International Business & Economy China will surpass US as the world’s top retail market in 2019:...

China will surpass US as the world’s top retail market in 2019: eMarketer




- Advertisement -

China is expected to surpass US as the world’s number one retail market in 2019, according to a report by the consulting firm eMarketer.

With China’s increasing middle-class population, this would be a factor in having a consumer-driven economy.

Based on the report’s worldwide retail and e-commerce forecast, retail sales in China will reach more than $5.6 trillion this year, a 7.5 percent growth. The US, on the other hand, will have an increase of 3.3 percent to $5.5 trillion.

Photo: Screengrab from YouTube

- Advertisement -

While growth is slowing for both countries, China is expected to overtake the U.S. through 2022, the report noted.

Senior forecasting director of eMarketer Minica Peart said that in recent years, consumers in China have experienced rising incomes, catapulting millions into the new middle class.

E-commerce sales in a global comparison have already been dominated by China, with 35.3 percent of the country’s retail sales set to take place online this year, eMarketer said comparing to 10.9 percent in the US.

In annual retail spending, US still dominates with projected sales of $16,661 this year. China’s projection this year is $4,056.

In 2019, the Asian country’s e-commerce sales are projected to reach $1.9 trillion. By the end of the year, 55.8 percent of the world’s online retail sales will be coming from China, the report claimed.

China has become a market for global brands, though statistically, the country is already the world’s largest market for cars and smartphones.

China’s rise to being the leader in retail sales took years, as Peart said: “It has really picked up in the last three to five years.”

Over the years, the Chinese government exerted effort to change the country’s economy from factory exports and commercial and residential investment to consumption.

Urbanization became the trend when millions of Chinese workers have moved from the rural areas. Workers then received significant wage increases.

The report also stated that the biggest e-commerce companies Alibaba and played a significant role in retail growth. However, Alibaba, having the 53.3 percent of the e-commerce sales this year, has experienced a decline due to the increasing number of smaller players, such as social commerce platform Pinduoduo.

Alibaba’s Singles Day 2018. (Photo: Screengrab from YouTube)

Significantly, Alibaba’s Singles Day, an annual online spending blitz, brings off bigger sales than Black Friday and Cyber Monday combined.

A year ago, Tencent and three other companies invested $5 billion in China’s biggest mall operator, Wanda Commercial Properties. Tencent is the owner of top messaging app WeChat and a major shareholder in JD.

In 2017, Alibaba invested $2.9 billion for 36 percent share in Sun Art Retail Group, considered to be China’s Walmart.

China’s trade war with the US started to be felt by Chinese consumers. The report predicted that retail sales growth would weaken to 7.5% in 2019, from around 8.5% last year.

Amidst the slow growth prediction, a senior economist at Oxford Economics, Tianjie He said that “we do not expect a significant slowdown in 2019.” For him, China’s consumers remain “a key driver of economic growth.”


Send in your scoop to 

- Advertisement -

Man attacks teen, calls him a virus, damages his phone

Singapore—A sudden attack took a teen by surprise when one man started yelling at him, physically harming him, and throwing his phone into a nearby drain at around 10.30pm on Tuesday (Feb 23) on a section of the road near the...

3 migrant workers die after 10 injured in Tuas industrial building blast

Singapore – Three of the 10 workers injured in an explosion at an industrial building in Tuas on Wednesday (Feb 24) died on Thursday. The Singapore Civil Defence Force (SCDF) responded to a fire at No. 32E Tuas Avenue 11 at around...

Film producer says Myanmar maid called her family, wanting to go home, two weeks before she died

A video producer who visited the family of Piang Ngaih Don, the Myanmar maid beaten and starved to death by her employers in 2016, says Ms Piang somehow managed to call her family just two weeks before she died. She told...

Send in your scoop to