Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

As China’s ‘vendor economy’ goes from state approval to pariah, analysts see synergies with commercial real estate market

As China’s ‘vendor economy’ goes from state approval to pariah, analysts see synergies with commercial real estate market

Premier Li’s call for loosening of controls on street vendors swiftly rejected by Shanghai, Beijing city authorities. Cushman & Wakefield sees merits in promoting concept as a way to spur employment and synergies with real estate market

China’s street vendor economy is getting some mixed signals from municipal governments after an apparent endorsement from the State Council, causing confusion about the role of small businesses in the midst of a slump.

Since Premier Li Keqiang called for a loosening of controls on small vendors on the streets of Yantai in Shandong province, the message has been interpreted as a nod for mobile stalls to alleviate an unemployment crisis and provide an income avenue for millions of workers displaced by the coronavirus pandemic.

The endorsement powered a short-lived rally in stocks of companies that produce everything from minivans to kitchenware – the kind of things a small street-level vendor might need – on the Shanghai stock exchange. Within days, Beijing city authorities promptly killed the euphoria, branding the vendor the system as “unhygienic and uncivilised.”

Gordon Liu, head of North China capital markets at Cushman & Wakefield, suggests looking into the merits of the “vendor economy” and how it can generate employment while creating synergies within the mainland commercial property market.

“In essence, the new idea [of the vendor economy] aims to boost spending and foot traffic by investing more time, land and real estate resources to bolster commercial activities around the country,” Liu said. “It can have rosy prospects” with meticulous planning and clever ways to attract shoppers, he added.

It is more likely to succeed than fail, as an array of tech platforms, including Tencent Holding’s ubiquitous app WeChat and mobile payments platform Alipay announced new plans to help street vendors and smaller retailers recover from the economic slump.

China’s economy shrank 6.8 per cent last quarter, its first contraction since 1992 and the worst since the Mao Zedong era, due to factory shutdowns caused by the Covid-19 outbreak in January. China’s jobless rate climbed to an all-time high of 6.2 per cent in February, a level some analysts say underestimated the true picture on the ground.

Despite Li’s remarks, Beijing and Shanghai have said roaming vendors and roadside stalls do not fit in with the strategic positioning of the cities. Their presence would put visible pressure on urban management, environment, hygiene and traffic.

Liu said the vendor economy could encompass nighttime businesses, allowing for better use of idle space along established shopping streets in developed cities.

“For big cities like Beijing and Shanghai, low-priced consumer goods offered by roadside stalls are not supposed to be targeted as the local governments attempt to stimulate consumption,” he added. “The vendor economy can have a synergy with nighttime businesses and it will eventually benefit commercial properties.”

Shopping centre tenants, or well-known retail brands in clothing, food and electronics sectors, can set up kiosks during extended business hours on the bustling shopping streets or outside commercial properties to woo more shoppers, said Liu.

Zhou Lingzi, a senior manager with a state-owned commercial property operator, sees the idea as a “win-win” tactic, one which can lead to higher retail traffic and extra business hours for tenants.

“We will need the local authorities to draw up proper guidelines before taking a step forward in enforcing the plan,” he said. “As retailers rake in higher sales, mall owners will attract more tenants.”

Since last July, governments of Shanghai, Beijing, Guangzhou and Shenzhen have unveiled plans to stimulate nighttime consumption, before the viral outbreak sent everyone into home isolation.

The State Council, China’s cabinet, approved some 20 measures to spur spending, including permitting longer hours for some businesses and the creation of late-night business zones and 24-hour convenience stores.

“It all comes down to the point of innovating the business model based on each city’s own characteristics to lure consumers,” Liu said.




AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
×