As the overall economy continues to grow strongly – GDP was reported to be up 9 percent in the past quarter, the 10th in a row at these levels – the retail sector has outperformed. Retail sales rose 12.8 percent year-on-year in October, and could reach RMB6.1 trillion for the year as a whole (up 13 percent).
The bull market for retail is expected to continue, as the government tries to boost consumption and as incomes continue to rise – urban workers were reported to have had 9.8 percent more disposable income in the first nine months than a year earlier, while rural incomes rose 11.5 percent. Predictions are that sales will rise a further 12 percent, to RMB6.8 trillion in 2006.
Foreign retailers at both ends of the spectrum, including LVMH and Wal-Mart, have been attracted to the party. LVMH reported that sales of its luxury brands are rising “exponentially”, while Wal-Mart, the mass-market leader, plans to open another 13 stores in China next year, bringing the total to 62.
See related news:
- Retail sales, FDI point to solid China momentum 
Financial Express – Bombay,India
BEIJING, NOV 14 : China on Monday reported sturdy retail sales and foreign direct investment in October, reinforcing the message from other data that the …
China expects 2005 retail sales of 6.1 trln yuan, 6.8 trln in 2006 
Forbes – USA
BEIJING (AFX) – China’s retail sales are expected to reach 6.1 trln yuan this year, up 13 pct from a year earlier, Huang Hai, assistant to the commerce …
World’s top retailer to open 13 stores in China next year 
People’s Daily Online – Beijing,China
The world top retailer, Wal-Mart, will open another 13 stores in China next year to increase the total to 62, the Economic Daily reported Tuesday. …
LVMH hails China’s luxury goods boom 
MSNBC – USA
LVMH said on Friday that sales of its signature brands in China were rising “exponentially,” suggesting that the luxury industry’s dream of a substantial …