By Cao YiXia, Chen Xinxin As 2021 was approaching, Shanghai Columbia Circle Tsutaya Books was unveiled in Shanghai. Despite the freezing temperature in winter, the visitors’ enthusiasm ran high. The 600-yuan canvas bags with a zipper became a great hit and sold pretty well. Situated in the 96-year-old Columbia Circle, Tsutaya Books distinguishes itself from other bookstores by various products, diverse business forms and copious supply of original overseas magazines. The Proposals for Formulating the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and the Long-Range Objectives Through the Year 2035, (hereinafter referred to as the Proposals) clearly points out that it is necessary to accelerate the establishment of a new development pattern whereby domestic and foreign markets can boost each other, with the domestic market as the mainstay. Under the new pattern, promoting consumption and expanding domestic demands will become the main engine for the duel economic cycles. Against this background, players in the cultural and creative industries such as Tsutaya Books need to enhance digitization and brand building and create high-quality “super IP,” while paying attention to spatial extension and functional integration, so as to grasp the opportunities brought by Chinese people’s increasing cultural consumption and achieve development by leaps and bounds. Digitization is the only road leading to high development of the cultural and creative industries under the new development pattern The Proposals clearly puts forward the necessity of implementing a digitization strategy for the cultural industry and accelerating the development of new cultural enterprises, business forms and consumption models. Currently, computer, media and communication technologies have profoundly affected and even reshaped the development pattern of the cultural and creative industries, and promoted the transformation towards internet-based development and digitization. Meanwhile, digitization has become the only road leading to sustainable development for the cultural and creative industries under the new development pattern. The popularization of digital technologies has sparked a round of revolution in the inheritance and innovative development of China’s fine traditional culture. The innovative application of these technologies in the field of traditional culture makes it possible to record traditional craftsmanship techniques through 3D imaging, store and spread them through cloud. On one hand, it effectively addresses disadvantages of traditional inheritance methods. On the other hand, it better satisfies the audience’s needs in terms of the presentation mode, encouraging Chinese people to consume traditional culture and helping it go abroad and global. For example, Tencent’s Digital Supporters Program includes protection, inheritance and re-creation of Dunhuang art. First, it uses modern digital technologies to protect Dunhuang murals and improve the efficiency of restoration. Second, it interprets the unique styling elements in Mogao Caves through modern art to bring new life to them. For example, Honor of Kings launched a new visual effects package for a character called Yang Yuhuan, inspired by the ancient murals of Dunhuang. Finally, the most representative elements of Dunhuang culture are reinterpreted through modern artistic forms such as music and dance to increase the influence of Dunhuang culture in China and beyond. In Britain, the integration of digital economy and creativity has given birth to flat white economy (commonly known as non-mainstream buff economy). The term has its origins in flat white coffee popular in cafes in east London, and covers several digital creative industries including media, the internet, movies, music and advertising. According to the data from the Center for Economics and Business Research in Britain, in 2018, the Britain’s white flat economy registered an increase of 4.6%, accounting for 14.4% of its economy and becoming the largest economic sector in the county. Similarly, the integration of digitization and creativity not only increases consumption, but also has the potential to become the main driver for China’s economic growth in the future. Attracting consumers with supreme quality and distinctive features Amidst the new development pattern and consumption upgrade, new scenarios of cultural tourism consumption including tourist trips and healthcare of all kinds keep springing up. As the old saying goes, good wine needs no bush. To withstand the test of the times and achieve high-quality development, the cultural and creative industries need to pursue high-quality development and foster distinctive features, which is the key to attracting consumers. Yuanjia Village is a cultural and creative town in Shaanxi Province lauded as the “No.1 village in Guanzhong area.” It focuses on Guanzhong folk culture and food culture. As a successful example of rural tourism, it receives over one million tourists every year, with the annual turnover exceeding 1 billion yuan, becoming a big hit on the internet. It has built workshop and snack streets in the resort, exerting strict control on product quality. For example, stores are required to select raw materials of the highest quality, all foods should be cooked for immediate consumption, all production processes must be directly visible to tourists, and false products and blind spots are not tolerated. With villagers as the main participants, the village as the carrier, the restoration of Guanzhong folk culture and reconstruction of rural life as the core magnet for tourists, Yuanjia Village’s unique way to success cannot be replicated. High-quality products coupled with nostalgia, folk culture and a modern atmosphere give birth to its “super IP.” Since cultural creativity is the key to the development of cultural and creative industries, it is necessary to deeply explore the individual characteristics of cities, and display them through appropriate digital media. A city can display its individuality through details, such as the real-life tumbler toy performance in the Datang Everbright City of Xi’an and the rite of breaking wine bowls for good fortune in Yongxingfang. They give the city and its scenic spots unique spiritual charms and make them stand out among thousands of cities. Besides, touching stories can be told. For example, Yonghe County in Shanxi uploaded on TikTok a video about an old couple’s love story, in which they hold each other’s hands and watch the sunset together. This video has enabled Qiankun Bay to attract great attention on the internet. Moreover, modern elements can be integrated into traditional culture to widely spread local cultures. For example, Lichuan in Hubei Province adapted the folk song Dragon Boat Tune and Body-patting Dance on the national list of intangible cultural heritage by incorporating trendy elements on TikTok while retaining the traditional essence, making them popular with young people. Creating cultural and creative “super IP” Under the new development pattern, the cultural and creative industries need to build more brands, create “super IP” and increase the value of IP. IP literally means intellectual property. It can be a story, an image, an artwork or even a kind of pop culture. The key to creating cultural and creative “super IP” lies in the development of derivative products, extension of diversified scenarios and design of serialized products. Since one kind of cultural IP tends to have the same design concept, serialized cultural and creative products can not only arouse people’s interest of purchase and collection, but also make them better understand the culture behind the products. Therefore, the cultural and creative IP can produce synergistic effects of culture and business, and its value output can be enhanced. Taking the Palace Museum’s cultural and creative IP as an example, a series of Palace Museum cultural and creative souvenirs, Palace Museum cultural and creative furniture products, Palace Museum themed hotels, etc., have been developed, focusing on the cultural connotation and functions and trying to making interesting products. These attempts have extended the Palace Museum’s cultural and creative industries chain, expanded the space for the development of the IP, and attracted many domestic and foreign tourists, setting a good example of building cultural and creative IP under the new development pattern. In addition, since “super IP” development is impossible without product promotion, it’s necessary to make full use of various new technologies to increase brand influence and enhance the value of IP. For example, the Palace Museum has launched a mobile phone application and a WeChat mini program, and registered accounts on social media such as TikTok, held activities such as the Chinese New Year campaign in the Forbidden City and appreciating lanterns in the Lantern Festival, filmed the documentary Masters in the Forbidden City and the variety show National Treasure together with the film-television industry, and conducted crossover cooperation with Daoxiang Village in the food industry, Harper’s Bazaar in the fashion industry, and Love Nikki-Dress UP Queen in the game industry, thus innovating the entire industry chain of the IP. Paying attention to spatial extension Under the new development pattern, urban construction has entered a fast track, and a number of new growth poles will come into being. Therefore, the cultural and creative industries need to pay attention to spatial extension, interact with spatial structure renewal in urban areas and revitalization campaigns in rural areas, and make cities more creative and the countryside more beautiful, so as to satisfy people’s demands and pursuit of a better life. On one hand, by shifting from indoor to outdoor, we should try to conduct creative and cultural activities in a larger open space. On the other hand, by moving activities from a remote place to a local one, we can hold festivals at nearby places to integrate culture and creativity into daily life. Meanwhile, the cultural and creative industries should try to continue the urban context and inherit the industrial heritage. Under the new development pattern, we should also maintain the historical heritage while developing urban metropolitan areas. As a product of modern industrial civilization, the industrial heritage has profound historical and cultural values and spiritual aesthetic significance. It can better meet the demands of the cultural and creative industries in all aspects, and continue to inject vitality into urban renewal. Finally, to increase revenue, we should try the best to integrate space functions. Intensive, synergetic and integrated development ideas will underlie all industries including cultural and creative industries under the new development pattern. For example, the Mirror Garden near the Hongkou Football Stadium Business District is an immersive restaurant of Chinese aesthetics that integrates dining, business meetings, gatherings of relatives and friends, furniture sales, decoration and design. It creates the atmosphere of “no clamour from carts or horses amidst human bustle,” and the customers seem to enter a paradise and indulge themselves in it. Another example is the Tsutaya Books mentioned earlier. In addition to selling low-margin books, it also sells high-margin products, such as 3,600-yuan foundation brushes imported from Japan and 150,000-yuan Huizhou Tangchi inkstones. Professional consultants in the book store provide guidance and help consumers make the right choice. Promoting cultural and creative products to go global Under the new development pattern with duel economic cycles, cultural and creative enterprises need to not only focus on the domestic economic cycle, but also think globally, pay attention to the international economic cycle, and actively promote cultural and creative products to go global. It is necessary to make strategic adjustments, shifting from being forced to get involved in the global industrial chain to actively seeking changes and leading and driving the development of global cultural and creative industries. Mobile game companies in the cultural and creative industries set a good example. Leading enterprises such as Tencent, NetEase, 37 Interactive Entertainment, Perfect World Games and Ourpalm have sought overseas expansion by authorized agents and platform-based operations. Among them, Tencent has created a cultural and creative industries chain composed of digital culture including games, film and television, animation, e-sports and net literature, and formed a cultural and creative ecosystem with IP at the core. On one hand, Tencent has been exploring the cultural and commercial values of IP, while launching the game The Glory of Kings and its overseas version Arena of Valor, the animation Little Fox Demon Matchmaker, the movie The Tibetan Code, etc., to build Chinese cultural symbols with international competitiveness. On the other hand, it has invested in and made mergers and acquisitions of cultural and creative companies worldwide in the fields of games and live streaming, and shifted from product export to capital export. As China’s cultural and creative sector goes global, it not only helps enhance the country’s capabilities of cultural export, cultural feedback and cultural iteration globally, but also opens up the “Conception and Governor vessels” of economic hard power and cultural soft power, greatly improving comprehensive national strength. Nowadays, people have higher requirements for life quality. Apart from a more stable job, a better income, more reliable social security, better education, improved medical and health services and a more comfortable living environment, they are also in pursuit of a better spiritual and cultural life and a more beautiful environment. The cultural and creative industries, as the mainstay of a better spiritual and cultural life and a more beautiful living environment, should ride on the wave of national policy support, take advantage of the new development pattern of duel economic cycles and seek high-quality, connotative development. (Cao Yixia, Deputy Director of the Cultural and Creative Industries Research Office of Shanghai Academy of Social Sciences, and a postdoctoral researcher at Shanghai Jiao Tong University; Chen Xinxin, a post-graduate student at the School of Economics of Fudan University)