Concerted efforts should be made by regulators, financial service providers and retailers to promote more consumption, attendees at Shanghai's second Lujiazui Finance Salon heard on Wednesday.

Hu Haozhong, executive vice-president of the card payment giant China UnionPay, said that integrated efforts from various parties are now of greater importance given the evolving landscape of consumer demand, which is increasingly fragmented amid diversified consumption scenarios.

"The marginal effect of resource input from any single party is rapidly diminishing," Hu said.

"To effectively expand, upgrade and improve the quality of consumption, financial institutions, internet platforms and merchants need to strengthen resource integration to boost consumption activities."

According to Hu, the replacement of home appliances was a major element of consumption in China last year, driven mainly by a government trade-in program, while a shift toward greater diversification can be anticipated this year.

"Consumption will become more varied, with services and other new forms of consumption expected to rise," he added. "Meanwhile, spending aimed at personal well-being and self-gratification is expected to see further growth. In this sense, government vouchers can target these scenarios to stimulate consumption."

Chen Lei, vice-president of Shanghai Bank, also stressed the importance of fostering a consumer ecosystem which encourages people to spend money. Shanghai Bank has piloted a practical approach by showcasing age-friendly product renovations within its branches.

"By allowing the elderly to see physical products and understand them clearly, we can effectively convert their interest into actual consumption," said Chen.

Xu Peichuan, head of the financial business department at social network platform Xiaohongshu, said that the lines between consumption and investment have become blurred within the last year.

"Traditionally, spending was seen as depletion and investment as value appreciation. However, consumer behaviors have combined practicality with investment value," Xu said.

He added that consumers' greater interest in gold products last year was one good example, as the purchasing logic has shifted from accessory to physical asset investment.

Meanwhile, health check-ups and retirement planning are increasingly viewed as investment-oriented expenditures. In this sense, future financial products must be more deeply embedded in daily-life scenarios, he added.

Alipay, the payment tool of major technology firm Alibaba, tried distributing consumption coupons for stores in Hangzhou via its "Tap!" service. According to Wang Lijuan, general manager of Alipay, all the coupons issued were used before their expiration date.

First launched in Shanghai in June 2024, the "Tap!" feature also facilitates merchant membership sign-ups and targeted coupon distribution. Six-month monitoring shows that this service can increase consumer purchase frequency by 10 percent, said Wang.