To meet consumers' demand for convenience, quality and prices, new retail formats have emerged, such as specialty stores focusing on one variety, combination stores, duty-free stores, membership clubs and boutique supermarkets.
In 2016, total retail sales of consumer goods in China amounted to CNY 33,231.6 billion, increasing by 10.4% YOY. Urban retail sales was CNY 28,581.4 billion, increasing by 10.4% YOY and rural retail sales was CNY 4,650.3 billion, increasing by 10.9% YOY. In terms of consumption types, the sales of the catering industry was CNY 3,579.9 billion, increasing by 10.8% YOY and that of merchandise was CNY 29,651.8 billion, increasing by 10.4% YOY.
In 2016, online retail sales reached CNY 5,155.6 billion, increasing by 26.2% YOY. Among online retail sales, CNY 4,194.4 billion were physical goods, increasing by 25.6% and accounting for 12.6% of the total retail sales of consumer goods. Online sales of food, clothing and daily goods increased by 28.5%, 18.1% and 28.8%, respectively. The import and export value of cross-border e-commerce was CNY 6.5 trillion with an annual growth rate of over 30%. The growing cross-border shopping market has prompted many e-commerce and traditional retail leaders to step into the cross-border business.
According to this report, in 2017, the growth of China's retail industry will slow down, rental and labor costs will go up while interest rates will go down. These will intensify industry consolidation and increase the market concentration rate. Meanwhile, the integration of online and offline channels will be highlighted.