Core Insights - Consumption is identified as the main engine driving economic growth, with a strong emphasis on boosting consumption in the 15th Five-Year Plan by the Central Committee of the Communist Party of China [1] - The report by KPMG highlights successful practices in the consumption retail sector of Qingdao's Shinan District, aiming to provide a reference for regional consumption stimulation [1] Economic Performance - In 2024, Qingdao's total retail sales reached a record high of over 650 billion yuan, marking a 4.2% year-on-year increase, surpassing Tianjin and ranking second in Northern China [3] - Shinan District, as the political and cultural center of Qingdao, plays a crucial role in the city's economic and social development, with the tertiary industry contributing approximately 90% to its GDP [3][5] Income and Consumption - Shinan District boasts the highest per capita disposable income in Shandong Province at 21,827 yuan in Q1 2025, significantly above the national average [5] - The steady growth in per capita disposable income supports the continuous increase in retail sales in Shinan District [5] Retail Market Trends - The retail sales in Shinan District have shown a consistent upward trend over the past three years, with total retail sales reaching 79.2 billion yuan in 2024, and per capita retail sales approximately 161,000 yuan, which is 4.6 times the national average [9] - The district's vibrant consumption market is driven by a well-developed cultural tourism industry that attracts numerous visitors [9] Consumption Structure - Shinan District has established a comprehensive consumption matrix, including core business circles and community commercial centers, catering to diverse consumer needs [12][13] - The district is focusing on various consumption sectors such as fashion, dining, marine leisure, wedding services, and senior care, promoting a diversified consumption landscape [18] Brand Development - The "Four Firsts" economy is thriving in Shinan District, with 54 new brand stores opened in 2024, accounting for 67.5% of the city's total, and over 380 first stores established [22] - The district is home to 24 time-honored brands, representing 20% of the city's total, and has become a key area for high-end brands, housing over 1,000 first-tier brands [22] Future Outlook - Shinan District is leveraging policies to enhance consumption quality through investment attraction, business circle upgrades, and new consumption models [24] - The district aims to develop new consumption patterns, including night economy and event economy, with night consumption accounting for 65% of total sales in key business areas [24] - Shinan District is also a hub for foreign trade, with over 3,000 foreign trade entities and a total export value of 51.79 billion yuan in 2024, reflecting a 3.6% year-on-year increase [24]