- Sales of consumer goods in China surpass US$5.5 trillion in 2018 as trend continues
- Lower-tier cities account for increasing share of growth
- Consumer spending contributed 76% of GDP
NANJING, China, Dec. 5, 2019 /PRNewswire/ -- Suning Holdings Group's latest Consumption Upgrade Report, in partnership with the International Monetary Institute of Renmin University of China, shows total retail sales of consumer goods surpassed US$5.5 trillion in 2018, only slightly lower than the United States (US$6 trillion), with lower-tier cities now accounting for a larger percentage of growth
The report by the commercial giant ranked second among the top 500 non-state-owned enterprises in China, with annual revenues of around EUR 77 billion, confirms that China has become one of the leading consumption countries worldwide. It also reveals that consumption is the primary driver of economic growth, with consumer spending contributing 76% of GDP in 2018, driving GDP growth of 5%.
The Consumption Upgrade Report focuses on 4 key themes:
1. An overview of the phenomenon of the Chinese consumption upgrade.
2. An analysis of consumption upgrade by category, especially in China's lower-tier cities.
3. An explanation of the consumption changes witnessed in 2019.
4. A new consumption upgrade index for 2019.
In recent years, new trends have emerged in China's consumption market, leading the tremendous change of consumption structure and improving people's consumption quality. The growing middle-class population has become an important driving force for promoting the quality of Chinese consumption. In addition, the lower-tier cities market now accounts for a larger contribution of the consumption upgrade.
Fu Yifu, the director of Suning Institute of Finance (SIF), said: "The growth rate of per capita disposable income of rural residents has been significantly higher than that of urban residents. Correspondingly, the growth rate of per capita consumption expenditure of rural residents is also higher than that of urban residents. With less pressure on mortgage, rent and car loans, consumers in lower cities and rural areas are more confident on consumption."
According to Suning's report, the consumption upgrade in China primarily reflects three trends. Firstly, the development of cross-border e-commerce has popularized the domestic consumption market, while residents in tier-three and tier-four cities have unleashed greater consumption energy than those in tier-one and tier-two cities.
Secondly, the development of consumption in lower cities has improved residents' quality of life and boosted the dramatic growth of technological products. Thirdly, entertainment consumption has surged, especially video games, live streams, micro-videos, online reading and online music.
Based on Suning big data, SIF has published the 'Chinese Consumption Upgrade Report' every year since 2017. The report introduced scientific measures for analyzing the consumption upgrading level in China, discovers consumption potential from data and explores trends in consumption changes among Chinese consumers.
About Suning Holdings Group:
Founded in 1990, Suning is one of the leading commercial enterprises in China with two public companies in China and Japan. In 2019, Suning Holdings Group ranked as the top three brands among the top 500 non-state-owned enterprises in China with annual revenues of RMB 602.5 billion (approximately EUR 77.24 billion) and continued to top the list of Internet retailing category. Adhering to the enterprise mission of "Leading the Ecosystem across Industries by Creating Elite Quality of Life for All", Suning has strengthened and expanded its core business as retail through a corporate ecosystem comprised by multiple vertical industries, including commercial real estate, financial services and sports. Suning.com, the main subsidiary pioneering in online and offline retailing, has been listed in the Fortune Global 500 for three successive years from 2017 to 2019.
SOURCE Suning Holdings Group