City renewal spurs consumption in metropolitan areas

Most service consumption requires immediate production and consumption, relying on face-to-face interaction. Particularly in cities, especially large ones, the vast market scale and high population density contribute to leveraging agglomeration advantages and reducing consumption costs.

In recent years, the urban employment population in major cities such as Shanghai and Guangzhou has gradually returned to the central urban areas with the rapid development of the service industry. This trend indicates that conforming to the aggregation of residential and employment populations in urban centers is crucial to stimulating economic vitality.

In the renewal of old urban areas, consideration should be given to the affordability and preferences of different groups, enhancing inclusiveness for low-income groups.

Currently, the construction of consumption center cities will lead the future development of major cities in China. Urban planning and policy-making for metropolitan areas need to strengthen top-level design, using transportation infrastructure as a breakthrough to establish a closely connected "octopus" model between central urban areas and peripheral satellite cities.

This model will drive the complementary division of labor between central and peripheral areas, with the central area providing high-quality and diversified services, and the periphery offering suitable low-density services for leisure, sports, and tourism activities.