International experience shows a clear economic pattern: as a nation's per capita GDP surpasses $10,000, service consumption begins to accelerate, eventually dominating household spending once levels reach $15,000. This trend marks a fundamental shift in modern economies.
On the Chinese mainland, the per capita GDP has now exceeded $13,000, with service consumption accounting for 46.1% of household expenditure. Although this percentage trails by about 10 points compared to the United States, Japan, and South Korea at similar development stages, the opportunity for growth is immense.
The current consumption landscape remains largely focused on traditional sectors such as hospitality, catering, and domestic services. However, there is significant potential in expanding mid-to-high-end services like healthcare, wellness, and customized consumer experiences that better meet evolving lifestyle demands.
Moreover, the cultural and tourism sectors are poised for transformation. In 2023, the trade deficit for travel services reached $181.7 billion, highlighting a substantial reservoir of untapped potential. Experts stress that "investing in people"—enhancing skills, well-being, and personalized service—is key to unlocking this growth and evolving toward a more integrated consumption model.
This dynamic transition offers exciting prospects for young global citizens, business innovators, thought leaders, and digital nomads. As the Chinese mainland embarks on this critical shift from a goods-dominated model to one with a balanced emphasis on services, the ripple effects are set to redefine economic and cultural trends on a global scale.
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Service consumption and 'investing in people' key to expanding demand
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