Consumption contributed 64% to economic growth last year and will grow rapidly this year

On February 21, Minister of Commerce Gao Hucheng said at a press conference that consumption contributed 64.6% to economic growth in 2016, and national consumption is expected to grow rapidly this year. momentum.

For a long time, investment and export among the “troika” of my country’s economic development have played a relatively important role in driving the economy. This situation changed in 2014, when consumption became the first driving force for national economic growth, and this situation has lasted for three years now. In Gao Hucheng’s view, as China’s economic development enters a new normal, this change fully demonstrates that our country’s economic structure is undergoing an important historic transformation, that is, a shift in the direction of further expanding domestic demand.

On February 21, a report released by Nielsen also showed that China’s consumer confidence index was stable at 105-108 in each quarter of 2016. A consumer confidence index above 100 is considered positive, and vice versa is considered negative.

Wei Shao, general manager of the agency’s China region, analyzed that although China’s economic growth slowed down in 2016, consumers’ consumption desire was not only unaffected but continued to rise, with the consumption willingness index reaching 53%, the highest in the past four years.

The current main characteristics of China’s consumer goods have shown five important changes. Gao Hucheng said: “First, consumer demand has changed from meeting daily needs to pursuing quality; second, consumption patterns have changed from purely offline to online. and offline integrated development. The third is the transformation of consumer categories from mainly commodities to an equal emphasis on goods and services. The fourth is the transformation of consumer behavior from one-size-fits-all to individuality and diversity. The fifth is the consumption concept from focusing on ostentation and comparison to green and frugal. Transformation.”

A series of data can also support Gao Hucheng’s judgment. In 2016, a report by the consulting company OC&C showed that between 2011 and 2015, the average growth rate of online sales of FMCG in China was 78.4%, far exceeding the 10.7% in the United States and 7.9% in the United Kingdom. In 2015, China’s online FMCG sales totaled US$25.3 billion, more than the United Kingdom and the United States combined.

OC&;C’s research found that although it represents China’s decisive consumption trend, online sales of FMCG only accounted for 5% of China’s retail e-commerce market last year. According to the research organization “China Internet (爱记, Net Worth, Information) Observation” According to a report, China’s retail e-commerce market is expected to reach US$1.57 trillion in 2018.

“Consumers, especially young consumers, increasingly prefer to purchase the goods they need in convenience stores and online shopping channels. At the same time, offline shoppers pay more attention to a pleasant shopping experience and promotions. Compared with physical stores, The relatively low prices of online shopping channels, convenient price comparison methods and door-to-door delivery services are the main motivations for consumers to choose online shopping,” said Wei Shao.

Zhao Ping, director of the International Trade Research Department of the China Council for the Promotion of International Trade, told the “Daily Economic News” reporter that the overall economic situation in 2017 will grow steadily and the stability of consumption will be good. It is expected that the consumer market will remain stable this year. With the rapid development trend, the annual consumption will continue to grow at about 10% in 2016.