The economic landscape is perpetually evolving, with consumer behavior at its core driving growth across various sectorsIn China, the shift in consumer demand is particularly strikingAs residents' consumption needs transition from mere survival to a focus on quality and development, we observe a notable transformation in spending patternsThe trend now embraces a dual approach, balancing both service and goods consumption, which reflects a deeper alignment with the principles of high-quality growth.

Recent statistics reveal a burgeoning increase in service consumptionFor instance, it was reported that in 2023, service retail grew by 20% compared to the previous year, with the average per capita expenditure on services seeing a 14.4% rise, now constituting 45.2% of the overall consumption expenditure per capitaThis marks a significant phase where services not only complement product consumption but are also becoming predominant in the spending behaviors of residents

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In this context, service consumption emerges not only as a pillar for expanding economic activity but as a critical area possessing remarkable latent growth potential.

The introduction of new technologies, particularly big data and artificial intelligence, has been instrumental in reshaping the landscape of service consumptionThese digital tools allow for a nuanced understanding of consumer needs, enabling service providers to refine their offerings in terms of format, content, and contextFor example, by leveraging these technologies, service providers can enhance their operational capabilities and efficiency, resulting in a more effective match between service supply and consumer demand.

Unlike traditional physical goods consumption, service consumption carries a unique requirement for a “soft environment,” characterized by trust and qualityA key aspect of improving this soft environment lies in the enhancement of digital capabilities, which acts as a catalyst for unveiling latent demand for services

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By creating a more supportive digital landscape, the industry can better meet the growing aspirations of the public for improved living conditions.

One of the primary challenges in service consumption arises from trust issuesHere, digital platforms can play a significant role by ensuring strict compliance with quality across various dimensions—information reliability, channels used, and the quality of services deliveredThis is especially critical in decentralized and non-standardized service sectors, such as home care services, where the implementation of digital technologies can ensure transparency throughout the service provisioning processBy doing so, a trustworthy consumption environment can be established, allaying consumer anxieties related to service quality and reliability.

Moreover, the efficiency of matching service supply with consumer demand can be significantly enhanced through digital transformation

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Prior to the advent of digital technologies, services required in-person interactions, which constrained the operational reach and market potential of new service modelsHowever, with the digitalization of service processes—facilitating online channels for bookings, intelligent scheduling, and multi-modal delivery systems—this challenge can be overcomeA study of contemporary shopping behaviors indicates that consumers are increasingly inclined towards platforms that offer a seamless blend of online and offline experiencesThis shift not only increases the diversity of services available but also enhances overall service matching efficiency.

Creating innovative consumption experiences is another critical strategy to expand service scope and enhance consumer satisfactionGiven that service consumption is inherently experiential, digital technologies facilitate sustained interaction between service providers and consumers, allowing for an expansion in both the temporal and spatial dimensions of service offerings

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Take, for instance, the burgeoning field of digital tourism, where virtual reality experiences such as cloud concerts and online travel provide consumers with immersive engagement that transcends physical limitationsBy integrating cutting-edge technologies, including 5G and holographic projections, new forms of cultural exhibitions can be developed, offing richer viewing experiences and broader access to artistic endeavors.

To fully realize the potential of service consumption, strategic efforts must be directed towards both the supply and demand sidesThis includes developing more digital consumption scenarios and enhancing the supporting infrastructure necessary for digital transactionsDriving a digital transformation in service consumption will undoubtedly yield significant benefits, propelling both quality enhancements and the overall modernization of services.

For instance, advancements in customized, experiential, and intelligent consumption should be encouraged, promoting developments in the “Internet + circulation” model

Here, digital platforms leverage their strengths in data utilization, technology, and traffic to pioneer innovative digital consumption scenarios, exploring solutions for creditworthiness and transaction rulesFurthermore, accelerating the digital transformation of the service industry is imperativeThis requires an upgrade in foundational infrastructures, such as Internet of Things (IoT) capabilities and cloud computing services, as well as the establishment of community-based digital service facilities.

Collaboration between societal organizations, platform enterprises, and industry leaders should also be actively promoted to refine service standards and better align services with consumer expectationsStakeholder engagement in setting service standards not only aids in addressing core consumer concerns but also reinforces the structure needed to protect consumer rights effectively