Page 242 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
2.6 Marketing
Background May was 5.898 trillion yuan, up by 8.5 percent year-on-
year. In the first five months of 2017, the national online
The total retail sales of consumer goods in retail sales of goods and services was 2.466 trillion yuan,
2016 reached 17.24 trillion yuan, up by 9.6 increased 32.5 percent year-on-year. Of which, the online
percent year-on-year. Of which, the online retail sales of retail sales of physical goods was 1.880 trillion yuan, an
physical goods was 33.23 trillion yuan, increased 28.6 increase of 26.5 percent (accounting for 13.2 percent of
percent, accounting for 13.8 percent of the total retail the total retail sales of consumer goods). Of the online
sales of consumer goods. Of the online retail sales of retail sales of physical goods, food, clothing and other
physical goods, food, clothing and other commodities commodities went up by 21.5 percent, 20.6 percent and
went up by 25.1 percent, 20.8 percent and 31.8 percent 29.2 percent respectively (Nat Bur Stat, June 2017).
respectively (Nat Bur Stat, Jan. 2017). The data showed
strong consumption potential in rural areas, with retail According to Guangzhou Blue Paper: Guangzhou
sales expanding 10.9 percent, outpacing the 10.4 percent Commerce and Trade Development Report 2017, in
rate in urban areas. Sales of communication equipment 2016, the total retail value of consumption products in
jumped 11.9 percent year-on-year, furniture went up Guangzhou amounted to 870.65 billion yuan, ranking
12.7 percent, and building and decoration materials third place in the country for 29 consecutive years with
climbed 14 percent. The catering industry garnered 3.58 a 9 percent increase from the previous year. Guangzhou’s
trillion yuan in revenue in 2016, up 10.8 percent year-on- retail and wholesale value reached 5.597 trillion yuan, an
year. Online sales boomed, surging 26.2 percent year- increase of 10 percent, which also ranked the first among
on-year to reach 5.16 trillion yuan. Per capita spending China’s first-tier cities. In 2016, Guangzhou led China in
was 17,111 yuan, representing a nominal growth of 8.9 reform and innovation of domestic and foreign trade.
percent year-on-year, though real growth was 6.8 percent E-commerce, cross-border e-commerce, and service trade
after deducting price factors (Song, China Retail). By May maintained rapid growth. Cross-border e-commerce was
of 2017, the total retail sales of consumer goods reached ranked first in terms of business scale. It is expected that
2.946 trillion yuan, up by 10.7 percent year-on-year. The in 2017, Guangzhou’s trade and commerce will maintain
retail sales of consumer goods in urban areas was 2.536 steady growth and total retail value of consumption
trillion yuan, up by 10.4 percent year-on-year, while rural goods will reach 940 billion yuan with a year-on-year
areas increased 12.7 percent to 409.9 billion yuan year- increase of 8 percent (Zhou).
on-year. From January to May 2017, the retail sales of
consumer goods in urban areas increased 10 percent Direct Marketing
to 12.224 trillion yuan up year-on-year; while rural areas
increased 12.2 percent to 2.032 trillion yuan year-on-year Chinese regulators define direct selling as a type
(Song, China Retail). of business model “involving the recruitment of direct
marketing sales agents or promoters and the selling
In terms of different consumption patterns, the of products to end-consumers outside fixed business
catering services gained 321.1 billion yuan by May 2017, locations or outlets”(China-Direct). China has a long history
up by 11.6 percent, year-on-year. The retail sales of goods of conflict with the multilevel marketing industry and
gained 2.625 trillion yuan, up by 10.6 percent. In the actually banned it in 1998. The Chinese government lifted
first five months of 2017 the catering services gained the ban and agreed to allow market access for wholesale
1.529 trillion yuan, up by 11.0 percent year-on-year. The or retail trade services away from a fixed location as part
retail sales of goods gained 12.727 trillion yuan, up by of China‘s WTO commitment. These new regulations,
10.2 percent. In the first five months of 2017, the retail however, are extensively restrictive, especially in regards
sales amount of goods of units above designated size in to multi-level marketing (MLM) organizations, which are
242
2.6 Marketing
Background May was 5.898 trillion yuan, up by 8.5 percent year-on-
year. In the first five months of 2017, the national online
The total retail sales of consumer goods in retail sales of goods and services was 2.466 trillion yuan,
2016 reached 17.24 trillion yuan, up by 9.6 increased 32.5 percent year-on-year. Of which, the online
percent year-on-year. Of which, the online retail sales of retail sales of physical goods was 1.880 trillion yuan, an
physical goods was 33.23 trillion yuan, increased 28.6 increase of 26.5 percent (accounting for 13.2 percent of
percent, accounting for 13.8 percent of the total retail the total retail sales of consumer goods). Of the online
sales of consumer goods. Of the online retail sales of retail sales of physical goods, food, clothing and other
physical goods, food, clothing and other commodities commodities went up by 21.5 percent, 20.6 percent and
went up by 25.1 percent, 20.8 percent and 31.8 percent 29.2 percent respectively (Nat Bur Stat, June 2017).
respectively (Nat Bur Stat, Jan. 2017). The data showed
strong consumption potential in rural areas, with retail According to Guangzhou Blue Paper: Guangzhou
sales expanding 10.9 percent, outpacing the 10.4 percent Commerce and Trade Development Report 2017, in
rate in urban areas. Sales of communication equipment 2016, the total retail value of consumption products in
jumped 11.9 percent year-on-year, furniture went up Guangzhou amounted to 870.65 billion yuan, ranking
12.7 percent, and building and decoration materials third place in the country for 29 consecutive years with
climbed 14 percent. The catering industry garnered 3.58 a 9 percent increase from the previous year. Guangzhou’s
trillion yuan in revenue in 2016, up 10.8 percent year-on- retail and wholesale value reached 5.597 trillion yuan, an
year. Online sales boomed, surging 26.2 percent year- increase of 10 percent, which also ranked the first among
on-year to reach 5.16 trillion yuan. Per capita spending China’s first-tier cities. In 2016, Guangzhou led China in
was 17,111 yuan, representing a nominal growth of 8.9 reform and innovation of domestic and foreign trade.
percent year-on-year, though real growth was 6.8 percent E-commerce, cross-border e-commerce, and service trade
after deducting price factors (Song, China Retail). By May maintained rapid growth. Cross-border e-commerce was
of 2017, the total retail sales of consumer goods reached ranked first in terms of business scale. It is expected that
2.946 trillion yuan, up by 10.7 percent year-on-year. The in 2017, Guangzhou’s trade and commerce will maintain
retail sales of consumer goods in urban areas was 2.536 steady growth and total retail value of consumption
trillion yuan, up by 10.4 percent year-on-year, while rural goods will reach 940 billion yuan with a year-on-year
areas increased 12.7 percent to 409.9 billion yuan year- increase of 8 percent (Zhou).
on-year. From January to May 2017, the retail sales of
consumer goods in urban areas increased 10 percent Direct Marketing
to 12.224 trillion yuan up year-on-year; while rural areas
increased 12.2 percent to 2.032 trillion yuan year-on-year Chinese regulators define direct selling as a type
(Song, China Retail). of business model “involving the recruitment of direct
marketing sales agents or promoters and the selling
In terms of different consumption patterns, the of products to end-consumers outside fixed business
catering services gained 321.1 billion yuan by May 2017, locations or outlets”(China-Direct). China has a long history
up by 11.6 percent, year-on-year. The retail sales of goods of conflict with the multilevel marketing industry and
gained 2.625 trillion yuan, up by 10.6 percent. In the actually banned it in 1998. The Chinese government lifted
first five months of 2017 the catering services gained the ban and agreed to allow market access for wholesale
1.529 trillion yuan, up by 11.0 percent year-on-year. The or retail trade services away from a fixed location as part
retail sales of goods gained 12.727 trillion yuan, up by of China‘s WTO commitment. These new regulations,
10.2 percent. In the first five months of 2017, the retail however, are extensively restrictive, especially in regards
sales amount of goods of units above designated size in to multi-level marketing (MLM) organizations, which are
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