A Study of Countermeasures to Activate the Consumption Potential of Urban Residents in Yangtze River Delta Region by Linking Supply and Demand Synergy

Abstract

The global economic recovery is having trouble because of the epidemic. A key strategy for boosting China’s economic vigor is to increase domestic demand. The goal of this essay is to examine the consumption habits of city dwellers from the standpoint of urban development. It also examines the barriers to consumption upgrading from both the supply and demand sides. Using the panel data of 41 prefecture-level cities in the Yangtze River Delta from 2005 to 2019, this study explores the distribution of cold and hot spots as well as the agglomeration of residents’ marginal consumption tendencies using ArcGIS’ Jenks method. We provide ideas and actions to raise inhabitants’ consumption standards and levels in cold spot locations on the supply and demand sides. The empirical findings demonstrate that: (1) There are distinct spatial patterns in the seven categories of consumer goods consumption tendencies among urban residents in the Yangtze River Delta, (2) in contrast to hot spots, urban residents in cold spots are constrained by the supply side, and the demand for consumption upgrading has not yet been met. Hence, we can increase the capacity for consumption by raising resident income, altering their consumption patterns, and developing consumer marketplaces.