The New Trend in County Economies: The Brilliant Transformation from "Small Counties" to "Powerful Consumption Centers"
Hello everyone, I'm your financial analyst. Today's topic might seem more down-to-earth than you think, but the economic logic behind it is quite substantial—county-level consumption.
Many people still associate "counties" with "hometowns," "small places," or places where the only activity is attending markets. However, data shows that a silent revolution is taking place. By 2025, at least 28 counties are expected to have a total retail sales volume of consumer goods exceeding 50 billion yuan, with four counties even surpassing the 100 billion yuan mark.
What does this mean? It means that the purchasing power of these counties is on par with that of many prefecture-level cities and even exceeds that of some provincial capitals. Today, we will break down this news into five key aspects in plain language to show you what makes these "powerful consumption centers" so strong and where the money is flowing in the future.
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Who Are the Leaders? The Four Counties with Retail Sales Over 100 Billion Yuan
The news mentions four counties with retail sales exceeding 100 billion yuan: Yiwu, Kunshan, Jinjiang, and Changshu. Why are they so successful? Each represents a different approach to county-level economic development:
1. Yiwu: The Global Shopping Hub**
Yiwu is not only the capital of small commodities in China but also a global trade benchmark.
- Population Dividend: What makes Yiwu unique is its large population of outsiders. One in every two people there comes from outside the province, totaling 880,000 immigrants. These newcomers have needs for food, housing, and shopping, which drives a huge consumer market.
- Industrial Support: In 2025, Yiwu's import and export volume will reach 836.4 billion yuan, a 25% increase. 70% of the world's goods related to the World Cup are shipped from here.
- Business Ecosystem: The Yiwu International Trade City has become a popular destination for young people, with 1.26 million business entities (including over 10,000 foreign-funded ones), making it a testing ground for global business innovation.
2. Kunshan: The County of High-Income Consumption Driven by Industry**
Kunshan is a typical example of industry supporting consumption.
- Industrial Pillar: With 35,000 industrial enterprises and a total industrial output value of over 1.3 trillion yuan, Kunshan offers many high-paying jobs.
- Consumption Upgrade: Affluent residents are willing to spend, and the city has attracted 78 "first stores" of various brands, indicating a desire for novelty and quality.
3. Jinjiang: The Brand Empire of the Private Economy**
Jinjiang may be small, but it's home to many well-known brands.
- Brand Cluster: Brands like Anta, Hengan, and Qipiwolf originated here. 97% of Jinjiang's economy comes from the private sector, creating a culture of entrepreneurship and affluence among its residents.
- Rural Industrialization: The county has promoted rural industrialization, allowing farmers to work or start businesses locally, boosting local consumption.
4. Changshu: The Fashion Transformation of Traditional Industries**
Changshu relies on textiles, clothing, automobiles, and equipment manufacturing.
- Industrial Heritage: As a famous city in the south of the Yangtze River, Changshu's textile industry has evolved to focus on brands and design.
- Cultural Appeal: The combination of culture and tourism attracts visitors from surrounding areas, boosting consumption.
In summary, these counties are strong because they either have global trade flows (Yiwu), strong industrial foundations with high incomes (Kunshan), dense brand clusters (Jinjiang), or a rich industrial heritage (Changshu). They don't save money because they are poor; they spend it because they are wealthy.
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Why Are Counties Suddenly Becoming Popular? Three Main Drivers
Previously, consumption was mainly concentrated in big cities like Beijing, Shanghai, Guangzhou, and Shenzhen. Why are counties now becoming new growth points?
There are three main reasons:
1. Population Shift to Counties (Urbanization Benefits)**
With the advancement of new urbanization, many rural residents are settling in counties. Needs such as housing, renovation, education, and healthcare drive local consumption.
- Data Support: Meituan data shows that the number of active consumers in counties increased by over 15% in 2025, with order growth exceeding 20%, outpacing big cities.
2. Increasing Incomes and Changing Consumption Habits**
Rural residents' incomes are rising, and they are no longer just looking for cheap goods but also quality products.
- Return to Rural Areas for Entrepreneurship: Many young people are starting businesses in counties, bringing urban consumption trends like coffee, camping, and gourmet dining.
- Data Support: Rural retail sales grew by 1.3 percentage points faster than urban areas in the first half of the year, indicating market vitality.
3. Improved Infrastructure and Logistics**
Previously, it was difficult to shop in counties, but now delivery services and cold chain logistics have made it possible to access the same range of products as in big cities.
- Data Support: The proportion of rural retail sales in total retail sales has risen to 39.2%, narrowing the consumption gap between urban and rural areas.
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Why Are Big Brands Entering Counties?
You might think that brands like Sam's Club and Hilton are too upscale for counties, but there's a deeper reason behind their presence:
1. Intense Competition in Big Cities
Urban competition is fierce, with high rents, labor costs, and customer acquisition costs. Counties offer lower costs, making them more profitable.
2. Unmet Consumer Needs
County residents have more money but lack high-quality shopping options.
- Sam's Club Example: Sam's Club has opened stores in Yiwu, Jiangyin, Kunshan, Jinjiang, and Zhangjiagang. These counties have affluent residents with a demand for imported foods and high-quality daily necessities.
- Hotel Example: Hotels like Hilton and Marriott are entering counties due to the growth of tourism and business activities, creating a demand for luxury accommodations.
3. Unified Brand Experience
Companies want to sell the same products in both cities and counties to reduce supply chain costs and provide a consistent shopping experience.
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How Is the Government Helping? National Support for County Economies
To boost county-level consumption, the government has introduced several measures:
- **August this year, nine departments, including the Ministry of Commerce, issued the "Opinions on Further Stimulating the Downward Market and Activating County Consumption," focusing on simplifying regulations and providing support for businesses.
- Simplified Approval Processes: Procedures for opening supermarkets and convenience stores have been streamlined.
- Multiple Locations with One License: Chain businesses can operate multiple stores in the same county with a single license, reducing administrative costs.
- Better Products and Logistics: Companies are encouraged to release new products in counties, and support is provided for the rollout of new energy vehicles and smart products.
- Improved Facilities: Old commercial facilities are being upgraded, and idle assets are being converted into commercial spaces.
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Different Counties, Different Approaches
China has over 2,800 counties, each with unique characteristics. The government is tailoring its support accordingly:
- **Strong Economies (Yiwu, Kunshan): Focus on quality improvement and leading new consumption trends.
- Middle-Level Counties: Strengthen infrastructure and develop local specialties.
- Small and Less Populous Counties: Ensure basic needs are met and provide essential services.
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Conclusion: County Economies Are a Pillar of China's Economy
This news clearly shows that county economies are no longer on the fringes but are becoming central to China's economic landscape:
- For ordinary people, it means better shopping, dining, and accommodation options in their hometowns, with more diverse choices.
- For entrepreneurs, county markets offer less competition, lower costs, and strong demand, making them excellent opportunities.
- For investors, counties with a solid industrial base, growing populations, and improving infrastructure are key areas for future consumption growth.
As more people move to counties, incomes rise, and infrastructure improves, county-level consumption will continue to drive significant economic growth. This is not just an economic phenomenon but also a transformation in lifestyle.