The consumer market in China ran on strong momentum in services and goods consumption on the National Day holiday, according to value-added tax (VAT) invoice data from the state taxation administration (STA).

Service consumption across the country was booming, with average daily spending in related industries up 19.5% year on year. Sales of a range of goods, led by home appliances, digital electronics, and kitchen and bathroom products, also grew solidly.

1. Booming Tourism Consumption Drives Diversified Accommodation Demand

As demand was surging in the domestic tourism market during this 7-day holiday, tourism, sightseeing and entertainment services earned more by 23.6% year on year, with travel agency services and amusement parks gaining more by 26.2 percent and 41.2 percent respectively.

Fueled by robust tourism spending, demand for a wider range of accommodation kept expanding. Revenue from budget chain hotels and homestay businesses grew 6.3% and 12.8% year on year, reflecting a shift in travelers’ accommodation preferences.

2. Catering Consumption Remains Strong Amid Holiday Gatherings.

Driven by family gatherings, wedding banquets, and other holiday activities, the catering industry saw a steady growth of 9% year on year in catering services, along with 15.5% and 30.6% year on year gains in snack service and fast-food service, driven by thriving specialty food streets, night markets, and outdoor travelling. Meanwhile, the booming new-style tea drinking sector led to more than triple revenue for beverages and cold drinks.

3. Cultural, Sports and Entertainment Consumption Sees Quality Upgrades.

On the holiday, new business forms and more diversified consumption scenarios were created for the consumer market in the fields of cultural performances, sports, and recreation.

Concerts, cultural performances, and folk activities staged across the country lifted revenue for cultural and artistic services by 20.9 % year on year. Artistic creation and performance services increased by 21%, while mass cultural and sports activities grew by 28.3%. The major sports events such as the China Open tournament pushed spending on sports services up 29.4% year on year.

4. Home Appliances, Digital Electronics and Kitchen & Bathroom Products Post Impressive Sales.

Sales revenue from home appliances and audio-visual equipment surged 40.1% year on year, partially driven by trade-in subsidies for consumer goods before the holiday, a wave of new digital products, and the breakout of household replacement demand. Within that, retail sales of everyday appliances such as refrigerators and washing machines rose 40.6%, and retail sales of home audio-visual equipment such as televisions rose 36.6%. Sales revenue from communications equipment such as mobile phones and smart bands jumped 119.8%, while retail sales of kitchenware and sanitary ware rose 52.3%.

5. Spending on personal well-being and lifestyle emerged as a new growth driver.

Over the holiday, a new growth pole was evident, with major spending in pet services, fitness and bodybuilding, and hairdressing and beauty services up 80.8%, 16.7%, and 37.1% year on year, respectively.