(Yicai) Nov. 10 -- Services will drive China's next phase of consumption growth as households increasingly shift spending from goods to experiences, a Shanghai Jiao Tong University professor said at an event hosted by Yicai.

Sectors such as tourism, sports, healthcare, elderly care, childcare, educational tours, and entertainment offer the biggest potential for medium- and long-term consumption growth because they have longer value chains and stronger economic spillover effects, said Yan Hong, chair professor of finance at the university's Shanghai Advanced Institute of Finance.

China's vast domestic market provides a solid foundation for expanding consumer spending, Yan said at a consumption-boosting sub-forum during the China International Import Expo. A 10-percentage-point increase in the household consumption rate could generate around CNY10 trillion (USD1.49 trillion) in additional spending, he estimated.

But unlocking that potential will require efforts to strengthen demand, improve the supply of goods and services, create new consumption opportunities, and provide institutional support, Yan stressed.

Reflecting the shift in consumer preferences, Wang Yang, chief executive of Yicai-affiliate Yingfan Digital Technology, said Chinese consumers are increasingly seeking emotional satisfaction and personalized experiences rather than simply purchasing products. Consumer brands must develop a more precise understanding of these evolving preferences, he noted.

Yang Yudong, editor-in-chief of Yicai, said consumers' willingness to spend depends not only on their immediate needs but also on their expectations for future income, employment, and living costs.

City authorities and policymakers should therefore continue improving the business environment, stabilizing market expectations, and strengthening households' purchasing power and consumer confidence, Yang said. These efforts would also encourage businesses to invest and innovate while ensuring workers share in the benefits of economic development.

Companies need both the courage to innovate and the patience to understand consumers, while financial institutions should better recognize the long-term value of consumption-related industries and support businesses with genuine market demand and innovative capabilities, Yang added.

Looking ahead, Chair Professor Yan identified five emerging areas that could stimulate consumption: digital and smart consumption, green and low-carbon consumption, integrated services, domestic brands and cultural products, and stronger urban-rural consumption links and spending in lower-tier markets. These areas share a common theme: creating new demand through improved and innovative supply, he concluded.

Editors: Tang Shihua, Emmi Laine