China kicked off the 2021 National Consumption Promotion Month on May 1 in Shanghai. [Photo provided to chinadaily.com.cn]

China kicked off the 2021 National Consumption Promotion Month on \r\nMay 1 in Shanghai, aiming to boost consumption as the retail sector \r\ncontinues to rebound from COVID-19-induced spending caution.

The launch ceremony, attended by Shanghai's Party Secretary Li Qiang,\r\n also unveiled the second edition of Shanghai's 5-5 Shopping Festival, \r\nwhere merchants encourage customer spending through introducing new \r\nproducts, subsidies and activities.

Minister of Commerce Wang Wentao said at the launch ceremony that \r\nsome 1,300 promotional activities will be held around the festival \r\nseason to "further stimulate market vitality, unleash consumption \r\npotential, and better serve to build a new development pattern".

"During the first spring of the '14th Five-Year Plan' period, China's\r\n economy, which is off to a stable and sound start, has exhibited strong\r\n resilience and vigorous consumption momentum. The robust consumption \r\nmarket has been the top driving force for driving China's economic \r\ngrowth for years," said Shen Haixiong, president and editor-in-chief of \r\nChina Media Group, a co-organizer of the serial event.

Shen said the broadcasting giant would leverage its mighty \r\ncommunication capability to promote the events to help drive \r\nhigh-quality growth and aid Shanghai's ambition to become an \r\ninternational consumption hub.

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

From 8 pm to 10 pm on May 1, consumption spending topped 2 billion \r\nyuan in Shanghai, according to joint data provided by China UnionPay, \r\nAlipay and WeChat Pay.

Cosmetics giant L'Oreal is bringing 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.

China kicked off the 2021 National Consumption Promotion Month on May 1 in Shanghai. [Photo provided to chinadaily.com.cn]

"Last year the 5-5 festival was a big re-boost of 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 consumption of local specialties from far-flung regions, \r\nShanghai-based e-commerce site Pinduoduo offers 45 percent off on a \r\nvariety of special agricultural goods, such as coffee from Yunnan \r\nprovince and yak meat from Qinghai province.

Consumers stand to access these goods not only through 11 offline \r\nshops across Shanghai, but can enjoy the deals via a dedicated online \r\ncampaign by obtaining virtual coupons and subsidies worth 10 billion \r\nyuan.

The company is hoping that the online campaign, in partnership with \r\nsome 15,000 Shanghai-based brands and corporations, can benefit nearly \r\n800 million consumers nationwide.

Auto services platform Tuhu plans to offer subsidies around 1 billion\r\n yuan worth of subsidies that allow customers to purchase car \r\nmaintenance package from 99 yuan, and is debuting a number of high-end \r\ntires from Europe.

"Last year's event has given our business a substantial boost," said \r\nTuhu's president Hu Xiaodong. "We see the event as an effective bridge \r\nbetween merchants and customers. We also sense the further, great \r\nimprovement of business environment."

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

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 prior to the pandemic.