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Beijing Municipal Commission of Commerce yesterday announced a package of policies to inject new vitality into the city’s consumer market, which has witnessed slack growth of traditional commerce and faces downward pressure from the macro economy.
The policies focus on boosting the development of life service sector and the transformation of traditional “old-brand” enterprises.
The government intends to create more reliable and convenient community shopping experiences for residents by paying half the bill for brand chain stores to open new stores and distribution centers in communities, or to optimize supply chain management and brand development.
Traditional handicrafts are also spotlighted this time. Workshops and projects dedicated to inheritance of traditional handicrafts will get subsidy up to 50 percent of the total input with a maximum of one million yuan($161,100).
Yu Wen, director of the e-commerce office with the municipal commission of commerce, said the new policies include measures to integrate traditional enterprises with online businesses. Department stores, supermarkets and old brands can establish independent online stores or enter third-party online shopping platforms; either form can win the government’s financial support.
The time-honored brands such as Zhang Yiyuan, a century-old tea house, and Xinyuanzhai, which makes plum syrup with formula of the imperial kitchen, have become a name card of the capital city’s traditional culture, and are now encouraged to adopt the e-commerce business model while preserving the products’ original flavor.
A senior official of the municipal commission said a special zone for Beijing’s old brands had been set up on JD.com, one of China’s most popular B2C online retail platforms. 15 brands have settled in the zone.
The government also supports e-businesses to set up brick and mortar stores to provide better customer experiences. Xiaomi, China’s most popular smartphone manufacturer committed to online marketing, has already set up “experience centers” in several shopping malls in Beijing. Other offline“experience centers” as such will get funding support up to 50 percent of the total input.
Another piece of good news for retailers is that they can apply to be tax refund stores for overseas visitors since July.
According to the municipal commission of commerce, about 80 enterprises have registered to apply at the municipal tax bureau, and more are expected to join in.
