Should you enter the Chinese Market? Chinese Retail Sales Of Consumer Good Increase Anually

By Richard Hoffmann, ECOVIS Beijing China

Chinese customers seem to become more and more sophisticated and their pockets are getting bigger annually. Knowing that China is still a developing country it must be recognized as an incredible success, that since 1978 more than 500 million people have been lifted out of poverty! The newest stats on retail sales of consumer goods, published by the National Bureau of Statistics of China (2013) and Chinadaily.com.cn (2012) , show the enormous growth of purchasing power inside China.

In the graphic above you can see an increase of 13.3%  in purchasing power, compared to September last year. This is especially interesting as you know that Chinese people not only love making money but also spending it on pricey brands and buying online, which opens incredible opportunities for foreign companies. As foreign brands inside China are mostly over prized, the hunt for high quality products coming from abroad goes on. More than 250 million Chinese are shopping online, which is three times the amount of inhabitants of Germany. Don’t wait to get your feet wet and bring your products to the Chinese customers. They might appreciate it and reward you with new growth.

Urban retail is almost six times the size of rural resident retail which might also be connected to the big income gap between these two groups. Urban residents recognized an increased income of about 9.5% to around 22.000 Yuan per year, whereas rural residents could recognize a higher growth rate of about 12.5 % to around 7600 Yuan per year.

This growth in income is accompanied by rising production costs and a shrinking margin for exported products. On the other hand, this results in amazing opportunities for western companies who bring their products to the Chinese customers quickly.

For any questions concerning bringing your products to China or opening up your own WFOE contact us at Ecovis Beijing. We will be glad to assist you.

Ecovis Beijing