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Department stores, shopping malls, etc. will undergo renovation and upgrade! 7 departments issued a document.

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2024-12-26

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Editor-in-Chief | Yang Ming

Editor | Liu Kaiye

Source | China Government Website

· Focus on the transformation and upgrading and innovative transformation of retail commercial facilities such as department stores, shopping malls, supermarkets, and community commercial centers.

· Strive to initially form a modern retail system with abundant supply, balanced layout, diversified channels, high-quality services, smart convenience, and green and low-carbon characteristics by 2029.

· The plan deploys five aspects of work tasks. First, promoting scenario-based transformation; second, promoting high-quality supply; third, promoting digital empowerment; fourth, promoting diversified innovation; and fifth, promoting supply chain improvement.

· Each year, a batch of pilot cities for retail innovation and upgrading will be identified, a batch of existing retail commercial facilities will be renovated, and a batch of typical cases with mature experience will be promoted.

Notice of the General Offices of the Ministry of Commerce and Six Other Departments on Issuing the Implementation Plan for the Retail Industry Innovation and Upgrading Project

Commerce, development and reform, housing and urban-rural construction, culture and tourism, and market regulation departments of each province, autonomous region, municipality directly under the Central Government, city separately planned, Xinjiang Production and Construction Corps; Shanghai Head Office of the People's Bank of China; branches of each province, autonomous region, municipality directly under the Central Government, and city separately planned; each dispatched institution of the China Securities Regulatory Commission:

In order to thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the second and third plenary sessions of the 20th Central Committee, as well as the fourth meeting of the Central Committee for Financial and Economic Affairs, to improve the modern commercial circulation system, improve the long-term mechanism for expanding consumption, and accelerate the diversified development of the living service industry, the Ministry of Commerce and six other departments have jointly formulated the "Implementation Plan for the Retail Industry Innovation and Upgrading Project." This is now issued to you; please earnestly implement it in conjunction with the actual situation.

General Office of the Ministry of Commerce

General Office of the National Development and Reform Commission

General Office of the Ministry of Housing and Urban-Rural Development

General Office of the Ministry of Culture and Tourism

General Office of the People's Bank of China

General Office of the State Administration for Market Regulation

General Office of the China Securities Regulatory Commission

November 15, 2024

Implementation Plan for the Retail Industry Innovation and Upgrading Project

The retail industry is related to national economy and people's livelihood. It is an important component of the modern commercial circulation system, and also an important carrier for guiding production, expanding consumption, absorbing employment, and ensuring people's livelihood. It plays an important role in prospering the market and smoothing economic circulation. China's retail industry has a large market scale and many business entities, but there are problems such as unbalanced development, insufficient high-quality supply, and "involution-style" competition, which urgently need to be optimized and adjusted. In order to implement the spirit of the 20th National Congress of the Communist Party of China and the second and third plenary sessions of the 20th Central Committee, as well as the fourth meeting of the Central Committee for Financial and Economic Affairs, to improve the modern commercial circulation system and the long-term mechanism for expanding consumption, and to accelerate the diversified development of the living service industry, this plan is formulated.

I. Overall Requirements

Adhering to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as guidance, comprehensively, accurately, and fully implementing the new development philosophy, following the approach of "comprehensive deployment and pilot exploration," focusing on the transformation and upgrading of retail commercial facilities, improving the working mechanism, innovating the working methods, strengthening support policies, and achieving high-quality development of the retail industry through promoting scenario-based transformation, high-quality supply, digital empowerment, diversified innovation, and supply chain improvement.

By identifying a batch of pilot cities for retail innovation and upgrading each year, completing the transformation of a batch of existing retail commercial facilities, and promoting a batch of typical cases with mature experience, by 2029, a modern retail system with abundant supply, balanced layout, diversified channels, high-quality services, smart convenience, and green and low-carbon characteristics will be initially formed.

II. Main Tasks

(1) Promoting Scenario-Based Transformation. Giving full play to the role of operating entities, focusing on strengthening functional positioning, optimizing internal and external environments, adding user-friendly service facilities, and enhancing unique features, promoting department stores and shopping malls to carry out "one store, one policy" transformation, and improving efficiency through operations. Encouraging integrated commerce, creating new landmarks with "one-stop" services such as shopping, dining, socializing, and entertainment to meet all-round consumer needs. Innovating fashionable commerce, developing the first-release economy, introducing globally renowned brands, supporting the first stores, first exhibitions, and first shows, and cultivating "youth power," "she economy," and "artistic style." Advocating curatorial commerce, innovating diverse experiential scenarios such as performing arts, exhibitions, culture, and animation to enrich consumption content. Cultivating themed commerce, encouraging the linkage of commerce with technology, nature, art, sports, and parks, carrying out clever transformation and micro-updates to form characteristic spaces, meeting social and parent-child consumption needs. Improving community-based commerce, developing community-based shopping malls and convenient commercial centers, enriching basic guarantee-type formats such as convenience stores and vegetable markets, as well as quality improvement-type formats such as entertainment and fitness, promoting the construction of complete communities, strengthening age-friendly and child-friendly transformations, creating a 15-minute convenient life circle, and holding convenient life festivals.

(2) Promoting High-Quality Supply. Adhering to the principle of consumer-centricity, operating with integrity, prioritizing quality, and prioritizing service, optimizing the supply of goods and services. Encouraging the "trade-in" of traditional consumer goods such as automobiles, home appliances, and home decoration and kitchen and bathroom products, and cultivating new consumption growth points such as smart homes, digital products, smart wearables, big health, cosmetics, and pets. Promoting national goods "trendy products," developing themed cultural and creative products, characteristic intangible cultural heritage, and tourism souvenirs, promoting old brands to increase varieties, improve quality, and strengthen brands, entering shopping malls, pedestrian streets, transportation hubs, and scenic areas. Supporting the establishment of special areas and counters for elderly services and maternal and infant products, enriching products such as elderly care, daily aids, health promotion, and educational toys. Encouraging the provision of professional and user-friendly pre-sales and after-sales services such as "skinless" weighing and integrated delivery and installation, improving product competitiveness and cost-effectiveness through additional services. Encouraging the import of high-quality goods, attracting global brands through international exhibitions, foreign business cooperation, and cross-border e-commerce channels, connecting with global high-quality suppliers to implement cross-border direct procurement, and introducing high-quality goods from countries participating in the "Belt and Road" initiative.

(3) Promoting Digital Empowerment. Promoting the deep integration of physical retail and the digital economy to form new productive forces and improve retail efficiency. Encouraging retail enterprises to jointly promote the commodity barcode system based on the Global Standard 1 (GS1) with suppliers, promoting data interoperability across the entire chain and smooth data collection and exchange. Encouraging the application of digital technology to optimize standard processes, empowering store layout, inventory management, logistics and distribution, anti-counterfeiting and traceability, promoting the intelligent upgrading of information systems, and improving the after-sales service experience such as integrated delivery, installation, dismantling, and collection, returns and exchanges, and evaluation feedback. Innovating the "big to small" model, promoting technology empowerment, platform empowerment, and ecological empowerment, providing upstream and downstream enterprises with common digital solutions for key links such as digital systems, training, marketing, and payment, achieving rapid response and efficient operation. Exploring the use of artificial intelligence, virtual reality, and augmented reality technologies to create new digital consumption scenarios such as cloud shopping, cloud shopping, and cloud experience, providing services such as smart parking, smart delivery, smart energy saving, and smart security, promoting smart stores, online ordering and store delivery (pickup), contactless transactions, self-service settlement, and vending machines, making consumption more convenient.

(4) Promoting Diversified Innovation. Adapting to changing consumption trends, innovating diverse retail formats, and invigorating the retail market. Encouraging department stores to appropriately increase the proportion of catering, entertainment, and parent-child formats, exploring deep joint ventures and self-operated businesses, shifting from selling goods to selling service experiences, solutions, and lifestyles. Encouraging profit sharing and risk sharing, allowing merchants to flexibly choose between fixed rent and sales commission methods to improve store efficiency. Encouraging large supermarkets and warehouse membership stores to leverage their advantages and engage in wholesale businesses to supply goods to surrounding small businesses. Encouraging supermarkets and convenience stores to promote "digital empowerment + chain operation," developing "one-store multi-function," integrating convenient service projects, and improving customer flow, efficiency, and space utilization. Encouraging the development of new formats such as boutiques, collection stores, pop-up stores, and brand discount stores, cultivating "small but beautiful" and "specialized" specialty stores. Encouraging domestic "trendy products" to enter city duty-free shops and promote excellent traditional Chinese culture. Supporting the coordinated development of in-store and home delivery, promoting online-offline integrated instant retail (platform ordering + nearby delivery, store ordering + instant delivery), and exploring new models such as "store-warehouse integration" and "pre-sale + collection and distribution." Supporting the use of standardization to promote high-quality development, starting with key standards such as green shopping malls, identifying a number of excellent practice cases covering major retail formats, and promoting green and healthy consumption.

(5) Promoting Supply Chain Improvement. Encouraging large retail enterprises to play a leading role, strengthen supply chain collaboration, optimize distribution channels, efficiently connect supply and sales, and promote cost reduction and efficiency improvement. Supporting the joint management and sharing of inventory across the entire supply chain, promoting collection and distribution, centralized warehousing and distribution, supplier direct delivery, and automatic replenishment models to reduce multi-level inventory, repeated transportation, and unnecessary reverse logistics, allowing information to travel more and goods to travel less. Encouraging inter-enterprise cooperation in the same or different industries, developing private brands, and reducing costs and increasing efficiency through joint research and development of hot-selling products, joint procurement to increase volume, and increasing single-item procurement volume by selecting categories. Supporting the use of pallets (turnover boxes) as logistics units, handover units, and data units in the supply chain, promoting the "full-chain non-inverted pallet (box)" recycling and sharing model to improve efficiency. Supporting the improvement of product strength, promoting direct sourcing from the source, order production, and agricultural-supermarket docking, developing "clean vegetables" entering cities, using cold chain temperature control data services for fresh agricultural product sales, extending shelf life, and achieving high quality and high price. Encouraging the furniture and clothing industries to create a platform-based supply chain of "production + platform + consumers," carrying out "personalized customization + flexible production + timely logistics," and providing green furniture whole-house customization solutions. Encouraging distributors (wholesalers) to leverage their channel and professional advantages to provide retail businesses with integrated supply chain solutions.

III. Supporting Measures

(1) Increasing Financial Support. Encouraging financial institutions to support retail enterprises in upgrading store equipment, logistics equipment, energy-saving and carbon-reducing equipment, and digital transformation. Supporting financial institutions and social capital in revitalizing commercial facilities through substantial restructuring and preferential loans. Actively recommending eligible department stores, shopping malls, farmers' markets, and other consumer infrastructure projects to issue Real Estate Investment Trusts (REITs) in the infrastructure sector. Encouraging eligible retail enterprises to participate in the pilot construction of a modern commercial trade circulation system.

(2) Optimizing the Business Environment. Strengthening the rigid constraints of fair competition review, strengthening anti-monopoly and anti-unfair competition, conducting trade policy compliance assessments, establishing and improving an integrated online and offline regulatory mechanism, severely cracking down on infringements of intellectual property rights, the production and sale of counterfeit and substandard goods, and illegal acts such as low-price dumping to squeeze out competitors and disrupt market order, creating a fair competition environment online and offline. Encouraging local governments to extend the cooperation period for state-owned property facilities used for retail business operations to stabilize investment expectations. Allowing retail pharmacies to legally sell non-pharmaceutical goods and provide related health services. Encouraging support for commercial promotions, exhibitions, and other activities under legal and compliant conditions, optimizing approval processes and time limits, and reducing the burden on enterprises. Local governments shall not implicitly require cross-regional retail enterprises to establish legal branches or set up thresholds and obstacles for this purpose, increasing the operating costs of enterprises. Retail legal entities engaged in single-purpose commercial prepaid card business should complete the filing in accordance with relevant regulations.

(3) Building Communication Platforms. Local governments should create conditions and build project docking and communication platforms to attract operators, social capital, consulting agencies, and financial institutions to participate. Relevant business associations should leverage expert strength and member enterprise advantages, jointly organize investment promotion meetings and seminars on revitalizing commercial facilities with local governments, and provide high-quality resources and professional guidance. Encouraging retail enterprises to return to the essence of business, innovate and improve product strength and service experience, improve welfare benefits, stabilize the workforce, promote comprehensive development and common prosperity, and achieve a win-win situation for society, enterprises, employees, and suppliers. Exploring the establishment of a national or regional platform for information docking of revitalized retail commercial facilities projects. Leveraging the role of the key retail enterprise contact system, conducting retail big data prediction and early warning, guiding the regular release of retail business prosperity index, and analyzing and predicting market trends.

(4) Strengthening the Development Foundation. Encouraging retail enterprises to retain payment methods such as bank POS machines and not to refuse RMB cash transactions, facilitating consumption for the elderly, foreign nationals in China, and other groups. Encouraging the use of advanced technologies to improve loss prevention mechanisms in supermarkets and other retail venues. Urging and guiding commodity retail venues and online retail enterprises to carry out the source procurement, use, and reporting of disposable plastic products as required, promoting reduction, substitution, circulation, and recycling. Implementing the requirements of statistical laws and regulations, preventing the falsification of retail data. Paying attention to the protection of time-honored brands and historical buildings, and the reconstruction and expansion of above-scale commercial facilities should be reported and filed in accordance with laws and regulations, and the main body and load-bearing structure of the building shall not be changed without authorization. Strengthening the supervision of the entire process of reconstruction and expansion of commercial and residential mixed-use buildings to create a safe environment for industry development.

IV. Exploring Innovative Pilot Programs

The Ministry of Commerce will lead the implementation of pilot programs for retail innovation and improvement. Cities with high enthusiasm, good foundation, and solid policies will be selected for inclusion in the national pilot program based on applications from city governments and recommendations from provincial commerce authorities.

Local governments should provide legal convenience in terms of project planning, renovation approval, land use changes, and investment and financing. Organize market-oriented and precise investment promotion, and where conditions permit, provide preferential policies in accordance with laws and regulations. Combining the renovation of old urban communities, urban village renovation, and other urban renewal actions, as well as large-scale equipment upgrades, to comprehensively implement commercial facility renovation, improve supporting facilities such as parking, and where conditions permit, provide renovation subsidies in accordance with laws and regulations.

The pilot construction period is two years (calculated from the date of pilot program determination, with the implementation path attached). A batch of pilot cities will be determined each year from 2025 to 2029, and cases and experiences will be promoted in a timely manner to explore the formation of a long-term mechanism. Encouraging the simultaneous implementation of provincial pilot programs. The number of recommendations from provinces, autonomous regions, and the Xinjiang Production and Construction Corps is unlimited, and municipalities directly under the Central Government and cities separately planned by the state can apply directly. The application implementation plan and project list for the first batch of pilot programs (two copies, including electronic versions) should be submitted to the Ministry of Commerce before January 25, 2025 (relevant requirements are attached).

Attachment: 1. Implementation Path for Retail Industry Innovation and Improvement Pilot Program

2. Application Plan for Retail Industry Innovation and Improvement Pilot Program (Template)

3. List of Projects Planned for Renovation and Transformation in XX Province/City/Autonomous Region

Click "Read Original" to view the attached documents

Special Research on Investment in the Tourism Industry

To gain a deeper understanding of the investment and development of the tourism industry, the China Tourism Academy, in collaboration with the China Amusement Machine and Amusement Park Association and other organizations, is conducting a special research activity on investment in the tourism industry. All member units and tourism enterprises are cordially invited to participate in the research.

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CHINA ASSOCIATION OF AMUSEMENT PARKS AND ATTRACTIONS

E-mail:cae@caapa.org

Tel:+86-010-57690332

Address: Room405 Building#5 Gucheng South Street Shijingshan District Beijing China

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