Great Wall Gun 2.4T will be officially pre-sold at Beijing Auto Show, with 2.4T passenger guns and commercial guns shining swords.

  At the 2024 Beijing Auto Show, the Great Wall Cannon 2.4T, a dream car of Dali Lun, came to report for duty and was about to shine. The Great Wall Gun brand will hold a new product launch conference on April 26th. At that time, the "global high-performance pickup truck" Great Wall Gun 2.4T will be officially opened for pre-sale, and the value of pickup trucks will continue to rise.

  Global high-performance pickup truck for vehicles Let you enjoy the new experience of luxury technology

  The Great Wall vehicle gun 2.4T is positioned as a "global high-performance vehicle pickup truck", based on the tank platform and built according to the passenger car standard. It is equipped with a 2.4T diesel engine, with a maximum net power of 135kW and a peak torque of 480N·m, leading in comprehensive performance at the same level, and a 9AT transmission, which is mature and reliable in the tank platform and perfectly matched with the engine. Equipped with L2+ intelligent driving assistance level, it can realize more than 20 intelligent driving assistance functions, and the first automatic parking at the same level makes driving "easy" and safety "follow"; The cockpit is equipped with a variety of luxurious and comfortable configurations, which is more comfortable than the shoulder luxury SUV.

  Global high-performance commercial pickup truck Help you create wealth and worry-free

  Great Wall Commercial Gun 2.4T is a mature and reliable pickup truck with stronger power, lower fuel consumption. It is available in MT/AT models, equipped with a 2.4T diesel engine, with a maximum net power of 135kW. The comprehensive fuel consumption of NEDC with AT two-wheel drive is 7.9L per 100 kilometers, that of AT four-wheel drive is 8.1L, and that of MT four-wheel drive is 8.2l. It has strong power and lower fuel consumption, which helps users to forge ahead and create wealth efficiently. The size of the container is 1760*1520*540mm, and it comes standard with anti-roll frame, outer rope hook and container treasure. It has super loading capacity and unlimited modification potential, and it is efficient and adaptable to all kinds of commercial scenes, which is economical and can hold dreams.

  In addition, Great Wall pickup truck has the most complete sales service system of domestic pickup truck brands, with more than 2,000 sales service outlets, and the average service radius is less than 50km, so you can use the car with peace of mind no matter where you are.

  As the leader of pickup trucks, Great Wall pickup trucks continue to innovate in categories. At present, it has formed two categories, namely, fashion business and passenger leisure, leading the category value to jump in an all-round way. Great Wall Cannon keeps the number one in bicycle sales, with a cumulative sales volume of over 10,000 in 42 months and a global sales volume of over 560,000, which helps Great Wall pickup trucks to be the number one in 26 consecutive years, with a domestic market share of nearly 50%. For every two pickup trucks sold in China, one is Great Wall.

  This time, the passenger gun 2.4T and the commercial gun 2.4T were launched with two swords, and they made a strong debut, which will continue to expand the product matrix of the Great Wall gun, expand the diversified life for users and escort the dream of creating wealth. April 26th, so stay tuned!

The State Council Information Office held a press conference on recent investment, finance and financial related data and policies.

The State Council Press Office held a press conference at 10: 00 am on Thursday, March 21st, 2024, and invited Liu Sushe, deputy director of the National Development and Reform Commission, Liao Min, vice minister of finance, and Xuan Chang, deputy governor of the People’s Bank of China, to introduce recent investment, finance and financial related data and policies, and to answer reporters’ questions.

The picture shows the press conference. (photo by Liu Jian)

Shou Xiaoli, deputy director and spokesperson of the State Council Information Office:

Good morning, ladies and gentlemen. Welcome to the press conference of the State Council Information Office. Today, we are very pleased to invite Mr. Liu Sushe, deputy director of the National Development and Reform Commission, Mr. Liao Min, vice minister of finance, and Mr. Xuan Changneng, deputy governor of the People’s Bank of China, and ask them to introduce the recent investment, finance and financial related data and policies and answer your concerns.

Now, first of all, please let Mr. Liu Sushe make an introduction.

Liu Sushe, Deputy Director of the National Development and Reform Commission:

Good morning, journalists and friends! I am very happy to attend today’s press conference. I would like to take this opportunity to thank journalists and friends for their concern and support for development and reform.

The picture shows Liu Sushe, deputy director of the National Development and Reform Commission. (photo by Xu Xiang)

Let me first introduce the recent investment situation. Since the beginning of this year, the National Development and Reform Commission, together with relevant parties, has conscientiously implemented the deployment of the Central Economic Work Conference and the Government Work Report, given full play to the driving amplification effect of government investment, actively supported social capital to participate in major project construction, and made efforts to expand effective investment. From January to February, the national fixed asset investment increased by 4.2% year-on-year, and the growth rate was 1.2 percentage points faster than last year. After deducting the investment in real estate development, the overall investment increased by 8.9%, achieving a smooth start. Mainly presents the following highlights:

First, the growth rate of manufacturing investment has accelerated. From January to February, the investment in manufacturing industry increased by 9.4%, 2.9 percentage points faster than last year and 5.2 percentage points higher than the total investment. The investment in technological transformation of manufacturing industry increased by 15.1%, and the growth rate was 5.7 percentage points higher than that of all manufacturing investment.

Second, the growth momentum of new kinetic energy investment is good. From January to February, investment in high-tech industries increased by 9.4%, including investment in high-tech manufacturing by 10% and investment in high-tech service by 7.8%. Among them, the investment in electronic and communication equipment manufacturing increased by 11.6%, and the investment in aviation, spacecraft and equipment manufacturing increased by 33.1%.

Third, the proportion of private investment in the overall investment has rebounded. From January to February, private investment accounted for 52.6% of the total investment, 2.2 percentage points higher than last year. Private investment increased by 0.4%, reversing the negative growth since the first five months of last year; Among them, private investment in manufacturing and infrastructure increased by 11.6% and 7.9% respectively.

Fourth, infrastructure investment has played an effective supporting role. From January to February, infrastructure investment increased by 6.3%, 0.4 percentage points faster than last year. Among them, the investment in water conservancy management increased by 13.7%, the investment in railway and road transportation increased by 27% and 8.3% respectively, and the policy benefits such as issuing additional national debt in 2023 are gradually emerging.

In the next step, the National Development and Reform Commission will make good use of policy tools such as investment in the central budget, ultra-long-term special government bonds and special bonds of local governments, speed up the review of special bond projects of local governments, and give full play to the guiding role of government investment; Implement a new mechanism of cooperation between government and social capital to mobilize the enthusiasm of private investment; Promote scientific and technological innovation and the development of emerging industries, accelerate the new urbanization based on people, and expand the space for effective investment in many ways; We will promote steady growth of investment and continuous optimization of the structure throughout the year, give full play to the key role of investment in optimizing the supply structure, and promote sustained economic recovery and long-term improvement. thank you

Shou Xiaoli:

Thank you, Deputy Director Liu Sushe, for your introduction. Next, please introduce Mr. Liao Min.

Vice Minister of Finance Liao Min:

Good morning, ladies and gentlemen, friends from old and new journalists. I am very happy to attend today’s press conference and take this opportunity to thank you for your long-term support and concern for financial work. Below, I will inform you about the financial operation from January to February from two aspects: revenue and expenditure. Generally speaking, the income continues to grow, while the expenditure is ahead.

The picture shows Vice Minister of Finance Liao Min. (photo by Xu Xiang)

First, the fiscal revenue continued to recover and started smoothly. From January to February this year, the national general public budget revenue was 4.46 trillion yuan, down 2.3% year-on-year, but it actually increased by about 2.5% according to comparable caliber. Let me explain here. You may have noticed that due to the measures taken to deal with the epidemic, in recent years, when comparing the economic data, the situation is often more complicated. In recent years, the fiscal revenue has also fluctuated greatly, which is mainly related to some measures and policies adopted by us to reduce taxes and fees in response to the epidemic. Therefore, according to the international common practice, some special and incomparable factors need to be deducted when making the year-on-year comparison, so as to reflect the trend change more objectively and truly.

Judging from the situation in January and February this year, the year-on-year decline in income was mainly disturbed by two special factors. On the one hand, the base has been raised. For example, in 2022, some small and medium-sized enterprises in manufacturing were put into storage in the first few months of 2023, which raised the income base in 2023. On the other hand, the tax reduction policy introduced in the middle of last year has an impact on this year’s revenue reduction. For example, in August 2023, the stamp duty on securities transactions was halved, which will make the low tax rate implemented in the first eight months of this year correspond to the relatively high tax rate in the same period last year. Another example is that in mid-2023, the policy of adding and deducting the value-added tax of advanced manufacturing enterprises and increasing the pre-tax deduction ratio of R&D expenses of enterprises in some industries also belongs to this situation. This has lowered the tax increase in January and February this year. Therefore, after deducting the above-mentioned special factors, the national general public budget revenue increased by about 2.5% in January and February under comparable caliber. In fact, it has achieved a recovery growth, which is basically consistent with the steady and positive trend of the macro economy.

Second, the fiscal expenditure is reflected in the front, and the progress is accelerated. From January to February, the national general public budget expenditure increased by 6.7% year-on-year, accounting for 15.3% of the annual budget. The expenditure progress was the fastest in the same period of the past five years, among which the expenditure in social security and employment, education, urban and rural communities, agriculture, forestry, water and transportation increased rapidly, and the expenditure on key projects was effectively guaranteed. Fiscal expenditure has both aggregate effect and structural effect, so we believe it will play a positive role in promoting macroeconomic recovery, promoting economic restructuring and promoting social capital investment.

In the next step, the Ministry of Finance will implement the spirit of the Central Economic Work Conference and the National "Two Sessions", implement a proactive fiscal policy, combine fiscal policy tools such as deficit, special debt, extra-long special national debt and tax incentives, and at the same time strengthen coordination with policies such as currency, employment, industry, region, science and technology, and environmental protection, so as to ensure concerted efforts and joint efforts, and promote the effective improvement of quality and reasonable growth of the economy.

Looking forward to the whole year, I believe that with the further amplification of the combined effects of various policies, it will not only consolidate and enhance the positive trend of macroeconomic recovery in the current period, but also promote the supply-side structural reform, technological progress and the development of new quality productivity, which will also help China’s economy maintain a medium-and long-term growth trend and build a solid foundation for fiscal sustainability. Thank you.

Shou Xiaoli:

Thank you, Vice Minister Liao Min, for your introduction. Next, please let Mr. Xuan Changneng make an introduction.

Xuan Changneng, Vice Governor of China People’s Bank:

Hello, media friends! Thank you for your long-term concern and support for the financial sector. Since the beginning of this year, the People’s Bank of China has stepped up macro-policy regulation and control, and the prudent monetary policy is flexible, moderate, accurate and effective, focusing on expanding domestic demand, boosting confidence and creating a suitable monetary and financial environment for economic recovery.

The picture shows Xuan Changneng, deputy governor of China People’s Bank. (photo by Xu Xiang)

In terms of the total amount, we will maintain a reasonable growth and steady pace of money, credit and financing. While flexibly manipulating the medium-term loan facility (MLF) and open market operation, the RRR was lowered by 0.5 percentage points in the beginning of the year, and the long-term liquidity was released at one time, exceeding 1 trillion yuan, which fully guaranteed the liquidity supply in terms of quantity. At the same time, pay attention to guiding financial institutions to strengthen the balanced loan supply, prevent credit fluctuations from increasing and "opening the door" excessively, and provide stable and sustainable financial support for the economy.

Structurally, continuously optimize the credit structure and pay attention to improving efficiency. Scientific and technological innovation, advanced manufacturing, and green development are all important areas that reflect high-quality development. The People’s Bank of China continues to implement refinancing to support carbon emission reduction. The 500 billion yuan mortgage supplementary loan (PSL) newly added in December last year has also been fully distributed, and scientific and technological innovation and technological transformation refinancing will be set up to continuously improve the efficiency of promoting economic restructuring, transformation and upgrading, and conversion of old and new kinetic energy, and do a good job in the "five major articles" of finance. At the same time, increase efforts to revitalize existing financial resources, promote effective investment, and help resolve excess capacity.

In terms of price, the cost of comprehensive social financing will be steadily reduced and the RMB exchange rate will be kept stable. Faced with the constraints of domestic bank deposit and loan spreads and domestic and foreign spreads, the People’s Bank of China has continued to show the effect of reducing costs through policy mix. Guided by the previous policies of lowering the deposit interest rate, and lowering the interest rate of re-lending and re-discounting to support agriculture, the quoted interest rate (LPR) of loans over five years in February dropped by 0.25 percentage points, the largest decline since the LPR reform, effectively driving the continuous decline of loan interest rates. At the same time, it not only insists that the market plays a decisive role in the formation of the exchange rate, but also plays a good role in the adjustment of the exchange rate to the macro-economy and the international balance of payments, and strengthens the expected guidance to prevent the risk of exchange rate overshoot, thus maintaining the basic stability of the RMB exchange rate under the complicated situation.

The monetary policy has achieved remarkable results, and the quality and efficiency of financial support for the real economy have continued to improve. There are several aspects: first, the total amount has increased reasonably. At the end of February, M2, social financing scale and RMB loans maintained rapid growth of 8.7%, 9.0% and 10.1% respectively, which was in line with market expectations. Second, the support for the "five big articles" has increased. At the end of February, small and micro loans of Pratt & Whitney increased by 23.1% year-on-year, medium and long-term loans of manufacturing industry and high-tech manufacturing industry increased by 28.3% and 26.5% year-on-year, respectively, and financial resources flowed more to key areas such as high-quality development. Third, the financing cost is reduced and the exchange rate is stable. In February, the weighted average interest rate of corporate loans was 3.72%, down by 0.13 percentage points year-on-year. Since February, the exchange rate of RMB against the US dollar has been stable around 7.2 yuan, taking into account the internal and external balance.

China’s monetary policy has sufficient policy space and abundant tool reserves, and the statutory deposit reserve ratio still has room for decline. The downward deposit cost and the shift of monetary policy in major economies are conducive to broadening the autonomy of interest rate policy operation, and the establishment of scientific and technological innovation and technological transformation refinancing will help accelerate the development of high-end manufacturing and digital economy. In the next stage, a prudent monetary policy will continue to be flexible, moderate, accurate and effective, reasonably grasp the relationship between bonds and credit, maintain reasonable and abundant liquidity, promote the steady decline of corporate financing and residents’ credit costs, continue to do a good job in the "five major articles", intensify efforts to revitalize existing financial resources, maintain the basic stability of RMB exchange rate at a reasonable and balanced level, and balance the relationship between short-term and long-term, steady growth and risk prevention, internal balance and external balance. Thank you!

Shou Xiaoli:

Thank you, Vice President Xuan Changneng, for your introduction. Let’s start asking questions. Please inform your news organization before asking questions.

21st century business herald reporter:

Last year, China issued another 1 trillion yuan of national debt. What is the current progress? This year’s "Government Work Report" proposes to issue ultra-long-term special government bonds. As the competent investment department, how will the National Development and Reform Commission promote related work and improve the efficiency of government investment? Thank you.

Liu Sushe:

Thank you for your question. I want to answer it from three aspects.

First, about the issuance of government bonds in 2023. As we all know, last year, 1 trillion yuan of treasury bonds were issued to specifically support post-disaster recovery and reconstruction in North China, focusing on Beijing, Tianjin and Hebei, and to enhance disaster prevention, mitigation and relief capabilities. In order to do this work well, the National Development and Reform Commission, in accordance with the deployment of the CPC Central Committee and the State Council, quickly established a working mechanism with relevant departments to organize and promote project screening, factor guarantee, construction and other work. By February this year, the Development and Reform Commission had issued a list of 1 trillion yuan of additional treasury bonds in three batches, and all the funds for additional treasury bonds had been implemented to 15,000 specific projects.

From the perspective of support, more than half of the 1 trillion yuan of additional national debt is used for the construction of related water conservancy facilities such as flood control and drainage, more than 200 billion yuan is used for post-disaster reconstruction in Beijing, Tianjin and Hebei, and the rest is mainly used for the improvement of natural disaster emergency response capacity and the construction of comprehensive prevention and control systems such as forest fires. Project construction in these areas will effectively restore and improve the production and living conditions in disaster areas, significantly enhance the ability to prevent and respond to natural disasters, and objectively promote the steady growth of infrastructure investment.

Judging from the project progress. At present, the Development and Reform Commission has established a scheduling mechanism for the issuance of treasury bonds, and has begun to comprehensively schedule the progress of the projects. Judging from the current situation, the construction of related projects is progressing in an orderly manner. For example, the project operating rates in Beijing and Hebei Province have reached 48% and 45% respectively. We will urge local governments to speed up the work progress, carry out on-the-spot supervision with relevant departments, push all these projects to start in the first half of this year, and form more physical workload during the year. In particular, we will urge some post-disaster reconstruction projects to be completed and put into use before the flood season this year, so as to truly turn all projects into popular projects, high-quality projects and clean projects.

The second aspect is about ultra-long-term special national debt.

The "Government Work Report" proposes that from this year, it is planned to issue ultra-long-term special government bonds for several consecutive years, specifically for the implementation of major national strategies and the construction of security capabilities in key areas. In accordance with the decision-making arrangements of the CPC Central Committee and the State Council, the Development and Reform Commission, together with relevant departments, will study and formulate specific plans, refine and improve support areas, and further clarify work requirements. The overall consideration is to coordinate "hard investment" and "soft construction", concentrate on solving some major problems in the process of building a strong country and national rejuvenation, and lay a solid foundation for realizing the goal of the second century as scheduled.

In the next step, the Development and Reform Commission will quickly organize and implement the plan together with relevant parties after it is approved by the CPC Central Committee and the State Council. On the one hand, focus on key areas such as scientific and technological innovation, urban-rural integration development, regional coordinated development, food and energy resources security, and high-quality population development, organize project planning and storage, preliminary work and construction implementation, and support a number of high-quality projects. On the other hand, we will promptly promote the introduction and implementation of relevant supporting policies and measures, break down deep-seated obstacles through institutional and institutional reforms, and form synergies with major project construction to ensure the high-quality landing of various tasks.

The third aspect is about improving the efficiency of government investment.

The Central Economic Work Conference proposed that to expand effective investment, in addition to the 1 trillion yuan of treasury bonds issued last year, 1 trillion yuan of ultra-long-term special treasury bonds this year, 700 billion yuan of investment in the central budget this year, and 3.9 trillion yuan of local government special bonds, the total scale of these funds exceeds 6 trillion yuan. Therefore, improving the efficiency of government investment and giving full play to the leading role of government investment in the whole society is a key and key point of investment work this year.

We consider that we should focus on the following aspects this year: First, do a good job in the preliminary work. Urge relevant parties to strengthen the project reserve, strengthen the preliminary demonstration such as feasibility study, and improve the scientific nature of investment decision. At the same time, coordinate and increase the protection of land use, environmental impact assessment and other factors, and actively implement supporting financing. The second is to optimize the investment field. Adjust and optimize the investment structure in the central budget, appropriately expand the scope of local government special bonds and use them as capital, and at the same time strengthen the overall connection and dislocation arrangement of various government investments to form the overall synergy of various funds. The third is to strengthen the whole chain management. We will further improve various regulations, build a management mechanism covering the whole cycle and chain of government investment projects, such as planning and reserve, preliminary work, investment decision-making, construction and operation, supervision and inspection, and promote the improvement of investment benefits with refined management. Thank you.

Economic Daily reporter:

Excuse me, what are the main areas of new credit in the first two months of 2024? What are the highlights? Thank you.

Xuan Changneng:

Thank you for your question. Since the beginning of this year, the People’s Bank of China has given full play to the dual functions of monetary policy tools, and guided financial institutions to increase their support for key areas and weak links of the national economy, such as inclusive finance, scientific and technological innovation, manufacturing, infrastructure and privatization, on the basis of strengthening credit support for the real economy.

In terms of the total amount, the total amount of credit continued to maintain steady and rapid growth. At the end of February, the balance of RMB loans of financial institutions was 243.96 trillion yuan, a year-on-year increase of 10.1%. In the first two months, new loans amounted to 6.37 trillion yuan.

From the structural point of view, the credit structure has been continuously optimized. There are the following highlights:

First, credit growth in key industries of the national economy remained high. At the end of February, the balance of medium and long-term loans in manufacturing industry increased by 28.3% year-on-year. As mentioned earlier, the balance of medium and long-term loans in high-tech manufacturing industry increased by 26.5% year-on-year. Medium-and long-term loans in infrastructure industry increased by 14.0% year-on-year, and the balance of loans for high-tech, "specialized and innovative" and small and medium-sized science and technology enterprises increased by 14.2%, 18.5% and 21.4% respectively, which were significantly higher than the growth rate of various loans by 10.1% in the same period, and the proportion of loans further increased.

Second, more financial resources flow to the weak links of the national economy. At the end of February, the balance of Pratt & Whitney small and micro loans increased by 23.1% year-on-year; In the first two months, it increased by 1 trillion yuan, an increase of 110.2 billion yuan. At the end of February, the balance of full-caliber agriculture-related loans increased by 14.5% year-on-year, 4.4 percentage points higher than the growth rate of various loans in the same period; In the first two months, it increased by 2.53 trillion yuan, an increase of 170.8 billion yuan. Loans from the private economy are on the increase. At the end of February, the balance of private economy loans increased by 11.6% year-on-year, 1.5 percentage points higher than the growth rate of various loans in the same period.

Thank you!

Nanfang Daily Southern+Reporter:

According to the Government Work Report, deficit ratio plans to make arrangements according to 3%, and "the proactive fiscal policy should be moderately strengthened, improving quality and increasing efficiency". Please tell us about the specific deployment of moderate fiscal policy. How do these measures affect the overall financial debt burden? Thank you.

Liao Min:

Thank you for your question. Your question is actually how to look at the balance between fiscal policy supporting economic growth and maintaining the sustainability of fiscal operation.

Macro-control requires the organic combination and joint action of various tools. From the perspective of fiscal policy, this year is to implement the work requirements of "moderately increasing strength, improving quality and increasing efficiency" put forward by the Central Economic Work Conference and the National People’s Congress. What you care about is the moderate strength, which is not only reflected in the deficit policy, but also includes various policy tools such as special debt, ultra-long-term special national debt, and tax and fee concessions.

This year, according to the arrangement of 3%, the deficit in deficit ratio is 4.06 trillion yuan, which is 180 billion yuan higher than the budget at the beginning of last year. By coordinating all kinds of financial resources, the fiscal expenditure has reached 28.5 trillion yuan, which is 1.1 trillion yuan higher than last year, maintaining a high expenditure intensity. Considering that 1 trillion yuan of treasury bonds were issued in the fourth quarter of last year, most of them were used this year. In fact, the expenditure effect will be more reflected in this year. In addition, this year, 3.9 trillion yuan of local government special bonds will be arranged, an increase of 100 billion yuan over last year, and 1 trillion yuan of ultra-long-term special government bonds will be arranged. Together with the implementation of structural tax reduction and fee reduction policies, all these policies will provide necessary and strong support for achieving this year’s economic and social development goals.

I am very happy to tell you a new situation. Recently, we learned that you are very concerned about the bond issuance of the China government. According to the overall financial plan, these government bonds are being issued one after another. Here, we can see that China government bonds have been widely welcomed in the market. In the past few months, overseas investors have increased their holdings for several months, making them one of the best performing government bonds in Asia.

Of course, while supporting economic growth, you were just concerned about financial sustainability. The financial department has always insisted on coordinating steady growth and risk prevention, coordinating needs and possibilities, scientifically and rationally arranging deficit levels and government debt levels, and ensuring medium-and long-term fiscal sustainability. In the past few years, even during the epidemic, our deficit ratio has remained relatively stable, which is a prominent feature among major economies. From 2018 to 2023, the overall fiscal deficit ratio will be controlled within 3%. In 2024, deficit ratio will be arranged at 3%, which is also determined by comprehensive consideration of various factors. Generally speaking, we believe that the level of government debt in China is moderate, which not only meets the objective needs of promoting economic stability, but also helps to achieve medium-and long-term fiscal sustainability.

Thank you all.

CCTV reporter from the Central Radio and Television General Station:

In recent years, China has continuously increased investment in social and people’s livelihood to enhance people’s well-being. What work have we focused on in the field of social and people’s livelihood? How to promote the filling of shortcomings and weaknesses in the field of social and people’s livelihood and further enhance people’s livelihood security? Thank you.

Liu Sushe:

I’ll answer this question. People’s livelihood is the foundation of our party’s governance, the foundation of people’s happiness and the source of social harmony. The National Development and Reform Commission has implemented the decision-making arrangements of the CPC Central Committee and the State Council, worked with relevant departments to formulate and dynamically adjust the national basic public service standards. Since the Tenth Five-Year Plan, it has arranged a total investment of 219.6 billion yuan in the central budget to strengthen infrastructure construction in the fields of education, health care, employment, cultural tourism, social services, national fitness, and "one old and one small", and strived to fill the shortcomings and weaknesses in the social field. I introduce it from several aspects:

The first is to strengthen the construction of educational infrastructure. Mainly to improve the conditions of compulsory education schools and expand the supply of basic education degrees. Support vocational colleges and application-oriented undergraduate colleges to build production-education integration training bases. At the same time, we will continue to improve the running ability of central universities, universities in the central and western regions, high-quality medical and normal universities, and strengthen connotative development.

The second is to build a high-quality and efficient medical and health service system. Focus on the problem that it is difficult and expensive for people to see a doctor, actively support the high-quality development of public hospitals, strengthen health services for women and children, and promote the inheritance and innovation of Chinese medicine. Build a number of national regional medical centers to promote the expansion of high-quality medical resources and regional balanced layout. Actively and steadily promote the construction of "emergency and emergency" public infrastructure and build a strong public health system.

The third is to support the development of social services and national fitness. Continue to promote the construction of service facilities for social welfare, disabled people and retired military personnel, and fill in the shortcomings of funeral facilities. Support the construction of sports parks and social football venues, and improve the facilities and conditions of national fitness venues.

The fourth is to improve the service ability of "one old and one small". We will speed up the construction of an old-age care service system that is coordinated with community organizations at home and combines medical care with health care. We have issued the Opinions on Developing a Silver-haired Economy to Improve the Well-being of the Elderly, which has promoted the development and growth of the care service system, and carried out pilot projects for the construction of comprehensive care service centers in some cities.

The fifth is to continuously improve people’s quality of life. It issued the protection plan for the construction of the Yellow River National Cultural Park, promoted the construction of the Grand Canal National Cultural Park, and supported the construction of cultural heritage protection projects such as Sanxingdui and Luoyang City in Han and Wei Dynasties. The "Implementation Plan for the Construction of Embedded Service Facilities in Urban Communities" was issued to promote the extension of "one old and one small" inclusive services to the community.

At present, there are still many shortcomings and weaknesses in the field of people’s livelihood, which is far from the expectations of society and the needs of the people. In the next step, in accordance with the decision-making arrangements of the CPC Central Committee and the State Council, we will persist in safeguarding and improving people’s livelihood in development, constantly improve the public service system and improve people’s quality of life. The key point is to work with relevant departments to guide all localities to implement the 2023 version of the national basic public service standards, persist in doing their best and do what they can, and firmly grasp the basic bottom line of people’s livelihood. At the same time, we will continue to increase investment in people’s livelihood, give full play to the guiding and inciting role of investment in the central budget, make good use of other funding channels, actively promote the shortcomings, strengths and weaknesses and quality improvement of key people’s livelihood areas, promote the improvement of social livelihood policies, and adopt more measures to benefit people’s livelihood and warm people’s hearts, and continuously enhance the people’s sense of acquisition, happiness and security. Thank you.

The Paper reporter:

In the first two months of this year, China’s private investment turned from negative to positive. How do you view the current development trend of private investment and what measures will be taken in the next stage to further stimulate private investment? Thank you.

Liu Sushe:

Private investment is a very important foundation for the development of private economy, and it is also a "barometer" of the activity of private economy. The National Development and Reform Commission has implemented the decision-making arrangements of the CPC Central Committee and the State Council, and adopted a series of measures to encourage, support and promote the development of private investment. Since last year, we have promulgated 17 policies and measures to promote private investment, promoted the solution of the problems and demands of private enterprises, established a new mechanism for cooperation between the government and social capital, publicly introduced major projects to the society, attracted the participation of private capital, and vigorously created a good environment for the development of private investment. According to the platform of private capital promotion projects, as of February 29, there were 1612 projects attracting private capital, with a total investment of more than 2 trillion yuan. With the implementation of a series of policies, the growth rate of private investment in the country gradually stabilized in the last few months of last year. From January to February this year, private investment increased by 0.4% year-on-year, and the growth rate turned from negative to positive, which can be said to show a good development trend.

In the next step, the National Development and Reform Commission will, in accordance with the decision-making arrangements of the CPC Central Committee and the State Council, promote the development of private investment with greater efforts and more practical measures, focus on stabilizing and expanding private investment, and strive to maintain a steady growth trend of private investment.

First, improve the institutional environment so that private enterprises can "feel at ease". At present, the law on the promotion of private economy is being studied and drafted to provide legal protection for better promoting the development of private economy and create a stable and predictable institutional environment for private investment.

Second, broaden the investment space and let private enterprises "have some investment". It is mainly to promote local and related industries to implement the new mechanism of cooperation between government and social capital, manage and make good use of private investment guidance projects in central budget investment, and encourage private enterprises to participate in the construction and operation of infrastructure projects to the greatest extent.

Third, strengthen the factor guarantee, so that private enterprises can "invest well". We will build and make good use of the national key private investment project library, strengthen the guarantee of financing and land use for private investment projects through mechanisms such as investment and loan linkage and land use guarantee for major projects, and promote the implementation of more private investment projects. At the same time, it is necessary to strengthen the evaluation and scheduling of promoting private investment, fully mobilize the enthusiasm of local governments to encourage the development of private investment, and promote the formation of joint efforts in all aspects. Thank you.

China Daily reporter:

Employment is the foundation of people’s livelihood, and all sectors of society are very concerned about it. What measures does the Ministry of Finance take to support the employment of key people?

Liao Min:

Thank you for your question. The CPC Central Committee and the State Council attached great importance to the employment work, and emphasized the overall consideration of raising stable employment to a strategic level. As we all know, only when there is employment can there be income, only when there is income can there be consumption, and only when there is consumption can there be domestic demand. The Ministry of Finance continues to base itself on its financial functions, promote the implementation of the employment priority strategy, and strengthen employment support for key groups such as college graduates, migrant workers and people with employment difficulties. This year, we will focus on the following aspects to do relevant work:

First, give more prominence to the employment priority orientation. Persist in taking stabilizing and expanding employment as the priority goal of economic and social development, and pay more attention to promoting employment when formulating fiscal and taxation policies. In 2024, the central government allocated 66.7 billion yuan of employment subsidy funds to support the implementation of employment and entrepreneurship support policies.

The second is to support business entities to stabilize jobs. It is mainly to implement the structural tax reduction and fee reduction policy, continue to implement the phased policy of reducing unemployment and industrial injury insurance rates, and strive to reduce the cost burden of business entities. We will continue to implement the policy of returning unemployment insurance to stable posts, and return the unemployment insurance premiums actually paid in the previous year in proportion to enterprises that do not lay off employees or reduce employees, so as to support enterprises to stabilize their posts and absorb employment.

The third is to help play the role of entrepreneurship in promoting employment. The financial department will give discount loans to eligible key groups and small and micro enterprises that have absorbed their employment. We have made an internal calculation to guide government financing guarantee institutions to increase their inclination to labor-intensive enterprises. It is estimated that in 2024, 1.3 trillion yuan of new loans will be mobilized, more than 12 million jobs will be stabilized, and more than 600,000 new jobs will be created. Support colleges and universities to strengthen innovation and entrepreneurship education and enhance college students’ innovation and entrepreneurship ability. Business start-up subsidies will be given to qualified college graduates and people with employment difficulties who start small and micro enterprises for the first time or engage in self-employment.

The fourth is to continue to focus on the employment of key groups. Encourage enterprises to increase recruitment efforts, give social insurance subsidies to those who attract employment from key groups, and give employment internship subsidies to those who recruit qualified college graduates. We will tap more employment opportunities and jobs at the grassroots level, and implement the western plan, the "three supports and one support" plan, the "special post plan" and the special plan for college students’ village doctors. The financial department will give support to encourage and guide college graduates to work at the grassroots level. At the same time, the tuition fees of eligible college graduates who are employed in hard and remote areas will be compensated. In addition, we will continue to provide classified employment assistance to the poverty-stricken population, rural low-income population and the disabled, and consolidate the results of poverty alleviation.

These measures are real, and it is expected that with the gradual implementation in place, they will play a positive role in promoting employment this year and make contributions to the financial sector. Thank you.

Xinhua News Agency China Economic Information Agency reporter:

At the end of February, data such as social financing scale and M2 have been released. Excuse me, does the growth rate of these indicators match the current economic situation in China? How should we view the performance of these indicators? Thank you.

Xuan Changneng:

Thank you for your question. Both the Central Economic Work Conference and the Government Work Report emphasized that monetary policy should be steady, the scale of social financing should be maintained, and the money supply should match the expected targets of economic growth and price level. The expected target for this year is GDP growth of about 5% and consumer price increase of about 3%, which means that the expected target of nominal economic growth is about 8%. At the end of February, the scale of social financing and M2 of broad money increased by 9% and 8.7% respectively, which was not low on the whole, which matched the expected growth target mentioned above and still reflected the countercyclical adjustment of monetary policy. These data can be analyzed from the following angles:

First, the base was relatively high in the same period last year. At the beginning of last year, China was still in the initial stage of epidemic prevention and control, and the domestic economy was greatly affected. The macro-policy was put forward, the response was significantly increased, and the financial indicators grew rapidly. The growth rates of M2 and social financing reached 12.9% and 9.9% at the end of February last year, respectively, of which the growth rate of M2 increased by 3.7 percentage points compared with the same period of the previous year. At present, the national economy continues to improve, the growth rate of industrial production and import and export exceeds expectations, and consumption and investment have steadily picked up. The total amount of financing this year has continued to increase by about 9% on the basis of last year’s high base, which is actually relatively high.

Second, pay more attention to the steady pace of credit supply. In the first quarter of last year, loans were increased, which supported the accelerated economic recovery after the epidemic. Since the beginning of this year, the overall economic recovery has improved. Apart from paying attention to the total amount, we have also paid more attention to guiding the smooth credit supply of financial institutions to avoid the "good start" rushing too hard, resulting in insufficient stamina. Judging from the financial data of these two months, the previous guidance has produced results, and it is expected that the financial support for the real economy will be more sustainable this year.

Third, the efficiency of financial resource allocation has improved. The Central Economic Work Conference emphasized the need to revitalize the stock and improve efficiency, while the Central Financial Work Conference emphasized the need to revitalize the financial resources that were occupied inefficiently. The "Government Work Report" emphasizes the need to avoid idling of funds. At the end of February, the balance of loans reached 244 trillion yuan, mainly reflecting the M2 balance of deposits of enterprises and residents as high as 300 trillion yuan. These stock resources are at the disposal of enterprises and residents and can be used to support economic development. At present, the scale of China’s money and credit stock is large enough. With the adjustment of economic structure, transformation and upgrading, and the improvement of the efficiency of the conversion of old and new kinetic energy, the use efficiency of stock resources will be significantly improved, which can better support the high-quality economic development. At the same growth rate, financial support for the real economy is still stable.

Generally speaking, in the stage of economic structure transformation and upgrading and high-quality development, we should not only look at the increment and growth rate of financial data, but also pay attention to the improvement of stock quality and efficiency. At the same time, there is a close relationship between financial tightness and the quality of economic growth. A moderately tight financial environment is conducive to investing financial resources in more efficient industries and enterprises. The People’s Bank of China will guide financial institutions to actively tap credit demand, scientifically formulate annual credit arrangements, revitalize existing financial resources, and at the same time support the accelerated development of direct financing to maintain a reasonable increase in the total amount of money, credit and financing.

Thank you.

China Financial News reporter:

Creating a market-oriented, legalized and internationalized first-class business environment is the key word in this year’s Government Work Report. In recent years, what measures has the Ministry of Finance taken to improve the business environment, especially to facilitate foreign-funded enterprises and products to enter the China market and participate in the competition on an equal footing? What are the next considerations? Thank you.

Liao Min:

Thank you for your question. Optimizing the business environment is the key to cultivate and stimulate market vitality and enhance the endogenous power of development. A few days ago, the National People’s Congress (NPC) and the National People’s Congress (NPC) have closed, and relevant macroeconomic policies, objectives and measures have been released. At the same time, it continues to release a clear signal of expanding high-level opening-up, demonstrating China’s belief and determination to continuously improve the business environment. Recently, the General Office of the State Council has just issued the Action Plan for Firmly Promoting High-level Opening-up and Greater Attraction and Utilization of Foreign Capital, expecting more measures.

We know that for Chinese-funded enterprises, China’s market with a population of 1.4 billion is a domestic market, but for foreign-funded enterprises, China’s market with a population of 1.4 billion is one of its most important international markets. Therefore, it is of great significance for China enterprises to "go global" and for global investors to "come in" to promote the implementation of high-level institutional opening. China’s high-quality development and the cultivation of new-quality productive forces will increasingly turn into opportunities shared by the whole world, and the open China market will also provide more new opportunities for world development.

In recent years, the Ministry of Finance has actively participated in building a first-class business environment and made some positive progress. Here is a report for everyone: First, we will continue to reduce the overall level of tariffs. At present, the overall tariff level has been reduced to 7.3%, which is at a low level in the world. Second, actively participate in international tax reform, multilateral and bilateral financial exchanges and cooperation, learn from international best practices, and share China’s experience in reform and opening up. Third, in government procurement, we treat the products and services produced by domestic and foreign-funded enterprises in China equally, and clean up and rectify the regulations and practices that treat domestic and foreign-funded enterprises differently. Fourth, pay attention to communication with foreign investors and enterprises, and actively solve their practical difficulties and problems in government procurement, enterprise-related taxes and fees, etc. We have a special mechanism to investigate and deal with the information in time after receiving it. Fifth, mutual recognition of accounting standards and auditing standards has been achieved with many countries, supporting transnational investment, trade and financial activities. Sixth, we will increase financial support for improving the protection of intellectual property rights, support the examination of patents and trademarks, promote the use of intellectual property rights, and strengthen intellectual property protection throughout the chain.

The business environment is not the best, only better. In the next step, we will continue to improve the protection mechanism of foreign investment rights and interests, reduce the negative list of foreign investment access, fully protect the national treatment of foreign-invested enterprises, continuously strengthen the protection of intellectual property rights, break down the barriers that restrict the flow of innovation factors, accelerate the construction of a unified big market, and provide better protection for enterprises from all over the world to invest in China. Thank you all.

American International Market News Agency reporter:

The central bank’s creditor’s rights to deposit-taking financial institutions have reached a record high. The balance sheet of the central bank has expanded by more than 5 trillion yuan since last August, but the credit growth rate is relatively slow. How to explain this difference? Does finance need to continue to reduce leverage in view of the idling of funds?

Xuan Changneng:

Thank you for your question. You actually asked two questions. The first is about the central bank’s balance sheet. According to the Law of the People’s Bank of China, the statutory goal of monetary policy is to maintain the stability of the currency value and promote economic growth. In recent years, the requirement of prudent monetary policy is to keep the liquidity reasonable and abundant, and to match the scale of social financing and money supply with the expected goals of economic growth and price level, so as to achieve the statutory goals. When the central bank achieves its goal, it will comprehensively use a variety of monetary policy tools, including deposit reserve ratio, refinancing, open market operations and so on. Among them, the RRR cut will reduce the demand for reserves, release long-term liquidity, and have a substitution effect on central bank funds; The central bank will increase the creditor’s rights of deposit-taking financial institutions and will actively put in liquidity. If the RRR is lowered more, the central bank’s balance sheet will expand less; If the RRR cut is less, the central bank’s balance sheet will expand a little. Which tool to use depends on the needs of different situations, and the quantity will be more or less. Overall, it is to create a good monetary and financial environment.

The balance sheet changes of foreign central banks are also very concerned, especially QE and QT of major foreign central banks, because their statutory deposit reserve ratio is almost zero, and there is little room for adjustment. More attention is paid to adjusting liquidity by actively expanding and contracting the table. The average level of China’s deposit reserve ratio is still 7%, which is still an important means of liquidity. In addition, the balance sheet of China’s central bank is about 45 trillion yuan, and the loan balance is 244 trillion yuan, the ratio of which is close to 1: 5. Compared with foreign central banks, China’s monetary policy transmission is effective, and the current credit growth rate is also maintained at a reasonable level, which is conducive to achieving the statutory goals of the central bank and supporting high-quality economic development. As mentioned by foreign central banks just now, open market operation is the main channel to regulate liquidity, that is, the main means to expand and shrink the table.

The second question is about the idling of funds. All parties are concerned about this issue, and we are also strengthening monitoring. We will continue to pay close attention to the transfer and lending of corporate loans, cooperate with relevant departments, improve the management assessment mechanism, and promote the efficiency of capital use. At present, the effect of preventing funds from idling has already appeared. As enterprises standardize the use of funds, the growth rate of total financing may be lower than before, but the actual support for high-quality economic development will be even greater.

Thank you.

Shou Xiaoli:

Due to the time, the last two questions.

The picture shows Shou Xiaoli, deputy director and spokesperson of the State Council Information Office, inviting reporters to ask questions. (photo by Yan Haijun)

Reuters reporter:

We are concerned that the central bank recently proposed to maintain price stability and promote a moderate price recovery as an important consideration of monetary policy. I wonder what specific policies the central bank will have in the next step to boost domestic demand, guard against possible deflation risks and ensure the realization of this year’s economic growth target? Thank you.

Xuan Changneng:

Regarding the price issue, I will make some explanations and explanations from the perspective of monetary policy.

From a quantitative point of view, to keep the scale of social financing and money supply in line with the expected targets of economic growth and price level, it implies the consideration of adjusting the price level through monetary policy. The annual target of monetary policy has taken into account the maintenance of price stability and the promotion of moderate price recovery. The expected target this year is GDP growth of about 5% and consumer price increase of about 3%. If the scale of social financing and M2 growth rate are not less than 8%, the expected target of 3% price level has been considered.

From the price point of view, by deepening the interest rate marketization reform, guiding banks to lower the deposit interest rate, and promoting the loan market quotation rate (LPR) to continue to decline, all these are conducive to reducing the comprehensive financing cost of society, stimulating potential consumption, expanding effective investment, maintaining price stability, and promoting a moderate price recovery.

In the next step, the People’s Bank of China will guide financial institutions to scientifically assess risks, curb the blind expansion of industries with overcapacity, meet the demand for reasonable consumption financing, and improve the quality and efficiency of financial services by optimizing the credit structure. At the same time, strengthen policy coordination, support the increase of residents’ income, expand employment, improve the social security system, thoroughly implement the consumption-driven strategy, focus on expanding domestic demand, promote the matching of supply and demand, and promote a virtuous circle of the economy. All these have an important supporting role in the moderate recovery of the price level.

thank you

Southern Metropolis Daily reporter:

We noticed that the investment in equipment manufacturing and high-tech manufacturing in January and February was significantly higher than the overall manufacturing investment growth rate. What is the development trend of related fields? How to cultivate and expand strategic emerging industries in the next step? Thank you.

Liu Sushe:

Just now, I mentioned that in January and February this year, the growth rate of manufacturing investment accelerated, up 9.4% year-on-year, and the growth rate was 5.2 percentage points higher than the overall investment, which became an important support for stable investment and stable economy. Among them, investment in equipment manufacturing industry increased by 14.3% year-on-year, and investment in high-tech manufacturing industry increased by 10%, both faster than the growth rate of overall manufacturing investment. These data show that the pace of transformation and upgrading of China’s manufacturing industry is accelerating, the structure is continuously optimized, and industries with high technology, high efficiency and high quality are showing a good trend of development.

The rapid growth of investment in equipment and high-tech manufacturing industry is behind the investment of "real money and silver". Being able to make such investment decisions not only has the support and guidance of national policies, but also reflects the confidence of enterprises in future development. In terms of supporting policies, the National Development and Reform Commission issued and implemented the Guiding Catalogue of Industrial Structure Adjustment (2024 edition), organized major technical equipment research projects and actions to enhance the core competitiveness of manufacturing industry, focused on the shortcomings of industrial development, increased support for technological innovation, and promoted strategic emerging industrial clusters to become better and stronger. From the production situation, from January to February, the added value of equipment manufacturing industry above designated size increased by 8.6%, and the added value of high-tech manufacturing industry increased by 7.5%, which was 1.6 and 0.5 percentage points higher than the total industrial added value respectively. At the same time, the output of service robots and 3D printing equipment increased by 22.2% and 49.5% respectively. From the perspective of economic benefits, the profit of China’s equipment manufacturing industry increased by 4.1% in 2023, 2.4 percentage points faster than that in 2022, which provided strong support for expanding production and investment in related fields.

In the next step, our Committee will conscientiously implement the decision-making arrangements of the CPC Central Committee and the State Council, accelerate the cultivation and development of new quality productive forces, and vigorously promote the construction of a modern industrial system. We will strengthen the dominant position of enterprise innovation, lead industrial innovation with scientific and technological innovation, and promote the formation of an enterprise echelon with leading enterprises leading innovation, rapid growth of small and medium-sized enterprises and emerging start-ups; Create a highland for industrial agglomeration and development, promote the development of strategic emerging industries, and create a number of new regional economic growth poles with reasonable structure, unique characteristics and complementary advantages; Optimize the ecology of industrial innovation and development, improve the working mechanism of talent training, introduction, use and rational flow, innovate diversified capital supply, and actively integrate into the global innovation ecology. Through these measures, we will accelerate the development of strategic emerging industries, constantly shape new kinetic energy and new advantages for development, and promote high-quality economic development. Thank you.

Shou Xiaoli:

Thank you, three publishers, and thank you, journalists and friends. That’s all for today’s press conference. Goodbye!

It will last for another week! Jiande people should be careful when they go out. There is news from the long-lost sunshine …

It was rainy on the 24th.

Wet and cold.

It’s really uncomfortable


Jiande is finally out of the sun!

Source: Nan Mu does not eat onions, ginger and garlic

Since entering the late period,

The weather continues to rain and snow.

The temperature is also falling.

When will this cold weather end?

Judging from the latest situation

This wave of rain has not been completely "finished"

Cold air supplements the south

Next week

Rainy+wet and cold continuous online

The rain has rested today.

The temperature has picked up.

Rain began to come back after midnight.

There was light rain during the day on the 26th.

There is sleet in the mountains.

On the 27th, the weather improved slightly, from cloudy to cloudy.

The temperature rose slightly during the day.

From 28th to 29th, the vortex moved eastward.

There will be obvious precipitation process.

Source: Captain Mr.Q

The maximum temperature will gradually rise to around 11℃ next week.

The cold body feeling will be slightly relieved.

But on the whole, we should keep warm.

Warm up and slack off, warm and pull over.

Little friends will continue to endure.

Source: Nan Mu does not eat onions, ginger and garlic

The good news is.

As soon as March arrives

It’s rainy and ready to "call it a day"

There is still a light rain dragging its tail on March 1.

The weather improved on 2-3 days.

Especially on the 3rd.

The long-lost sunshine will finally show up generously.

Stay tuned.

A week’s weather

February 26; There is light rain in the daytime, sleet in some mountainous areas and cloudy at night; 1~3℃

February 27; It is cloudy to cloudy during the day and cloudy with light rain at night; 1~9℃

February 28; There is moderate to heavy rain in the shade; 4~7℃

February 29; There is moderate rain in the shade; 5~8℃

March 1; Light rain turns cloudy; 4~6℃

March 2; Cloudy; 0~11℃

Xiaobu warm reminder

The weather has changed a lot recently.

Everyone should add clothes in time.

Prepare rain gear before going out.

The rainy weather continues.

Road icing may also occur on some roads.

Pay attention to traffic safety when going out.

Data from/Municipal Meteorological Bureau and China Weather.

Original title: "It will last for another week! Jiande people should be careful when they go out. There is news from the long-lost sunshine … "

Read the original text

Three trends behind the recovery of beauty collection stores

Image source @ vision china

Wen | Narrow Broadcasting by Yang Yiqi

Judging from the expansion actions of various brands, this year is a year when beauty collection stores are picking up again.

During the epidemic, many beauty collection stores were affected, even mature brands such as Sephora and Watsons. Because of the weak consumption and loss of cosmetics, many new cosmetics retail stores that were previously optimistic have also been affected to varying degrees.

For example, the colorist adjusted some stores last year; WOW COLOUR’s stores dropped sharply from 300 at the peak to 100+at the end of last year; There are also some brands that close all their stores, such as ONLY WRITE and HAYDON Black Hole.

But by this year, the revenue and profitability of some beauty collection stores have improved.

For example, Yanli increased by 40% in the first quarter; The colorist also turned a profit in the first quarter, with revenue increasing by over 36% year-on-year to 236 million yuan, and the operating profit rate changed from -5.6% to 14.2%. The person in charge of the colorist’s brand told Narrow Broadcast that at present, the single-store data has maintained a double-digit year-on-year growth rate every month.

A number of beauty collection stores have also increased their store expansion and targeted areas outside first-tier cities.

Hi-burning wants to expand to 50 stores this year (there are 22 stores by December 2022) through the parallel mode of direct franchise, and most of the areas open to franchise are Guangdong and second-and third-tier cities in southwest China. The colorist also plans to continue to open 100+ stores nationwide, of which 17 stores opened in the first half of the year are in second-and third-tier cities such as Foshan, Xiamen and Liuzhou.

This year, beauty collection stores have also proposed to upgrade their brand introduction, service and spatial image, showing good expectations for the future. Yanli held its first supplier meeting in nearly three years in April this year and announced a series of upgrade strategies.

Why can the beauty collection shop pick up this year? What are the external factors? What adjustments have been made to the channel itself?

First of all, this is related to the recovery of offline consumption, and the channels such as colorists and burning fans are actively or passively optimized during the epidemic to find an expandable single-store model. Including Huamei closing the Tianmuli store in Hangzhou at the end of July and officially stopping the operation of the Xi ‘an store today, it is also looking for a suitable expansion model, such as being profitable and better matching with the ground. One proof is that Huamei said that she would open upgraded flagship stores in Nanjing, Hangzhou, Xi ‘an and other cities.

The recovery of cosmetics consumption has also played a certain role in boosting. From the macro data, the total amount of cosmetics agencies from January to August this year increased by 7.5% year-on-year.

In addition, one of the reasons why the industry thought that the makeup collection store could not be sustained was that it was not optimistic about the upstream cheap domestic makeup. Although many domestic cheap makeup businesses have fallen or even closed down since 2021, cheap makeup is not a false demand. With the liberalization of the epidemic, the consumption of cosmetics has gradually recovered. According to the data of the solution consultation, the cosmetics category of Tik Tok e-commerce increased by 90% in the second quarter of this year; There are also many domestic cosmetics that have withstood the test of epidemic situation and low tide of capital.

Another important reason is that brands are paying more and more attention to offline.

In the past five years, a large number of beauty brands have risen with the help of online traffic. However, with the online growth and the weaker advantages of traffic cost, some brands think that offline is a more efficient choice; And because of the demand of brand price control, the gap between offline price and online price is narrowing.

This means that the online and offline channel game has entered a new stage in terms of growth, traffic and price.

The ups and downs experienced by beauty shops, especially those represented by colorists, in the past few years are related to consumer demand, upstream supply and the adjustment of channels themselves.

These makeup collection stores came into being with the tide of domestic beauty cosmetics, and innovated on the traditional CS channel model, creating cheap makeup collection, big-name sample sales, no BA and other models to create a store experience that attracts Z generation. This has also led to the iteration of mature brands in terms of brand introduction, store design and experience.

These new retail species are expanding rapidly with the support of capital. A practitioner recalled to us that his brand opened 100 stores in half a year, and basically kept one store for one or two days. "It was crazy, that was really fierce. 」

However, due to the decline in the frequency of consumers’ make-up during the epidemic, and the lack of capital and flow dividends, the consumption of make-up is weak, and many make-up brands have closed down or transformed. As an accompanying channel of domestic beauty products, makeup collection stores were affected. Some investors stopped investing in makeup collection stores after seeing the decline of Tmall makeup market.

The person in charge of the brand department of the colorist believes that the demand for make-up consumption has not changed in essence, but the external factors have hidden the demands in stages, and the cheap domestic make-up is still a sustainable market.

From the consumer side, the makeup crowd is getting younger and younger, and they have demands for cheap goods; From the supply side, cheap make-up is essentially a fast fashion business. The response speed of China brands and supply chains is very fast, and a new product can be launched in two or three months, which is difficult for international brands to satisfy.

Earlier, some people in the industry told Narrow Broadcast, "Many people don’t see domestic cosmetics on Taotian’s list, so they think they are not good. In fact, these brands are on the rise in Tik Tok. 」

In particular, some brands that have crossed the epidemic cycle have become better by optimizing the supply chain, products and operating costs, and are still a stable supply of beauty collection stores.

Although cheap makeup is picking up, these makeup collection stores still need to solve the problems of pattern homogenization and loss expansion buried in the rapid expansion period.

The above-mentioned practitioners said that at that time, everyone was more concerned about the growth of the broader market than the single store. "When you go back to the single store, you will find that many stores are not profitable. Coupled with the impact of the epidemic, the problem was quickly exposed.

In addition to closing unprofitable stores, exploring a single-store profit model is the key.

The relevant person in charge of the colorist mentioned that they have been adjusting the unit yield of stores in 2022, and they have to solve large and small problems almost every week. "It is to do the basic retail skills well and optimize based on efficiency. 」

After adjustment, the colorist’s single shop tends to be standardized, with an area of 100-400 square meters. Xiyan is also making similar adjustments. They control the store to 80 square meters, hoping to speed up the chain through the small store model.

In addition, colorists also systematize brand marketing. Based on different nodes and changes in consumer demand, they formulate appropriate marketing programs to attract users to the store, so that marketing can serve daily innovation and retail, rather than marketing for marketing’s sake.

After a series of adjustments, the sales of colorists improved after the recovery of consumption. "The make-up cabinets we sell are completely out of stock, and it’s all the same wherever you go. The person in charge of the colorist brand said.

KK Group’s prospectus shows that the loss-making stores of colorists are decreasing, from 115 at the end of 2022 to 35 on March 31, 2023. The single store data has also improved significantly. The average monthly transaction volume of a single store has increased from 3454 in Q1 last year to 5065, and the GMV of a single store has increased from 316,600 yuan to 455,900 yuan, both higher than the annual data in 2020.

The person in charge of the colorist brand stressed that these data are also better than before the epidemic. "In our view, the market has returned to normal level. 」

With the recovery of offline consumption, beauty collection stores with expansion conditions began to pay attention to broader market opportunities.

In addition to the colorists and hi-burning mentioned at the beginning, mature brands such as Yanli and Sephora are also actively exploring third-and fourth-tier cities. Yanli will increase the layout of the sinking market in 2022; Sephora entered more sinking cities such as Bozhou and Taian from January to August this year.

This just conforms to a trend-in recent years, large commercial real estate is also exploring second, third and fourth tier cities, and beauty collection stores can sink with real estate companies. Yanli cooperates with regional head commercial real estate and China Resources system to lay out the sinking market; The colorist also cooperates directly with head commercial real estate such as China Resources, Vanke and Wanda. "They take us wherever they drive. 」

The main reason for the sinking of beauty collection stores is related to the gradual saturation of competition in first-and second-tier cities and the rising cost of competition. However, there are still a lot of unsatisfied consumer demand in the sinking market-consumers’ awareness of brands and products accumulated through social media is the same as that in first-and second-tier cities, but it is difficult to experience these products offline, let alone niche brands and emerging online celebrity brands, and many cities have not even popularized counters of mature brands.

Users need a channel to buy genuine products and experience more products.

In the regional markets where these beauty collection stores have sunk, there are long-established regional chain leaders, such as Merrill Lynch Beauty in Anhui and Boyimeihui in Henan, which can meet the above needs of local consumers to some extent.

Some people in the industry also mentioned that after the epidemic, individual beauty shops in some areas "have sprung up like mushrooms after rain." Narrow Broadcast also found a large number of single stores in public comments, such as infini beauty, which opened in Wujiang District, Suzhou, and opened in October last year, specializing in international big-name cosmetics, skin care and perfumes.

The continuous activity of regional brands and single stores reflects the definite demand and opportunity of sinking market, which is the premise of an industry chain.

The opportunity for national chain brands lies in enhancing their local share through branding and standardization, and meeting differentiated needs with their own supply chain characteristics.

Zheng Xuechao, director of Yanli Operation Center, mentioned, "Although there are leading companies in every region, there is a large space in the domestic cosmetics market, and (local) customers have the demand of pursuing genuine products and differentiation, and Yanli can just play its own characteristics. The core feature of Yanli is the professional skin care and the professional service of the store skin housekeeper. On the public comment, some users commented in a store in Yanli Suzhou, and finally found a channel to experience the high-end professional brand Orenassus in Suzhou.

Another example is a large number of emerging cheap makeup brands and products in the colorist’s shop. The person in charge of the brand department of the colorist said that they received unexpected feedback after sinking. "Young people in the sinking market have a better understanding of makeup than we thought. 」

However, there is also objective competitive pressure in the regional market. As the person in charge of the colorist brand said, the industry competition is intensifying. "We have a sense of crisis every day. 」

On the one hand, there are great differences in different regions, and it takes time for chain brands to accumulate their knowledge of the market. Yan Li found that customers in different regions have different needs for skin care and brand awareness, and the pallets of chain brands may not be suitable for all regions and need to be adjusted quickly. Hi-burning cooperation with franchisees is also to better integrate into the regional market.

Moreover, some regional brands are not slower than chain brands in the iterative update of supply and store design, and even some individual stores have more advantages in display innovation because they are flexible enough.

On the other hand, acquaintance society and attention to service are the consumption characteristics of the sinking market, and brands that have been deeply involved in the local market for a long time or have a smaller service radius have closer ties with users.

Zhang Fan, the owner of infini beauty, told Narrow Broadcast that although there are not many new customers in the store every day, they have accumulated nearly 500 members since its establishment, and almost all of them will buy back. "We don’t eat people very much, but mainly buy back from old customers. 」

Zhang Fan believes that service is an important reason for the high repurchase rate. She will patiently introduce and recommend products to customers, remember the products and needs bought by each customer, and bring customers a more intimate experience. Infini beauty’s core customers are mainly women aged 40+. Most of these customers don’t take the initiative to do their homework, but trust Zhang Fan’s service and recommendation, which leads to repurchase and linkage.

Zheng Xuechao also stressed that customers in the sinking market have higher demand for in-store experience and services, and brand salons and brand private enjoyment will be very popular, so they will strengthen such services locally and enhance the user experience.

In the past, beauty brands that relied on online traffic also had the demand of exhausted traffic and fierce competition, and returned to the offline to find increments.

Offline layout is an inevitable choice for the brand to grow to a certain stage, not only for sales, but also for establishing a more specific and three-dimensional brand image and closer user interaction.

Experience-oriented sub-categories also have natural demand for offline products, such as make-up, perfume and beauty instruments. Luo Xiaoman, a new make-up brand, told Narrow Broadcast that they will pay more attention to offline channels this year, provide users with color trials and improve the accuracy of purchase; Yan Li started to create an offline experience scene of home beauty instruments with domestic and foreign head beauty instrument brands last year.

With the change of online traffic environment, offline turns into incremental channels and traffic depressions.

In the past three years, the beauty industry has accelerated its online development, and the growth of major trading platforms has peaked. Only Tik Tok is still growing at a high speed. According to the statistics of 618 this year, the increase of skin care products in Tik Tok has doubled, but Taotian has increased by less than two points year-on-year. Offline has become a way for brands to find increments.

Secondly, online traffic costs are high, even higher than offline costs for many new brands. Some brands believe that the cost of entering the beauty collection store is relatively low and fixed, and there is no need to continuously invest in traffic fees, which is a more efficient channel at present.

Such traffic changes, coupled with the fragmentation of channel layout, brands began to control the price and gross profit more consciously. Therefore, the price gap between offline and online is gradually narrowing. As far as colorists are concerned, apart from broadcasting, colorists are now able to achieve the same price as online, whether in the daily sales period or in important nodes such as 618 and double 11.

Beauty collection stores have overcome the most obvious disadvantage in the past-price to some extent. Especially in recent years, due to the low price brought by frequent e-commerce promotions, "the second 0 yuan" and "buy a formal suit to send a formal suit" have become commonplace, and even some brands are increasing at a broken price.

At this new node, beauty brands enter offline through beauty collection stores, first of all to reduce the difficulty of brand layout offline, and the cost, scale advantage and management difficulty are better than direct sales.

In addition to new brands, many overseas niche brands and cutting-edge product lines of old domestic brands also hope to cooperate with beauty collection stores to enhance consumers’ awareness of brands, and many collection stores have launched relevant cooperation plans.

Moreover, the beauty collection store can play a different value from online at present, such as the difference of goods, marketing and service, which has boosted the restart of offline business.

For example, the off-line pallet is not simply a replica of the on-line pallet, and there are differences between products and packaging. Take a detail, the off-line commodity packaging needs to be coated with oil film, otherwise it will be distorted by off-line spotlights.

Based on the recognition of pallet differences, colorists will help brands incubate new product opportunities offline, and they have created new offline products with brands such as Mistine Mistine and Ke Laqi.

When Ke Laqi launched "Little Paintball" lip paste last year, he provided a full range of products with different color numbers to the colorist’s channel, and discussed the applicable people of different color numbers together. Finally, he decided on a channel-specific color number, and the sales exceeded expectations.

The colorist said that because the colorist provides color test service, it can provide faster and closer feedback to the brand, thus creating new product opportunities. "Some colors may not attract users online, but they sell well offline because they can try colors. 」

Co-creation with brands can improve the competitiveness of channels, achieve exclusive cooperation of brands or brand pallets, and attract more brands. The relevant person in charge of the colorist said that the number of exclusive brands in the colorist field has an absolute advantage in the industry.

At the marketing level, offline is naturally suitable for driving consumers to buy through activity atmosphere and scene marketing, similar to the logic of online content planting grass. The colorist believes that the off-line consumption season and consumption habits are different from online ones. Consumers will go to the store as long as they know that there are new products every month and there are different ways to play every month.

"Narrow Broadcasting" learned that colorists have new products every week and will do joint marketing with brands every month. For example, after starting to apply sunscreen products in March this year, the colorist will start with the location of the store display and sunscreen products to create a sunscreen atmosphere. During the National Day, the colorist also joined hands with Laqi, Grain Rain, Pico Bear ×loopy and Half × Barbie to hold an anniversary flash event to attract users to punch in. Compared with the pre-holiday sales, the colorist’s sales increased by 40% week-on-week.

Changes in online traffic have also made brands aware of the importance of refined operations, which is why beauty collection stores emphasize improving membership services.

For example, Yanli will renew and maintain its members through new product experience, sample presentation, brand flash, high-end member appreciation meeting, etc., and the precipitated members will also be open to the brand and conduct in-depth membership operation with the brand; Members’ private parties will also be held in conjunction with the brand, and members will be invited to experience products and services in VIP rooms of shopping malls or high-end private parties in star-rated hotels. Such activities can reach nearly 2,000 a year.

Zheng Xuechao said that they clearly perceived this trend change in 2022, and more and more brands discussed with them how to strengthen member services. Through the interaction between consumers and brands, on the one hand, customers can choose products that suit them, on the other hand, they can get more refined labels from members to make decision support for product and service upgrade iteration, joint marketing and user experience, so as to better solve users’ pain points.