Consumption power reflects China’s resilience: experts
By Wang
Yi
Chinese
brands saw sales surge on major e-commerce platforms on June 1, the opening day
of the country’s mid-year shopping festival.
The
shopping spree comes from supporting measures to spur domestic consumption
which shows the economy’s resilience. Rising domestic sales may offset the
impact of the prolonged China-US trade dispute according to experts.
Major
e-commerce platforms made a good start of this year’s “618 Shopping Festival”
beginning on Saturday, June 1, according to the Beijing Youth Daily Sunday.
More
than 17 million items were sold on JD.com in the first hour of June 1, 83
percent up from last year.
By 11:23
am, Alibaba’s e-commerce platform Tmall had exceeded the total business volume
of last June 1.
More
than 10 major brands on Suning.com had sold more than 100 million yuan ($14.49
million) worth of goods in the first hour.
Amid the
boom, Chinese consumers are showing great interest in quality and innovative
products, the report said. Air conditioners priced higher than 8,500 yuan are
hot-selling home appliances on JD.com. In the first hour, sales of OLED TVs,
which represent the future of TV technology, were up 270 percent compared with
last year.
China
has rolled out measures to boost domestic consumption. China’s individual tax
revenue in the first four months dropped 30.9 percent, while overall tax
revenue increased 4.6 percent, according to official statistics released in
May.
“We’re
not concerned about slowing Chinese exports affecting GDP growth because the
Chinese economy is shifting from an export economy to a domestic consumption
economy,” said Alibaba Executive Vice Chairman Joseph Tsai on May 15 during a
quarterly earnings conference call.
The
largest e-commerce platform in China reported strong revenue growth of 51
percent in the last fiscal quarter.
Domestic
consumption is $5.5 trillion at present, and consumption from third-, fourth-
and fifth-tier cities will triple from $2.3 trillion to nearly $7 trillion in
the next 10 years, Tsai said.
Major
platforms are maintaining stable growth and those focusing on third- and
fourth-tier cities are expanding faster, Cao Lei, head of China’s E-Commerce
Research Center, told the Global Times
on June 2.
An
expert also expressed his confidence over the country’s consumption, which has
been the biggest driving force of China’s economy in the past five years,
forecasting that consumption growth will remain in the range of 7 to 9 percent
this year.
As
reforms release more consumption power, and more advanced products and services
are produced and developed at home, the consumption growth could offset the
impact from the ongoing trade dispute, Tian Yun, vice president of the Beijing
Economic Operation Association, told the Global
Times on Sunday, June 2.
Final
consumption expenditure contributed 65.1 percent to China’s economic growth in
the first quarter, official data showed.
China’s
overseas spending remains at a high level, however, which indicates that
domestic education, healthcare, cultural products and services are still
lagging behind consumers’ needs, Tian said.
The
impact of the China-US trade dispute on China’s economy is being overestimated,
Tian added, and even its impact on China’s exports is overestimated. Analysis
should be based on the added value of exports, instead of the total value.
Source:Global Times
In recent years, regarding the
consumer demand changing, Rugao World Flowers, in Jiangsu Province, guide
growers to plant small and micro bonsai, and help the bonsai flow to people’s
households through the organization of national marketing activities and online
promotion. (Photo by Xu Hui from
People’s Daily Online)
Consumption power reflects China’s resilience: experts
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