Page 320 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
incomes of rural residents, there was an obvious consumption scenarios, thus offering tremendous
trend in local consumption upgrade. New home investment opportunities. Comprehensive shopping
appliances including solar water heaters, water centers, department stores and other brick-and-
purifiers and robotic mops have gradually entered mortar stores are reviving from the impact of the
the rural market, becoming household essentials, pandemic with high-end shopping malls even seeing
especially for young people. From the demand a significant increase in sales. Consumer confidence
side, digital retail helped raise farmers' revenue is recovering gradually. Some luxury brands are
from agricultural products and thus increased even expanding their businesses, indicating that the
their purchasing power. Every additional 10,000 retail sector is full of vitality. Although it may take
RMB (US$1,545) of agricultural product income of a while for conventional commercial properties
farmers generates spending of 3,528 RMB, among to reach pre-COVID-19 levels, positive signs are
which 1,131 RMB goes to online consumption. With everywhere. For example, there is rapid growth in
the expanding coverage of e-commerce in China's sales of some domestic duty-free stores. Retail sales
rural areas, the strong technology and logistics are likely to see a further increase as household
ability enables e-commerce platforms to help disposable incomes continue to swell and policy
promote the industrialization and standardization initiatives effectively boost spending. With the rapid
of the country's agricultural development. The growth of China's economy, people are paying
e-commerce platforms' technologies, such as more attention to improving their quality of life.
artificial intelligence, big data and internet of Both domestic and overseas retailers and retail
things, together with their marketing channel property operators are constantly innovating and
abilities and image building abilities, empowered controlling product and service quality to meet the
rural areas and helped create modernized, ever-changing tastes of Chinese consumers. In the
standardized and intelligent farms. Digital retail meantime, smart technology and groundbreaking
has made it possible for agricultural products to retail models are driving innovative development
be distributed directly from their place of origin, in the retail market in China, making the customer
saving use of intermediate distribution links. As consumption experience much more pleasant. In
a result, agricultural products are more price fact, such notions have already been acknowledged
competitive, and farmers' incomes are rising. by retailers as 67% of shopping centers, department
China's 14th Five-Year Plan (2021-25) envisages stores and outlets in China's first and second-tier
enlarging the coverage of e-commerce in China's cities have installed smart shopping guide systems in
rural areas (Zheng). 2020. The integration of online and offline channels
is extremely important for commercial properties.
Retail and Vending Shopping malls are staying in lockstep with young
consumers by continually adjusting and upgrading
In the past few decades, China has quickly their brands and trying to attract more new and
caught up with its international counterparts in trendy stores, in order to make their offerings
retail properties, and the sector is further evolving unique and wide-ranging (Wang, Retail sector).
and diversifying in accordance with the needs of
Chinese consumers. Under the dual-circulation China's retail sales are expected to reach
development pattern, various retail properties— 50 trillion RMB (US$7.72 trillion) by 2025, an
including department stores, shopping malls, expected average annual growth of 5% for the
commercial complexes, duty-free shopping sites 14th Five-Year Plan period. China has vowed to
and outlets—are welcoming new opportunities in build a strong domestic market with new steps
the world's second-largest economy. Contribution to promote a higher level of opening-up during
of consumption has accounted for more than half the 2021-2025 period. China will work to play a
of China's economy, with more diversified demand better role in global economic governance and
emerging from dual-circulation, urbanization enhance its capacity to prevent and defuse risks,
and consumption upgrades. The development of according to the plan. In addition to 2021-2025
modern commercial facilities will further exploit development targets, the plan also provided an
consumption demand by providing multiple outlook for higher quality commerce growth in
2035 (Xinhua, China eyes).
320
incomes of rural residents, there was an obvious consumption scenarios, thus offering tremendous
trend in local consumption upgrade. New home investment opportunities. Comprehensive shopping
appliances including solar water heaters, water centers, department stores and other brick-and-
purifiers and robotic mops have gradually entered mortar stores are reviving from the impact of the
the rural market, becoming household essentials, pandemic with high-end shopping malls even seeing
especially for young people. From the demand a significant increase in sales. Consumer confidence
side, digital retail helped raise farmers' revenue is recovering gradually. Some luxury brands are
from agricultural products and thus increased even expanding their businesses, indicating that the
their purchasing power. Every additional 10,000 retail sector is full of vitality. Although it may take
RMB (US$1,545) of agricultural product income of a while for conventional commercial properties
farmers generates spending of 3,528 RMB, among to reach pre-COVID-19 levels, positive signs are
which 1,131 RMB goes to online consumption. With everywhere. For example, there is rapid growth in
the expanding coverage of e-commerce in China's sales of some domestic duty-free stores. Retail sales
rural areas, the strong technology and logistics are likely to see a further increase as household
ability enables e-commerce platforms to help disposable incomes continue to swell and policy
promote the industrialization and standardization initiatives effectively boost spending. With the rapid
of the country's agricultural development. The growth of China's economy, people are paying
e-commerce platforms' technologies, such as more attention to improving their quality of life.
artificial intelligence, big data and internet of Both domestic and overseas retailers and retail
things, together with their marketing channel property operators are constantly innovating and
abilities and image building abilities, empowered controlling product and service quality to meet the
rural areas and helped create modernized, ever-changing tastes of Chinese consumers. In the
standardized and intelligent farms. Digital retail meantime, smart technology and groundbreaking
has made it possible for agricultural products to retail models are driving innovative development
be distributed directly from their place of origin, in the retail market in China, making the customer
saving use of intermediate distribution links. As consumption experience much more pleasant. In
a result, agricultural products are more price fact, such notions have already been acknowledged
competitive, and farmers' incomes are rising. by retailers as 67% of shopping centers, department
China's 14th Five-Year Plan (2021-25) envisages stores and outlets in China's first and second-tier
enlarging the coverage of e-commerce in China's cities have installed smart shopping guide systems in
rural areas (Zheng). 2020. The integration of online and offline channels
is extremely important for commercial properties.
Retail and Vending Shopping malls are staying in lockstep with young
consumers by continually adjusting and upgrading
In the past few decades, China has quickly their brands and trying to attract more new and
caught up with its international counterparts in trendy stores, in order to make their offerings
retail properties, and the sector is further evolving unique and wide-ranging (Wang, Retail sector).
and diversifying in accordance with the needs of
Chinese consumers. Under the dual-circulation China's retail sales are expected to reach
development pattern, various retail properties— 50 trillion RMB (US$7.72 trillion) by 2025, an
including department stores, shopping malls, expected average annual growth of 5% for the
commercial complexes, duty-free shopping sites 14th Five-Year Plan period. China has vowed to
and outlets—are welcoming new opportunities in build a strong domestic market with new steps
the world's second-largest economy. Contribution to promote a higher level of opening-up during
of consumption has accounted for more than half the 2021-2025 period. China will work to play a
of China's economy, with more diversified demand better role in global economic governance and
emerging from dual-circulation, urbanization enhance its capacity to prevent and defuse risks,
and consumption upgrades. The development of according to the plan. In addition to 2021-2025
modern commercial facilities will further exploit development targets, the plan also provided an
consumption demand by providing multiple outlook for higher quality commerce growth in
2035 (Xinhua, China eyes).
320
