Heterogeneous Analysis of RMI on Urban Consumption Vitality: An Empirical Study Based on Panel Data of 50 Cities

Abstract

Deepening domestic demand drives high-quality urban development. However, some lower-tier cities blindly introduce high-end brands, causing a spatial mismatch. This creates a severe gap between commercial supply and local purchasing power. Based on the Spatial Mismatch and Bottom of the Pyramid (BOP) theories, panel data from 50 Chinese cities (2022-2024) and spatial data of retail stores are utilized. A “Relative Mass-market Index” (RMI) is innovatively constructed. A Pooled OLS model is adopted to test how supply structure fit affects macro consumption. It is found that this activation effect is highly asymmetric. In lower-tier markets, the “downward compatibility” of mass-market retail generates a strong “filling effect,” significantly increasing per capita retail sales. In mature markets, due to a saturated retail ecosystem, the index adjustment exhibits “elasticity desensitization.” The conclusion confirms that high-quality mass-market retail acts as “new infrastructure” for lower-tier markets. It provides an important decision-making basis for local governments to abandon blindly upgrading commercial districts and to implement city-specific policies to unleash long-tail consumption benefits.