'Debut economy' just what doctor ordered

The "debut economy", serving as a rising consumption model, is emerging as a vital engine for igniting new consumer dynamics and shaping future consumption trends with its distinct appeal and vast potential.

The annual Central Economic Work Conference in December emphasized the need to vigorously boost consumption, enhance investment efficiency and expand domestic demand across all dimensions, with the debut economy being further spurred by the ice and snow and silver economies.

In this context, the Ministry of Commerce recently introduced plans to accelerate the rollout of policies promoting the debut economy, guiding regions to adopt localized strategies tailored to their particular strengths.

The debut economy refers to a consumption model wherein brands strategically choose specific platforms, channels or venues to unveil new products, technologies or services for the first time, with a goal of generating excitement, attracting consumer attention and driving purchasing behavior by offering exclusivity, novelty and unique experiences.

Against the above-mentioned policy backdrop, this model aligns seamlessly with contemporary consumer demand for personalization, quality and experiential engagement. It also provides businesses with opportunities for innovation and brand-building while injecting fresh vitality into China's economic landscape.

The debut economy represents a dual narrative — fostering consumer-driven growth and pioneering economic innovation. It addresses diverse consumer needs, promotes industrial upgrading and contributes to high-quality development, all while reinforcing China's domestic demand.

Boosting consumption

At the core of the debut economy lies "first launches", where brands — whether domestic or foreign — unveil new products to stimulate sales.

The rise of this model is deeply rooted in the evolving dynamics of China's consumption patterns. On the one hand, consumer behavior has shifted from outward display to inward satisfaction, seeking more personalized, practical and quality-driven consumption experiences. The novelty and exclusivity offered by the debut economy precisely meet these evolving consumer preferences, sparking enthusiasm and driving demand.

On the other hand, advancements in digital technology and the proliferation of mobile payment systems have laid a robust foundation for the debut economy. Online platforms have eliminated geographical barriers, enabling swift access to new products and services, while seamless payment systems have enhanced transactional efficiency. Moreover, evolving social media networks have also amplified the debut economy's reach, with user-generated content creating a ripple effect that drives widespread interest.

This shift in consumer behavior — from basic necessity-driven consumption to a focus on emotional fulfillment and experience — is the underlying force powering the debut economy's success. Coupled with today's transition from "consumption upgrading" to fundamental consumption-driven growth — which emphasizes the quality and growth of fundamental consumption and service sectors — the debut economy is expected to further unleash the vast potential of China's consumer market and drive sustained growth in the sector.

Moreover, the debut economy can also serve as a trendsetter in shaping consumer preferences, encouraging structural upgrades and fostering overall market prosperity. For example, whether via head-turning cutting-edge gadgets or fashion-forward apparel, debut events can easily captivate younger audiences and boost related sectors. This influence can also be extended to emerging services sectors such as innovative travel experiences or unique culinary offerings, further stimulating consumption growth.

Helping businesses

Beyond its appeal to consumers, the debut economy also offers transformative opportunities for businesses. It is not only a marketing tool, but also a strategic avenue that fosters innovation, enhances brand value and strengthens market competitiveness.

For businesses, thriving in the debut economy calls for substantial investments in research and development to produce innovative and competitive goods and services. The need to stand out during product launch events will push companies to innovate in a continuous manner and establish a competitive edge in an evolving market landscape.

Furthermore, the debut economy serves as a platform for enhancing brand image and value. Well planned launches, whether on specific platforms or in targeted venues, may attract extensive media coverage and consumer attention, thus amplifying brand visibility and fostering loyalty. Successful campaigns also help create brand advocates, a cornerstone for sustained growth.

In line with the Central Economic Work Conference's emphasis on quality-driven and innovation-led growth, the debut economy embodies these priorities by encouraging corporate innovation and industrial upgrading. And on the government side, more supportive policies such as tax incentives and structural fee reductions are expected to further support the new economic model and empower businesses to amplify their R&D efforts and bring more innovative products to the market.

Driving high-quality growth

The debut economy serves as more than just a consumption trend. It's also an economic phenomenon with significant implications for growth and social progress.

First, the debut economy directly stimulates consumption growth. By introducing novel products and services, businesses can attract consumers, thereby increasing retail sales. This growth in consumer activity, in turn, generates a positive ripple effect across related industries such as logistics, advertising and event management. These sectors all benefit from increased demand, creating a virtuous cycle that drives broader economic expansion.

Second, it fosters a shift in consumption patterns, paving the way for structural optimization within the economy. As consumers gravitate toward higher-quality, innovative products and services, businesses are compelled to invest in technological advancements and upgrade their industrial capabilities. This process will facilitate China's overall transition from traditional to emerging industries, and eventually provide support for the country's broader economic transformation.

In addition, the debut economy's strong performance offers significant upside to the labor market. Companies involved in the debut economy often provide targeted training and development programs, ensuring that employees are equipped with the skills needed to excel in an innovation-driven environment. Spanning product development, marketing, distribution and more, this need for specialized and skilled talent will help create new job opportunities and raise workforce quality.

By aligning with the Central Economic Work Conference's emphasis on boosting domestic demand and consumer confidence, the debut economy serves as a key lever for unlocking China's consumption potential. Its alignment with high-quality development goals — such as promoting industrial upgrading, encouraging technological innovation and enhancing resource efficiency — positions it as a key element of sustainable economic progress.

To maximize the debut economy's potential, continued policy support is essential. Policymakers are expected to introduce measures that encourage corporate innovation, facilitate the development and promotion of new products, and create a competitive market environment. Strengthening consumer rights protections will also be critical to ensuring the healthy and sustainable growth of this dynamic economic model.

The views do not necessarily reflect those of China Daily.

Cheng Shi is chief economist at ICBC International Holdings Ltd, a wholly owned subsidiary of Industrial and Commercial Bank of China in Hong Kong, and Xu Jie is a macroeconomic analyst at the company.