Page 290 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
2.11 Consumer Goods
Key Take-Aways Background
Chinese consumers are among China’s consumption market is expected to
the world’s most health- remain stable and grow in in 2020, pushed by
conscious due to rapid growth and considerable the country’s steady job market and tax cut
lifestyle changes. In all markets they are seeking measures, as well as the new round of reform
products to make them feel and look healthy and opening-up. As a major driver of the national
and happy, to the point where 73 percent of economy, China saw retail sales of consumer
consumers are willing to pay more for products goods jump 8.4 percent year-on-year to US$2.83
which are deemed healthier. This move towards trillion in the first half of 2019, a positive sign
healthier options has seen consumers interested highlighting the country’s rising spending power
in trying non-dairy alternatives. despite a complex global economic situation with
increasing external uncertainties. In addition
Coffee in China is truly one of the world’s to witnessing strong online sales, the growth in
greatest retail growth opportunities. Coffee sales goods used for daily lives remained encouraging
in are expected to grow significantly to 5.5 cups during the same period. For the next step, the
per capita per year in 2023. The market has grown government should continue to optimize the
from 15.6 billion yuan in 2013 to 56.9 billion yuan operational mechanism of its consumption
in 2018, and is estimated to reach 180.6 billion system, speed up the transformation of old urban
yuan in 2030. residential areas and implement other policies
to further stimulate the potential of domestic
China’s textile industry now is the world’s consumption, as well as create more jobs in both
largest in scale and most comprehensive in urban and rural areas. As China officially gave
capacity, covering the whole value chain, from the green light to 5G commercial services in June
raw materials, R&D, textile processing, apparel 2019, a new round of consumption demand was
manufacturing and operations, and retail. 2018 expected to be stimulated in the second half of
saw China process 54.6 million tons of fiber, half 2019. Consumption of high-definition televisions,
the world’s total, and export US$276.73 billion in intelligent home appliances, virtual-reality and
textiles and apparel, 36 percent of the world total. augmented-reality products will continue to grow
in 2020. The growth in these specific areas will not
China is expected to overtake the United States only occur in the home market, but also in global
as the largest fashion market by 2020. The wealth markets, especially those economies participating
of China’s nearly 1.4 billion people saw rapid in the Belt and Road Initiative (China Daily).
increase, creating new consumer groups who
have capacity to spend on sports, entertainment, The quality of consumption has been further
clothes and shoes—and it’s shaping the way improved, with personalized, diversified
the fashion industry operates. Thanks to the and customized consumption burgeoning.
ascendance of China’s younger shoppers, as Consumption now contributed over 76 percent
well as policies unveiled by the government to to China’s economic growth in 2018, remaining
encourage domestic consumption, much of that the primary driver of economic growth. The
spending is moving back inside the country. growth of total retail sales was in line with China’s
290
2.11 Consumer Goods
Key Take-Aways Background
Chinese consumers are among China’s consumption market is expected to
the world’s most health- remain stable and grow in in 2020, pushed by
conscious due to rapid growth and considerable the country’s steady job market and tax cut
lifestyle changes. In all markets they are seeking measures, as well as the new round of reform
products to make them feel and look healthy and opening-up. As a major driver of the national
and happy, to the point where 73 percent of economy, China saw retail sales of consumer
consumers are willing to pay more for products goods jump 8.4 percent year-on-year to US$2.83
which are deemed healthier. This move towards trillion in the first half of 2019, a positive sign
healthier options has seen consumers interested highlighting the country’s rising spending power
in trying non-dairy alternatives. despite a complex global economic situation with
increasing external uncertainties. In addition
Coffee in China is truly one of the world’s to witnessing strong online sales, the growth in
greatest retail growth opportunities. Coffee sales goods used for daily lives remained encouraging
in are expected to grow significantly to 5.5 cups during the same period. For the next step, the
per capita per year in 2023. The market has grown government should continue to optimize the
from 15.6 billion yuan in 2013 to 56.9 billion yuan operational mechanism of its consumption
in 2018, and is estimated to reach 180.6 billion system, speed up the transformation of old urban
yuan in 2030. residential areas and implement other policies
to further stimulate the potential of domestic
China’s textile industry now is the world’s consumption, as well as create more jobs in both
largest in scale and most comprehensive in urban and rural areas. As China officially gave
capacity, covering the whole value chain, from the green light to 5G commercial services in June
raw materials, R&D, textile processing, apparel 2019, a new round of consumption demand was
manufacturing and operations, and retail. 2018 expected to be stimulated in the second half of
saw China process 54.6 million tons of fiber, half 2019. Consumption of high-definition televisions,
the world’s total, and export US$276.73 billion in intelligent home appliances, virtual-reality and
textiles and apparel, 36 percent of the world total. augmented-reality products will continue to grow
in 2020. The growth in these specific areas will not
China is expected to overtake the United States only occur in the home market, but also in global
as the largest fashion market by 2020. The wealth markets, especially those economies participating
of China’s nearly 1.4 billion people saw rapid in the Belt and Road Initiative (China Daily).
increase, creating new consumer groups who
have capacity to spend on sports, entertainment, The quality of consumption has been further
clothes and shoes—and it’s shaping the way improved, with personalized, diversified
the fashion industry operates. Thanks to the and customized consumption burgeoning.
ascendance of China’s younger shoppers, as Consumption now contributed over 76 percent
well as policies unveiled by the government to to China’s economic growth in 2018, remaining
encourage domestic consumption, much of that the primary driver of economic growth. The
spending is moving back inside the country. growth of total retail sales was in line with China’s
290
