Digital tech reshaping services spending

TIANJIN — From virtual and augmented reality experiences that bring museum collections closer to visitors, to artificial intelligence-powered travel planning and personalized recommendations on e-commerce platforms, digital technologies are fundamentally reshaping how Chinese consumers discover and enjoy exciting new services.

In response to this wave of enthusiasm, the country's service consumption is evolving, becoming smarter and more dynamic than ever before.

In the first half of 2026, retail sales of services in China rose 5.3 percent year-on-year — 4.2 percentage points faster than goods sales. Tourism, consulting and leasing services, and cultural, sports and leisure services all posted double-digit growth, according to data released by the National Bureau of Statistics.

In August 2024, China's State Council issued guidelines to promote high-quality development in services consumption, urging innovation to unlock the sector's internal momentum and cultivate new drivers of growth. Digital technology is now emerging as a key enabler in that effort.

AI, in particular, is becoming deeply woven into consumer spending on services. In June, the Ministry of Commerce and seven other government departments rolled out an implementation plan to accelerate "AI plus consumption", introducing 17 measures focused on three priorities: expanding smart product consumption, empowering services and creating new consumption scenarios.

The performing arts market offers a compelling example. In 2025, China's large-scale commercial performances generated over 30 billion yuan ($4.45 billion) in box-office revenue and spurred more than 220 billion yuan in related cultural and tourism spending, according to data from the China Association of Performing Arts. That booming demand calls for richer and more targeted services.

In China, consumers can already plan trips easily through various mobile apps. Yet friction points remain: choosing a well-located hotel, ensuring smooth transfers between bookings and finding reasonably priced restaurants near tourist attractions.

Beyond improving individual experiences, digital tools are also transforming how service providers interpret market demand. Data generated through digital platforms are making previously invisible consumer preferences measurable, comparable and traceable.

Meituan, a major local services platform, offers a clear case in point. Zhang Lin, president of the Meituan Research Institute, said platform data show that online consumption among people over 50 is growing rapidly, and their share of bookings for four-star and above hotels is significantly above average.

These insights are shining a spotlight on the spending power and willingness to spend that middle-aged and older consumers have long been overlooked for.

Chinese consumers are moving from "buying useful products" to "buying what they like". This shift requires service providers to strengthen their ability to understand consumers, craft engaging scenarios and build communities. Digital technologies are helping them do just that.

According to the Ministry of Commerce, online service consumption in China grew 22 percent in 2025. During the same period, online sales of sports event tickets, tourism products and dining services jumped 63.3 percent, 40.6 percent and 23.7 percent, respectively.

Many industry observers believe digital technologies are generating more diverse service offerings and fostering entirely new consumption scenarios. By shifting from standardized supply to personalized matching, and from complex decision-making to more targeted outreach, digital innovation is steadily driving the upgrade and expansion of China's service consumption.

XINHUA-CHINA DAILY