Xiaoshan District, Hangzhou held its first digital consumption fair on March 28, and initial plans to build a digital living demonstration zone in the district were released at the fair's opening ceremony.

According to the plans, Xiaoshan will lead Zhejiang province in the development of such a zone in an effort to stimulate consumption and the economy, as a large number of shops in Xiaoshan have moved their brick-and-mortar businesses online amid the novel coronavirus outbreak.

During the digital consumption fair, various types of online promotions and consumption will be on offer.

Shoppers won't need to visit stores in person to purchase items, as live-streamed promotional shows and other online promotions will provide them with an immersive shopping experience.

The local government in Xiaoshan has long planned to transform its retail industry, and this is the perfect opportunity for the district to accelerate the development of a digital living demonstration zone as consumption habits have been reshaped by the epidemic.

Early in 2017, Xiaoshan signed an agreement with Alibaba to jointly promote the new retail innovation project, and in 2019, Xiaoshan teamed up with Koubei Co, a subsidiary of Alibaba, to build two Koubei streets in the district's downtown area and in its Finance Town.

In January, Xiaoshan signed a cooperation deal with Local Service Company, an arm of Alibaba. Both parties agreed to build digital living demonstration zones to promote the upgrading of trade in Xiaoshan and expand consumption.