China's consumer market estimated to grow $1.8T
- By Gong Jie
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E-mail China.org.cn, June 28, 2017
China's GDP growth may be slowing down, but its consumer economy is still growing fast.
China's consumer market is growing at an annual rate of 10 percent in recent years, outpacing any other country in the world, according to a report released by the U.S. Boston Consulting Group and AliResearch (research arm of China's Alibaba Group) at the 2017 Summer Davos in Dalian.
By 2021, China's consumer market is expected to increase by US$1.8 trillion – roughly the size of Germany's consumer economy today. A quarter of the total consumption growth in major economies is coming from China.
China, the world's second largest economy, thus represents one of the biggest opportunities for consumer companies in the world for the foreseeable future.
The report names three principle factors behind this rapid growth. China's consumer market is benefitting from an emerging upper-middle class and an increasing number of affluent consumers, the new generation of consumers and online shopping.
Jeff Walters, one of the authors of the report, noticed that in addition to the expanding consumer market, Chinese consumers are also gradually buying more high quality products.
"Digital technology is the main factor to boost the growth of consumption. Compared with other countries, the ratio of online consumption is higher in China," he said.
According to Gao Hongbing, vice president of the Alibaba Group and head of AliResearch, the internet is not only a sales channel in China, but also exerts a strong influence on consumers' purchasing decisions.
"The influence of the internet to the consumers will be even stronger in the future, and consumers will use it to find the products they need and also for purposes of price and quality comparisons," he added.
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