As one of the fastest growing economies on the world, China continues to show its strength, backed by the country’s consumers. The retail industry in China has seen impressive growth in the last decade: from a mere number of 26,691 retail companies in the country in 2007, it quickly ballooned to 99,182 companies in 2017. In addition, consumption of consumer goods through the Internet also increased dramatically in a span of 10 years—from 0.6% in 2007, online sales experienced a rise, hitting 12.4% in 2017.
These numbers paint an emerging China, whose retail landscape remains competitive, always busy. One of the industry’s central components is the wealthy Chinese consumer. A report in Mckinsey projected that China is expected to have the most affluent households by 2021. It was also estimated that 7.6 million Chinese households purchased luxury goods, a possible effect of the rise of luxury retail stores in Mainland China.
Another major player in China’s retail industry is the country’s “new engine of consumption”: the post-90s generation, or the younger millennials. Made up of consumers born between 1990 and 1999, they have become a driver in the retail industry because of their purchasing habits and behaviors, the Western culture influence, spending power, social media, and digital technology. These last two factors have both played a huge role in pushing the industry, especially evident during Singles Day in 2018, where consumers purchased $45 billion worth of goods and services in a 24-hour period. This shopping event continues to impact the overall growth of online retail in China, as it aims to grow further each year.
Opportunities to penetrate the retail industry in China can be within reach with the help of a global leader who is committed in making each interaction count and capable of providing proven omnichannel solutions tailored to fit your needs. Teleperformance in China is ready to be of service—contact us today to learn more about our services.