CHINA - Amid reports of cooling economic growth, China’s consumption has remained firm.
Meat and Livestock Australia reports that retail sales in September rose by 11.6 per cent year-on-year and remained steady on the previous month according to the figures from China’s National Bureau of Statistics.
A highlight in China’s retail sector was the 50 per cent growth in online retail sales during the first nine months of 2014, at RMB1.8 trillion yuan.
Online retail sales in this period accounted for around 9.6 per cent of overall Chinese retail sales, an increase from five to six per cent reported for 2012 , according to the McKinsey Global Institute.
McKinsey Global institute indicated that online retailing has a strong incremental effect on private consumption in China.
MLA said that this increase is particularly evident in China’s medium size and small cities, which generally lack compelling physical retail offerings.
As consumers gain better access to a broader set of products, they are spending more.
Last week, Costco Wholesale Corporation took a move to sell directly to Chinese consumers on Alibaba’s platform, employing local knowledge and a low cost structure mechanism.
TheMeatSite News Desk