Study on the status and relationship between consumption upgrading and high-quality development of circulation industry

Zhen Wang

Abstract：Through the study of the connotation and current situation of the high-quality development of consumption upgrading and circulation industry，the meaning and development of the two are clarified. And the relationship between consumption upgrading and high-quality development of circulation industry is combed，and it is found that there is a mutually reinforcing relationship between consumption upgrading and high-quality development of circulation industry. Consumption upgrading is the engine of high-quality development of circulation industry，and high-quality development of circulation industry is the driving force of consumption upgrading. And this put forward to promote the consumption upgrading and high-quality development of circulation industry strategy，with a view to promoting the stable and healthy development of the economy.

Keywords：consumption upgrade;high quality of circulation;present situation;relationship;

I. The connotation and present situation of high-quality development of consumption upgrading and circulation industry

1. The Connotation and Status of Consumption Upgrade

The research on residents 'consumption has a long history，the research on residents' consumption has a long history，and there are also some consumptive consumption hypotheses in academia. For example，the absolute income hypothesis，the relative income hypothesis），the permanent income hypothesis，and the life cycle hypothesis. Resident consumption upgrade refers to the consumption resource allocation process that is performed by people under certain budget constraints to meet their own desires and maximize utility. It is the upgrade of consumer consumption structure，consumption mode，consumption quality，and consumption environment. Comprehensive performance of consumption concept upgrade. The upgrade of consumption structure refers to the continuous improvement of consumers' consumption levels，and the transition from subsistence consumption to development and enjoyment consumption. The upgrade of consumption methods refers to the change from previous cash，on-site and spot transaction methods to intelligent，The transformation of platform and network consumption;upgrade of consumption quality means that consumers pay more attention to originality，intelligence，greenness，refinement，experience，etc .;upgrade of consumption environment means consumption supply，consumption facilities，transaction security，service level，consumer rights protection，rights and interests Protection is more secure and consumer satisfaction is improved;the upgrade of consumption concepts means that consumers pay more attention to cultural consumption，health consumption and interest consumption.

In recent years，the level of consumption of residents in China has been continuously improved，and the driving force of residents' consumption on economic growth has been increasing. Today，export growth is weak and the pull and contribution to economic growth slows down，investment stimulus policies have little effect and significant negative impact，in the troika of economic development，consumption to economic growth of the driving role of increasing. With the deepening of China's supply-side structural reform，China's macro-economy has also entered the stage of shifting speed，from the high-speed growth of the past to medium-high-speed growth. Under the background of weak international economic growth and the entry of domestic economic development into the "new normal"，export growth is weak and the pull and contribution to economic growth is slow，and investment stimulus policies have little effect and have significant negative effects. The troika that used to rely on investment，consumption and exports as a driving force for economic development is now unsustainable. In order to meet the people's needforthe for a better life，it is necessary to transfer the economic growth momentum to the consumption of residents and play the role of consumption in stimulating the economy. The report of the 19th National Congress of the Communist Party of China also pointed out that "new growth points and new kinetic energy will be cultivated in the fields of high-end consumption，innovation leadership，green low carbon，shared economy，modern supply chain，human capital services and so on". The people's growing need for a better life is and will continue to trigger the revolutionary evolution of consumption mode，new consumption and high-end consumption gradually become the mainstream consumption mode.

Take high-end luxury goods，for example，according to bain's report，the luxury market in mainland China continued to grow by 20% in 2017，with the market size growing from 142 billion yuan in 2017 to 170 billion yuan. In the context of macroeconomic stability and good employment prospects，China's consumers have maintained an optimistic attitude towards their financial situation. Chinese consumers remain highly optimistic about their finances amid slowing global economic growth and market volatility，with 81 percent saying they are in better shape than they were five years ago，according to Nielsen's latest global high-end research. average. While income increases and the willingness to consume increases，consumers' consumption patterns of eating，wearing，living and traveling are also changing quietly. With the rapid development of e-commerce，logistics，new retailing，etc.，goods and services are easier to obtain than ever before，not only the quality of food and clothing significantly improved，consumers in education，culture，entertainment and other categories of consumption share gradually increased，including tourism，tourism，Leisure and entertainment is not necessary for life but significantly improve the quality of life of the proportion of expenditure is obvious，people's willingness to consume gradually from the survival-oriented consumption to the development-oriented，enjoy-oriented consumption transformation. It can be seen that the potential of domestic consumption is huge，and continuously promote the upgrading of household consumption.

2. The connotation and present situation of high-quality development of circulation industry

As the basic and leading industry of the national economy，the high-quality development of circulation industry is of great significance to the development of the national economy. The high-quality development of circulation industry includes the following aspects：from the pursuit of quantity growth，scale expansion to pay more attention to the quality and efficiency improvement of circulation，industrial structure from unreasonable to gradual adjustment and optimization，from the traditional mode of circulation to modern mode of circulation to vigorously promote and develop The use of resources from extensive to intensive transformation，energy conservation and emission reduction，low-carbon development，green circulation is promoted，from relying on capital and labor input to focus on scientific and technological progress，management innovation drive and improve the quality of workers. First of all，from the perspective of paying more attention to the quality and efficiency of circulation to improve the improvement of the transformation，refers to the contribution of the circulation industry to economic development，the efficiency of the circulation industry is constantly improving，and better meet the consumption needs of residents;Better promote the healthy development of the national economy，from the perspective of modern circulation system，refers to the circulation industry and big data，artificial intelligence，supply chain and other technologies，to promote the development of circulation industry innovation. From the perspective of intensive development of circulation industry，it refers to the circulation industry unit energy consumption，pollution and other indicators continue to decrease，better meet the needs of residents green，healthy life.

However，from the present point of view，china's circulation industry high-quality development still has some problems. First，the circulation industry is low in scale. However，due to the low barriers to entry and exit of the circulation industry，the development of the industry has been facing the "small scattered weak" problem，some circulation enterprises are still in a small，scattered，weak state. At present，the domestic circulation enterprises are mainly small and medium-sized circulation enterprises，the lack of Wal-Mart，Carrefour and other multinational retail giants to compete with the large-scale circulation enterprises，China's circulation enterprises in the international market is low overall competitiveness. In the fierce market competition，foreign circulation enterprises with its strong capital advantages，management advantages and advanced circulation information technology to seize the market quickly，aggravated the market competition. Second，the structure of the circulation industry is not reasonable. On the whole，wholesale and retail，accommodation，catering industry showed a rising trend of volatility，while postal communications industry，transportation warehouses and other volatility decline trend，the former growth rate is significantly faster than the latter. From the proportion of output value to the circulation industry，the proportion of different industries in the total output value of the circulation industry is also significantly different，the former proportion of the continuous decline，while the wholesale and retail，accommodation and catering industry output value of the proportion of the circulation industry output value continues to grow，and there is a growing trend. Third，at present，China's circulation industry modernization technology level lags behind the European and American countries，the degree of mechanization is low，labor costs increased，especially in some economically underdeveloped areas or rural areas，the operation of the circulation industry basically rely on manpower to complete，which is the main reason why China's circulation industry can produce a large number of employment opportunities. With the rising labor price in China in recent years，as well as the continuous improvement of the state's requirements for social security for workers，the remuneration of manual workers has been increased，the circulation industry that used to rely on cheap labor to develop has been greatly affected.

II Consumption upgrade is the strongest engine for high-quality development of the circulation industry

1. Consumption upgrade guides the development direction of the circulation industry

On the one hand，the high-quality development direction of the circulation industry requires investment，innovation，and production around the changing trend of consumer demand to maximize the enthusiasm and effectiveness of industrial investment and innovation，enhance industrial competitiveness，and thereby optimize the industrial structure of the circulation industry. And promote the transformation and upgrading of the circulation industry. Therefore，only by conforming to the law of consumption upgrade，can we effectively stimulate consumption to lead investment，optimize consumption resource allocation，consume incentive innovation，consume forced reform，and promote a virtuous cycle of industrial upgrading for a prosperous economy. Therefore，on the whole，giving play to the leading role of consumption upgrade is an important guide for industrial upgrading and an important way to achieve economic quality and efficiency. On the other hand，when the structure of the circulation industry is optimized and upgraded，the optimized industrial form and reasonable industrial structure can also nurture consumption and upgrade，cultivate a lasting driving force for consumption upgrade，and promote new technologies and new business forms with consumption upgrade to promote the further development of the circulation industry. Optimizing and upgrading，the two promote each other，and realize a virtuous circle and interaction of upgrading and high-quality development of the circulation industry.

2. Consumption upgrade improves the scale and structure of the circulation industry

Consumption is the ultimate goal of production and the last link in social reproduction. In the context of the commodity economy，the production of social goods is diverse and diverse，with consumers occupying a dominant position. Only strong social consumption can drive industrial development. The greater the amount of household consumption，the greater the scale of stimulation and promotion of the expansion of the circulation industry. The increase of residents' consumption level and the diversification and differentiation of consumption will affect the changes in the organization and structure of the circulation industry，promote the application of high technology in the circulation industry，and determine the development scale of the circulation industry. Only by expanding the consumption scale can the circulation industry continue to develop. The circulation industry is the bridge between production and consumption，and consumption is the ultimate goal. The quantity of goods produced in society is determined by consumer demand. Consumer demand is the starting point of economic development and the key to the normal operation of social reproduction. In the context of a market economy，the prosperity of the economy and society requires strong social needs to achieve it.

III.The high-quality development of the circulation industry is the core driving force for consumption upgrade

1. High-quality development of the circulation industry optimizes supply channels

As a bridge between production and consumption，the high-quality development of the circulation industry can optimize the supply channels for goods and services. First，the circulation industry is a necessary condition for realizing consumer demand. Goods and services can enter the consumer sector only through circulation. Through technological innovation and business model innovation，the circulation efficiency has been greatly improved，the circulation costs have been reduced，and the consumption level of residents has been improved. Second，the high-quality development of circulation has optimized the information transmission channels between production and consumption，and achieved production based on demand. Today，consumer demands are complex and changeable，and producers can only win the market if they better meet consumer demand. The circulation environment is critical. The commercial circulation environment is not smooth，or the circulation channels cannot keep up with the growing consumer demand. In the end，all goods cannot be smoothly converted into effective consumption by the people. Not only can it not meet the needs of the people，but also cause A huge waste of social resources. Only when the goods supplied by the society can better meet the demand-side demand can the social reproduction proceed smoothly. The high-quality development of the circulation industry optimizes the two-way transmission of information between production and consumption. Producers can determine production according to consumer demand preferences and demand，thereby improving circulation efficiency and better meeting consumers' new consumption needs.

2. High-quality development of the circulation industry expands consumer demand

First，the high-quality development of the circulation industry has spawned more new formats. In the past，the transformation and upgrading of China's commercial distribution companies was slow，unable to keep up with the increasing diversification and enrichment of people s consumption，resulting in insufficient effective supply of living services，restricting the upgrade of consumption levels，and the existence of unreasonable product consumption structures and a poor consumption environment Optimization，urban and rural consumption potential has not yet been tapped，and other issues. The emergence of more new formats will help promote the upgrade of consumption structure，upgrade the consumption patterns of residents，upgrade the consumption quality，promote the upgrade of the consumption environment，and promote the upgrade of residents' consumption concepts. Second，the high-quality development of the circulation industry will promote the improvement of the consumption environment. The perfect circulation system can enable enterprises to establish a common commodity information system，provide comprehensive services such as information release and quality traceability，strengthen data analysis and emergency response capabilities for retrospective quality and safety，reduce potential consumption risks caused by information asymmetry，and effectively protect consumers. Consumer benefits. A rich distribution format and a sound consumption environment will stimulate residents' consumption potential and promote consumption upgrades.

IV. Conclusions and recommendations

In summary，it can be found that the high-quality development of the circulation industry can promote the upgrading of residents 'consumption. The upgrading of residents' consumption is also the source and driving force for the high-quality development of the circulation industry. The two are interdependent and promote each other. The structural change and innovation of high-quality development of the circulation industry need to be based on household consumption and adapted to the direction of household consumption upgrade. Residents' consumption upgrade must also be restricted by the circulation scale，circulation structure，circulation efficiency，and circulation organization. Therefore，in order to better promote the high-quality development of the circulation industry and promote the upgrading of residential consumption，a two-pronged approach is required. First，improve the circulation industry system and mechanism，better play the basic and leading role of the circulation industry，and promote the upgrading of residents' consumption. Second，improve the consumption environment，increase residents' income，raise the level of residents' consumption，and promote the high-quality development of the circulation industry. Only if circulation and consumption are compatible，mutually promoted，and constantly improved can we promote residents' stable and healthy development.

作者簡介：王震（Zhen Wang）、学校：北京工商大学经济学院（School of Economics，Beijing Technology and Business University）、专业：产业经济学（Industrial economics）。