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China retail sales growth turned positive in Q3 2020

Perfect Diary C-Beauty cosmetics

October 19, 2020 By CIW Team

With this year’s -2020 – double eleven or single’s day retail extravaganza only a week away speculation is rife as to whether the event can live up to its hype. Will it exceed last year’s sales and produce the massive figures we have all become bored with year after year? While Octobers “Golden Week” and last public holiday in China – National Day celebration – turned in some very good results for some brands current concern revolves around production and logistics. In other words, can China manufacture and distribute enough to satisfy demand?

That is largely a rhetorical question and can not be answered until the end of double eleven. Insiders have little doubt demand will be there. At least domestically inside China. Pre sales figures, if they are to be believed would tend to lend credence to this. However, whether confidence and willingness to spend amid the pandemic in China’s closer Asia countries is as strong also remains to be seen. Again, the proof of the pudding…..

For now, this short article, courtesy of China Internet Watch takes a retrospective look at China’s retail sales growth for the third quarter of 2020. This period reported the years first positive growth of 0.9%.

We have summarised the main headings of the report below

Monthly Retail Sales Growth

Month – YearRetail Sales Growth
08 – 20197.5
09 – 20197.8
10 – 20197.2
11 – 20198
12 – 20198
01/02 – 2020-20.5
03 – 2020-15.8
04 – 2020-7.5
05 – 2020-2.8
06 – 2020-1.8
07 – 2020-1.1
08 – 20200.5
09 – 20203.3
Thanks to CIW

The report notes, among other things that retail sales in urban areas in the first three quarters reached 23,684.3 billion yuan, down by 7.3%,. Retail sales in rural areas reached 3,648.1 billion yuan, down by 6.7%. It also analyses growth in sectors such as catering; down by 5.1 percent, telecommunication equipment, sports and recreational articles, and cosmetics up by 7.2%, 6.8%, and 4.5% respectively. These figure coincide with Chinese reluctance to venture outside and swing to on line shopping.

Retail in August 2020

In August, the total retail sales of consumer goods in China totaled 3,357.1 billion yuan (US$496.67 bn), up 0.5 percent year on year, the first positive growth since the beginning of 2020. Among them, the retail sales of consumer goods excluding automobiles totaled 3,015.8 billion yuan (US$446.18 bn), down 0.6%.


China Retail Sales in H1 2020

In the first half of 2020, China’s online retail sales totaled 5,150.1 billion yuan (US$727.36 billion), up 7.3% year-on-year

In the first half of the year, retail sales of consumer goods in urban areas were 14,934.5 billion yuan, down 11.5%. Retail sales in rural areas were 2,291.1 billion yuan, down 10.9%. CLICK TO TWEET

China Retail Sales in Q1 2020

In March, the total retail sales of consumer goods reached 2,645.0 billion yuan, down by 15.8%, a decline narrowed by 4.7 percentage points compared to that of the first two months. The retail sales of consumer goods excluding automobiles reached 2,384.1 billion yuan, down 15.6 percent.

Online Retail in Q1 2020

The online retail sales reached 2,216.9 billion yuan (US$313.19 billion) in Q1 2020, down by 0.8% year on year. Among the online retail sales of physical goods, food and living commodities increased by 32.7% and 10.0%, respectively while clothing goods decreased by 15.1%.

For a fuller and detailed analysis, please refer to the full report – 1300 words – at China Internet Watch. For professional support or questions re your China marketing, please contact us.

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