China’s Retail Industry 2007 - November 2007

Fast pace of retail sales
According to the National Bureau of Statistics of China, the total retail sales of consumer goods reached RMB 7.6tr ($1,012bn) in 2006, up about 13.7% year-on-year.
The 2006 growth was strong, driven partly by the increased disposable income, group consumptions as well as by stable consumer prices. In 2006 the average disposable income in urban area reached RMB 11,759 ($1,565) up 10.4% adjusting for inflation. Meanwhile, the low inflation which was 1.5% in 2006 became a key factor in building up the confidence of Chinese consumers.
From January to August 2007, the accumulated total retail sales of consumer goods grew by 15.7%, the fastest pace since 1997. The annual consumer inflation hit a 27-month high of 3.4% in May 2007, which is helping to boost retail sales figures measured in nominal terms. Farmers benefit from the rising food prices which helped to increase their income and purchasing power.

If you would like to learn more about PMR’s market reports on China please visit:
- Construction China 2009
- Retail China 2008