Breaking News

China expected to become top retail market this year

China is expected to top the U.S. as the world’s largest retail market in 2019. Retail sales in China are forecast to grow 7.5 percent to $5.6 trillion in 2019. Meanwhile, U.S. retail sales are projected to increase by 3.3 percent to $5.5 trillion. While growth is slowing for both countries, China is expected to outpace the U.S. through 2022.

It is certainly due to the rising incomes that Chinese consumers experience for a decade. Indeed, millions of Chinese workers have moved from rural to urban areas and realized significant wage increases.

Today, China is already the world’s leader in e-commerce sales, with 35.3 percent of the country’s retail sales set to take place online this year. Compared to 10.9 percent in the U.S., China’s e-commerce sales are projected to grow 30 percent to $1.9 trillion in 2019.

While Alibaba will account for 53.3 percent of China’s ecommerce sales this year, its share has been declining as smaller players like social commerce platform Pinduoduo grow.

The U.S. still far outpaces China in per capita retail spending annually, with projected 2019 sales of $16,661 in the U.S. and $4,056 in China, the study says.