China has started a series of campaigns in May to \r\nboost consumer spending nationwide, as the retail sector continues to \r\nrebound from cautious spending caused by COVID-19.

Thirteen hundred themed activities, ranging from new product debuts \r\nto online-to-offline discounts, will be held in May and June under the \r\n2021 National Consumption Promotion Month.

In an unveiling ceremony in Shanghai on May 1, Minister of Commerce \r\nWang Wentao said the event aims to "further stimulate market vitality, \r\nunleash consumption potential and better serve to build a new \r\ndevelopment pattern".

One flagship activity under the national initiative is Shanghai's 5-5\r\n Shopping Festival, which debuted last year as the COVID-19 pandemic \r\nwaned in China to spur buying by introducing new products, subsidies and\r\n activities.

Shanghai Mayor Gong Zheng said the city will strive to become a \r\nbarometer for consumption trends, featuring new product debuts, renowned\r\n brands, tax refunds or duty free shopping. The city will also \r\naccelerate digital transformation in the consumer realm and attract \r\nglobal shoppers.

Cosmetics giant L'Oreal is using three new brands, three flagship \r\nstore debuts, two new beauty technologies and over 100 new products to \r\ncelebrate the gala, as the company recently upgraded Shanghai as its \r\nNorth Asia zone headquarters.

"Last year, the 5-5 festival was a big boost for the economy and \r\nconsumption following the pandemic," said Fabrice Megarbane, president \r\nof L'Oreal North Asia Zone and CEO of L'Oreal China. "I am so happy that\r\n we are doing this anniversary once again, witnessing this acceleration \r\nin terms of consumption."

To beef up purchases of local specialties from far-flung regions, \r\ne-commerce site Pinduoduo offers 45 percent discounts on a variety of \r\nspecial agricultural goods, such as coffee from Yunnan province and yak \r\nmeat from Qinghai province.

Consumers stand to access these goods not only through 11 offline \r\nshops across Shanghai but also via deals as part of a dedicated online \r\ncampaign by obtaining virtual coupons and subsidies worth 10 billion \r\nyuan ($1.5 billion).

China's retail sales surged 34.2 percent year-on-year in March. More \r\nsignificantly, that number jumped nearly 13 percent compared with that \r\nof March 2019, which was before the pandemic.

In the first two days of the five-day International Workers' Day \r\nvacation, which ended May 5, transactions via China UnionPay, the \r\nnation's largest card processor, jumped 6.9 percent from that of 2019 to\r\n reach 754.3 billion yuan.

The string of measures came just in time for the five-day holiday, \r\nwhich marks the first long period in which consumers have been able to \r\nenjoy travel and many leisure activities since the outbreak of COVID-19 \r\nin 2020, said Jason Yu, general manager of consultancy Kantar Worldpanel\r\n China.

"With unprecedented promotional stimulus offered by local governments\r\n and businesses, consumer spending is expected to see a surge, \r\nespecially in hard-hit service sectors such as cinemas, restaurants and \r\nhotels," Yu said. "The drive for consumption recovery is set to boost \r\nretail sales in the second quarter."

The activities not only include cash rebates but also serve as a test\r\n for new experiences and products for consumers. Freshippo, the \r\nonline-to-offline retail chain of Alibaba Group, is ready to release \r\nmore than 60 new dishes for the festival, a lot of which blend \r\ntime-honored brands with popular foods.

For instance, apart from dishing out 1.2 billion yuan worth of \r\nsubsidies, the service has come up with an iced, \r\nyellow-rice-wine-flavored crawfish, a summertime favorite snack \r\ntypically featuring pungent and spicy flavors.

"We really want to bring old-time memories to local diners, as they \r\nget a bite of innovative dishes," said Chen Meijun, Freshippo Shanghai's\r\n manager for catering and "3R", which stands for the company's pledge to\r\n offer ready to cook, ready to heat and ready to eat foods.

"Stable domestic demand is the most constant and sustaining driving \r\nforce of economic development," said Wang Junchao, an assistant \r\nprofessor of economics at the National Academy of Governance. "It's also\r\n China's biggest advantage in dealing with the complex external \r\nenvironment."

Major cities such as Beijing, Chongqing and Suzhou will also hold \r\nsales in May, Gao Feng, a Ministry of Commerce spokesman, said at a news\r\n briefing last month.

Haikou, Hainan province, which is positioned as a major Chinese \r\nconsumption and tourism hub, will hold its inaugural consumer goods expo\r\n May 7-10.