China distributes shopping vouchers to citizens

The authorities of Chinese cities have begun the practice of distributing vouchers to citizens, which they can exchange for purchases in stores, writes Bloomberg. According to the government, this should stimulate consumer spending after the collapse due to the coronavirus pandemic.

Beijing will allocate about 12.2 billion yuan (or $1.7 billion) to issue vouchers that can be used for online and offline purchases in sectors such as catering, tourism, education and sports. The distribution of vouchers will begin on Saturday.

Retail sales in Beijing fell 20.4% in the first four months of 2020 - the decline in the capital was deeper than the national one (-16.2%), according to local and national bureaus of statistics.

At least 50 cities across China have already given away more than 6 billion yuan ($850 million) in vouchers, according to Bloomberg, including Wuhan and Hangzhou.

According to statistics, the Chinese exchange vouchers mainly for food and basic necessities. For example, the Chinese retailer CR Vanguard said that fresh vegetables and fruits, disinfectants, snacks and dairy products are best sold through vouchers. The Chinese, interviewed by Bloomberg, explain that despite this possibility, they are not ready to shop in physical stores. According to a study by Chinese LexinFintech, 66% of respondents said they prefer to spend vouchers on online shopping, and another 53% on food delivery.