the influence of these platforms on buying decisions.
Instant retail, another thriving model, caters to consumers’ urgent needs. Mr. Chen in Shanghai found himself feeling under the weather one night and within 20 minutes of ordering through a pharmacy app, he had medicine delivered to his door. The data shows that 26.4% of online shoppers utilize instant retail services, demonstrating how this model expands consumption beyond traditional settings into everyday life.
As digital consumption continues to evolve, so too does its user base. A diverse group of consumers—spanning generations and demographics—are actively participating in this growing market. The Blue Book highlights that Gen Z and Millennials are leading the charge in digital shopping, with usage rates of 88.5% among Gen Z shoppers, who are particularly focused on personalized, trendy, and smart consumption.
Senior consumers, often referred to as the “silver generation,” are also emerging as a powerful segment in the digital marketplace. For instance, a technology firm in Chengdu has developed a device that uses a camera to monitor elderly individuals’ movements for potential health risks, which has gained significant traction online.
Data shows that about 69.8% of internet users aged 60 and above are engaged in online shopping, with considerable interest in health and travel products. Additionally, rural consumers are proving to be a vital force in digital consumption, with online shopping rates reaching 76.7% among rural netizens, who show a preference for shopping through short video platforms at slightly higher rates than their urban counterparts.
Chen Yinjian, Deputy Secretary-General of the Consumer Rights Protection Law Research Association, emphasized the need for regulatory bodies to adapt laws and standards to support the evolving landscape of digital consumption, ensuring legal protections for new business models and consumer groups.
Looking ahead, experts believe that empowering both supply and demand will be essential to drive sustainable growth in this sector. By nurturing healthy, green, smart, and personalized consumption models, and leveraging shifts in consumer demographics through innovative products, the landscape of digital consumption in China holds promising potential for the future.
