Retail sector in China – additional information
China has become one of the world’s most lucrative and rapidly growing retail markets. By 2015, total retail sales in China are estimated to increase by 12.8 percent compared to the previous year. Booming retail sales in China are mostly driven by the steady rise of private income. In 2013, per capita annual income of urban households in China had amounted to 29,547 yuan, reaching a near four-fold raise compared to the annual incomes of ten years earlier.
Due to large regional income disparities, purchasing power in China varies greatly. In 2013, average consumption expenditure of Chinese urban households had amounted to 22,880 yuan, whereas consumption spending in rural households had ranged at only one third of urban expenditure. In 2012, both urban and rural households in China had spent the largest proportion of their income on food, 35 percent and 38 percent respectively.
Unlike in the United States, where big retailers dominate the market, China’s retail market is highly fragmented. As of 2013, there were 80,366 retail enterprises in China. Another feature of China’s retail market is the flourishing e-tailing. China has become the world’s second-largest e-commerce market, with online retail sales reaching about 1.8 trillion yuan in 2013. China’s largest e-commerce company, Alibaba Group, had generated approximately 76.2 billion yuan in revenue during its fiscal year 2015 ending March 31, 2015.