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Economic Watch: Non-standard commerce transforms China's distinctive consumer market

Pub Date:2025-01-24 09:44 Source:Xinhua

CHONGQING, Jan. 23 (Xinhua) -- In southwest China's Chongqing Municipality, abandoned factories and warehouses have been transformed into vibrant cultural and creative hubs, while old neighborhoods have been revitalized with unique bistros and cultural exhibitions, turning them into popular tourist destinations.

In recent years, a new business model, distinct from traditional department stores, has emerged in China's consumer market, becoming a key driver of consumption. This model, known as non-standard commerce, blends shopping with art, culture, dining and design, creating comprehensive experience spaces.

Some old factory buildings have been repurposed as creative industry parks, such as TESTBED2 in Chongqing and Eastern Suburb Memory in Chengdu, Sichuan Province, offering fresh perspectives on the history of urban development.

These transformations are part of a broader trend where commercial complex spaces, centered around interest-based culture and a slower-paced lifestyle, contrast with the fast pace of urban life. Another prime example is Shanghai's Hongshoufang neighborhood, established in 1933, which has become a new landmark, attracting both young and elder consumers.

The newly opened Luzu Temple traditional street in Chongqing is a commercial complex that blends shopping, culture and social interaction, preserving the charm of the century-old streets while seamlessly incorporating modern design elements.

"From the artisan market in the late Qing Dynasty (1644-1911) to the later book market and flower market, Luzu Temple has always embodied both cultural and commercial significance," said Shu Chang, the manager of Uncle Tea Restaurant.

On the opening day, the restaurant was bustling with young customers, from both the local area and other regions. The retro style of its outdoor dining area, which is seamlessly integrated into the local community, attracted many visitors who took photos and shared their experiences. Despite its small size, covering about 70 square meters, the establishment can generate up to 300,000 yuan (about 41,836 U.S. dollars) in monthly revenue.

As young consumers enter the market, traditional retail models can no longer meet their demand for culture, art and social interaction, leading them to increasingly flock to non-traditional commercial spaces.

"Non-standard commercial ventures in places like abandoned factories and public areas attract more young people," said Tang Zhengyi, head of the commercial department at Cushman & Wakefield in Chongqing.

In a heritage building, classic Shaw Brothers films are screened on stage as patrons chat below, occasionally accompanied by the aroma of Chinese pancakes. This is the newly opened store of the craft beer brand Peiping Machine at Luzu Temple, marking their first expansion outside Beijing.

"For the non-standard commerce, the space needs to be relaxing and uncrowded, the environment should be culturally rich and well-designed, and people at the same table should be able to have conversations and enjoy activities together," said the store manager Dai Kan.

The non-standard commerce is not about confining people to a building for transactions, but rather about offering a space for living, emotional value, and a certain consumer atmosphere, with experience being the most important element, according to Tang.

After a hectic working week, Chai Xinxin, a 24-year-old Shanghai resident, often takes her cat out for some relaxation on weekends. "In Shanghai, there are numerous pet-friendly non-standard commercial spaces where I can meet new friends who also adore cats," she said.

The non-standard commerce has been increasingly integrating into ordinary communities, spurring urban renewal and community revitalization.

Minzhucun, a housing area for employees of a state-owned enterprise, has buildings that are over 70 years old. In November 2021, the local authorities officially launched the urban renewal project for this area. A group of young individuals has entered this community, bringing in fresh trends, innovations and lifestyles.

Shops are nestled within the community, where cafes, bakeries and clothing boutiques coexist in harmony with local markets, butcher shops and hardware stores, creating an atmosphere full of pleasant contrasts.

The non-standard commerce, with its unique allure and the ability to adapt to changing consumer perceptions, has emerged as a new growth engine for consumption, possessing significant potential and broad development prospects for the future, said Tang.

Editor:Zheng Chen

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