Shenzhen flexes its muscles in spending power

A long line formed at the entrance of Wenheyou food court and snaked its way for hundreds of meters along the Buji River in Shenzhen's Luohu district on a muggy day in early April.

Those in line waited eagerly for a glimpse of the nostalgic setting of a 30,000-square-meter catering complex that features streets, restaurants and shops dating back to the 1980s, and for a taste of an array of delicacies that include crawfish, oysters, sausages and stinky bean curd.

The restaurant chain, based in Changsha, Hunan province, made a splash in Shenzhen last month, luring more than 50,000 people to its opening on April 2. The much sought-after Chinese milk-tea brand Chayanyuese, which opened a seasonal store at the complex, drew hoardes of customers. Sales were so brisk that scalpers were out in force, demanding up to 500 yuan (US$78) to help milk-tea aficionados purchase a cup priced at no more than 20 yuan.

"It's not something about eating or drinking. It's about a unique experience and a special feeling you can't get elsewhere," said Hu Tingting, a 26-year-old English teacher in Shenzhen, referring to the immersive experience of an urban culture that has been lost for decades.

The Wenheyou craze exemplifies the immense spending power of Shenzhen as the southern metropolis strives to turn itself into an international consumption city. Shenzhen's Party chief Wang Weizhong told the seventh Congress of the Chinese Communist Party Shenzhen municipal committee last month that the city will ramp up efforts to achieve its goal in the coming years.

Incentives will be offered to lure well-known global or regional brands to set up their first stores in Shenzhen. They will also be motivated to open flagship stores in the city.

World-renowned brands, or those of original designers, will be encouraged to launch new products in Shenzhen, which will also strive to host international expositions and competitions.

According to first-quarter economic data released last month by local governments, Shenzhen ranked seventh among major cities on the Chinese mainland in terms of total retail sales — a major gauge of a city's consumption power.

Shenzhen recorded 214.1 billion yuan in retail sales in the first three months of 2021 — up almost 40 percent from the same period a year earlier — given the low comparison base of 2020 because of the coronavirus pandemic. Shanghai, Beijing and Chongqing took the top three spots.

Ruan Lirong, a researcher at the China Development Institute, a Shenzhen-based think tank, said Shenzhen should take full advantage of its proximity to Hong Kong by introducing the special administrative region's rich commerce resources and sophisticated experience in the field into the city.

The city, as a pioneer in the nation's technology and innovation industry, should also accelerate innovation in commerce, and create an intelligent business landscape by making good use of 5G, big data and other advanced technologies, she said.