China to overtake the US to become the world’s largest retail market in 2019

[beijingwalker]

China to be World’s Largest Retail Market in 2019
February 6, 2019

China will overtake the US to become the world’s largest retail market in 2019, according to a new report from the market research firm eMarketer.

According to the report, retail spending in China will grow by 7.5 percent this year to hit over US$5.64 trillion.

Retail spending in the US, meanwhile, is projected to grow by 3.3 percent to reach US$5.53 trillion.

Despite a slowing economy and the ongoing US-China trade war, the popularity of e-commerceand rising spending in lower tier cities is set to help China’s retail sector overcome rising macroeconomic risks.

Continued e-commerce growth
China’s faster-than-expected retail growth is partly due to the continued explosion of e-commerce.

eMarketer expects e-commerce to account for a stunning 35 percent of retail spending in China, which is equivalent to about US$2 trillion – over half of all e-commerce sales globally.

In contrast, e-commerce in the US is projected to account for just 11 percent of retail sales.

The scale of China’s e-commerce sector can be seen in the annual Singles Day shopping festival.

Despite slowing economic growth, the e-commerce behemoth Alibaba still managed to register a record US$30.8 billion in sales during the latest Singles Day festival in November.

The persistent growth of e-commerce in China bodes well for platform operators.

Nevertheless, while established e-commerce giants like Alibaba and JD.com are expected to post strong growth numbers, eMarketer expects their market share to be gradually eroded by smaller upstarts like Pinduoduo.

Per the report, Alibaba and JD.com will have year-on-year sales increases of 19.2 percent and 29.7 percent, respectively, while Pinduoduo – China’s third largest e-commerce platform – will increase sales by 100.8 percent.

Long-term potential of China’s lower tier cities
Amid a slowing economy, retail sales growth in China is also expected to decelerate in the coming years.

Still, the eMarketer report expects retail sales growth to continue to outpace that of the US until at least 2022, thereby widening China’s lead as the world’s largest retail market.

While China’s years of breakneck growth may be coming to an end, the country’s lower tier cities continue to boast untapped potential.

For example, Alibaba’s latest earnings report stated that 70 percent of new users of its retail marketplaces came from third and lower tier cities.

Likewise, the investment bank Morgan Stanley projects that consumption levels in China’s smaller cities could triple from their 2018 levels by 2030.

Moreover, China’s young shoppers – who are notably less thrifty than previous generations – will continue to propel consumption growth.

A recent report from OC&C Strategy Consultants found that Chinese born 1998 or later account for 15 percent of household spending, compared to just four percent in the US.

Although retail spending is expected to remain steady in 2019, there have been anecdotal reports of “consumption downgrades” across China.

Amid ongoing economic uncertainty, many Chinese consumers may hold off on making big-ticket purchases. For example, car sales in China fell by 5.8 percent in 2018 – the first drop since 1992.

Due to these dynamics, certain retail sub-sectors and products in China may be more successful than others in 2019. Long-term, the sector’s outlook continues to be promising though not immune to macroeconomic risks.

https://www.china-briefing.com/news/china-worlds-largest-retail-market-2019/

 

[beijingwalker]

China is fast changing from the world number one export drive economy into the world number one both export and domestic consumption driven economy.

World biggest trading nation, industrial nation , manufacturing nation and commodity consumption nation... those are heavy weight titles.

 

[zectech]

China is fast changing from the world number one export drive economy into the world number one both export and domestic consumption driven economy.

World biggest trading nation, industrial nation , manufacturing nation and commodity consumption nation... those are heavy weight titles.

USA numba ona exporter of bombs and milorganite. And Mortgage Backed Derivatives. Want junk rated loans repackaged as AAA securities, USA is willing to help you get shafted. Want bombs to bomb yemen, USA can help you out. Want African fecal matter repackaged as plant food, USA can help you out.

Amerika should be declared a toxic waste zone and closed for business.

 

[Beidou2020]

China poised to overtake US as largest consumer market
By Zhang Jie | chinadaily.com.cn | Updated: 2019-12-20 11:21

A girl takes photos at the Hongyadong Scenic Area in Chongqing, Southwest China, on Sept 9. [Photo/Xinhua]
China is expected to surpass the US as the world's largest consumer market this year or next year, said Shanghai Securities News, citing experts on Friday.

In November, the country's retail sales of consumer goods reached 3.81 trillion yuan ($540 billion), realizing an 8 percent increase for the first time since July and a pace of growth rising 0.8 percentage points from October.

Moreover, the figure totaled 37.29 trillion yuan from January to November.

Chinese people spent 33.1 billion yuan on cosmetics, surging 16.8 percent year-on-year in November. In the first eleven months, the figure totaled 270 billion yuan.

Cosmetics are becoming a daily requirement for most people in China, said the newspaper, citing Zhao Ping, director of the international trade research department at the China Council for the Promotion of International Trade Academy.

Makeup for beauty is no longer exclusively for women, with men's cosmetics coming into fashion, Zhao said.

Although the consumer base for men's cosmetics is small, it is seeing rapid growth and maintaining a double-digit increase, Zhao added.

Chinese people's spending on household products is on the rise, especially showing huge potential in fourth- and fifth-tier cities, said Shen Jianguang, vice-president and chief economist at JD Digits.

In 2018, the consumption scale gap between China and the US has narrowed to $280 billion, Zhao said.

China is the world's fastest-growing consumer market, said Guan Lixin, an official with the Ministry of Commerce.

Online sales in the US were $7.4 billion in this year's Black Friday shopping spree, while the figure from Alibaba's platform reached $3.83 billion for the Chinese Singles Day shopping event, Guan said.

In the first 10 months, the consumption growth in Dalian, Xi'an, Changsha and Zhengzhou has been over 25 percent, showing strong power.

Thanks to strong population inflows, the consumption growth from second-tier metropolitan areas has been higher than that from first-tier metropolitan areas, Shen said.

It's noteworthy that the total consumption growth from fourth- and fifth-tier cities has become higher than that from other cities, but the consumption structure in counties should be improved, Shen added.

In the future, China's development will be more driven by domestic demand and consumption with the growth becoming more sustainable, said Fu Linghui, a spokesman with the National Bureau of Statistics.

 

[Beidou2020]

China is fast changing from the world number one export drive economy into the world number one both export and domestic consumption driven economy.

World biggest trading nation, industrial nation , manufacturing nation and commodity consumption nation... those are heavy weight titles.

China is number one in many important areas. Guys like @F-22Raptor is in denial at the power of China.