Technology and consumption have always acted as two pillars of urban evolution: During the industrial revolution, tech innovation drove consumption upgrading, while under the digital economy, user demand is forcing industry changes. Innovation and consumption have always interplayed and reinforced each other.
As a strategic pillar representing China and competing with cities around the world, Shanghai is both a source of tech innovation and a vanguard of consumption. From the objective of becoming an "international center of science and innovation with international influence" outlined in the 14th Five-Year Plan, to becoming a pilot "international consumption center," Shanghai has notched up key wins.
At a time of global economic restructuring and the formation of the dual circulation strategy, Shanghai as one of China's most internationally competitive and most open portal cities must seize the opportunities of systemic innovation and new forms of consumption. Shanghai stands at a historic window of opportunity to drive its development in two ways.

Jean-Paul Agon, chairman of L'Oréal Group

Building on its 2020 and 2023 visions of turning Shanghai into a "global capital of Consumption for Good" and "global capital of beauty," L'Oréal's proposes an evolution of the concept by combining the tech innovation and consumption centers to build unique dual engines for Shanghai. By so doing, Shanghai can become a global sci-tech and consumption hub.
Our unique dual growth engines model envisions four interlocking stages by which tech innovation and consumption interplay: Innovation reshapes products and experiences; products and experiences drive more sophisticated consumption needs; consumption needs drive industry reform; and industry reform incubates more tech innovation. The dual growth engines may start slow, but they will accelerate quickly and move with increasing momentum.
We propose that Shanghai builds "3 systems" (regulation, innovation and speed) to support this growth momentum.
Regulation, to protect
Build new, open regulatory mechanisms to balance local security and consumption needs, while opening up the market.
Specifically, there are four dynamic mechanisms to guide the direction:
1) Products – [Dynamic product access mechanism] Align with international standards while accommodating local realities to create "Consumer-oriented standards" for tech-based raw materials and outcomes.
2) Consumer – [Dynamic consumer evaluation mechanism] Promote a scalable "public rating system."
3) Industry – [Dynamic Industry Regulatory Mechanism] Adopt a "more market-driven, more consumer-centric" approach to enhance alignment and coordination across ecosystem players.
4) Businesses – [Dynamic mechanism for business tech application] Lead the full-scale digital transformation of the consumer sector and proactively overcome application bottlenecks.
Innovation, to grow
Provide concrete, tangible support, drive synergies across the value chain in the tech and consumption sectors. Speed, to scale: Tap Shanghai's resources and international influence to build world-class platforms that empower development.
This includes four precisely targeted enablers to power growth:
5) Products – [Targeted product commercialization policies] Provide fertile ground for tech innovation to flourish.
6) Consumer – [Targeted consumer environment support]: Enable market education and activate demand.
7) Industry – [Targeted industry capital support] Focus investment on high-potential tech-consumption sectors with flexible, small-scale funding.
8) Businesses – [Targeted corporate talent policies] Support international and domestic innovation talent in settling in Shanghai through integrated digital technologies and flexible policies.
Speed, to scale
Build leading, open platforms to empower development: Create full chain incubators and city branding that align with international standards, offer robust real world testing, and stay close to consumer needs.
This is empowered by four open platforms:
9) Products – [Open product incubation platform] Actively bring in flagship consumer-tech incubation projects.
10) Consumer – [Open consumer experience platforms] Build the city into a global sci-tech and consumption hub.
11) Industry – [Open industry development platforms] Become a "main stage" for domestic and international businesses, especially startups, helping foreign enterprises enter the market and supporting domestic enterprises in expanding abroad.
12) Businesses – [Open business partnership platform] Promote diverse and flexible forms of collaboration.
As we look ahead to the 15th Five-Year Plan period, L'Oréal is more committed than ever to shaping the future of innovation alongside Shanghai. We look forward to working even closer with the city's authorities and all key stakeholders to write together a new chapter of innovation and good consumption that benefits us all.
Source: Shanghai Daily