Digital Consumption and Manufacturing Industry’s Digital Transition

Liu Yong*1 and Yang Huipeng2

1 Institute of Industrial Economics, Chinese Academy of Social Sciences (CASS), Beijing, China

2 School of Applied Economics, University of Chinese Academy of Social Sciences (UCASS)

Abstract: As a form of consumption based on the digital content and traits of goods and services, digital consumption is characterized by a strong dependence on the digital technology infrastructure, precise identification of consumer demand, adaptability to new business modes, swift consumer feedbac􀀃 and response, and great mar􀀃et potentials. 􀀁nder the dual driving forces of technology empowerment and consumption upgrade, 􀀄hina􀀅s digital consumption has been growing rapidly, digitalization is empowering traditional sectors of consumption, and the consumption of digital content is expanding. Consumer potential for digital consumption is being unleashed in low􀀂tier cities, and new􀀂generation consumers are gaining influence. With an increasing number of digital consumers, new consumption modes and services have proliferated than􀀃s to the improving digital infrastructure. 􀀆rowing digital consumption has created an increasing demand􀀂pulling e􀀇ect that spurs product and service innovation, corporate internal process digitalization, and changes in corporate organization and decision􀀂ma􀀃ing. 􀀈riven by digital consumption, industrial chain upgrade and restructuring and business mode innovations will improve user e􀀉perience and firm e􀀇iciency, contributing to the 􀀊uality, e􀀇iciency, and dynamism of the manufacturing industry. Amid surging digital consumption, the digital transition of manufacturing is still faced with some problems and challenges. 􀀋t is important to deepen the user-centric concepts and modes of value creation, create a differentiated service system, optimize digital resource allocation, enhance digital brand management, and scale up R&D and innovation of products and services.

Keywords: Digital consumption, manufacturing industry, digital transition

JEL Classification Code: O14, O33

DOI: 10.19602/j.chinaeconomist.2022.11.03

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