China, the e-commerce sector continues with the slowdown

23/08/2019

 

Online retail sales in China increased by 17.8% year-on-year in the first four months of 2019

 

China’s online retail sales increased by 17.8% YoY to RMB 4.8 trillion ($ 684 billion) in the first half of this year, according to official data. The annual growth rate of the Chinese e-commerce market has stabilized at around 20% after falling by constant figures of over 30%.

Online retail sales in China increased 17.8% year-on-year in the first four months of 2019, down from 32.4% in the same period last year, according to the China National Bureau of Statistics.

Ministry spokesman Gao Feng of Chinese Commerce said: “As China’s economic growth shifts from high-speed to high quality and Chinese Internet users’ growth dividends fade away, the gradual slowdown in online retail spending adapts to the economic development model”.

 

Business-to-customer (B2C) sales represent just over three-quarters of total retail sales

 

Of the total, online retail sales of physical goods amounted to 3.82 trillion RMB for the first six months, an increase of 21.6% over the previous year and representing 19.6% of total sales retail in the country.

Business-to-customer (B2C) sales represent just over three-quarters of total retail sales, an increase of 4.1 percentage points compared to last year. Eastern, central, western and north-eastern China represent 83.2%, 9.6%, 5.9% and 1.3% of total online sales in the country respectively. The growth rates of each region were 17.8%, 35.4%, 13.9% and 20.6%.

 

Online retailing is moving towards detection and personalization

 

Fresh foods, cosmetics and pet supplies are the most popular categories for online shoppers in big cities, while clothing, car accessories and appliances are favored in rural markets.

Rural e-commerce and cross-border e-commerce continue to be the main sales drivers. Furthermore, online retailing is moving towards identification and personalization.

Confirmation is that the Chinese online retail market has expanded rapidly for over a decade. In 2018, China’s online retail spending exceeded 9 trillion RMB and ranked number one globally for six consecutive years.

 

 

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