China's Consumer Market Prospers during May Holiday
Source: MOFCOM Date: 2007-05-10
According to statistics released by the MOFCOM, from May 1-7, gross retail of China’s social consumable realized 320 bn Yuan, a 15.5% increase over the same period last year.
1. merchandise sales increased steadily, and LCD TV, air conditioner, jewelry and fashion dress became hot buys.
LCD TVs, modern air conditioners, jewelry, digital cameras and fashion dresses enjoyed great popularity among consumers. On-line shopping became more popular this year. B to C and C to C sales revenue of Taobao, EBay, Dangdang and many other on-line stores went up by 30%, which was more than usual. Sales revenue of key inspected and surveyed retail enterprises from Guangdong, Guizhou, Shanxi, Jiangsu and Liaoning showed increases of 41%, 25%, 24%, 21% and 20% respectively year on year while that of other major enterprises from Chongqing, Sichuan, Henan, Guangxi, Hebei, Anhui, Hunan, Heilongjiang, Hainan and other provinces rose up between 15% -19% over the previous year.
2. concept of consumption was upgraded continuously; while healthy and educational products became new hot buys.
While people’s living standard continues to elevate, consumers are paying more attention to healthy and educational products, which makes body-building, Shaping, Yoga, ball games, swimming and other sport activities popular among many people.
3. “Happy Farmhouse Trip” promoted harmonious development between the rural and urban areas, which boosted consumption growth in rural areas.
“Eat farmhouse meals, pick fruits at local gardens, and live at farmhouse” and experience natural and harmonious rural life, has become the first choice of urban residents to spend their holidays. During the “May Golden Week’, there was a 10% increase in tourists to farmhouse trip in Shanghai rural areas.
4. Traditional featured restaurants became popular; wedding and family reunion banquets enjoyed a prosperous increase in business.
Wedding and family reunion banquets brought time-honored hotels in Beijing prosperous business during the May Holiday. Many hotels were fully booked one month earlier and some of them had 5 to 6 wedding banquets on average per day.
5. Daily necessities were in sufficient supply, which guaranteed a smooth function of the market during the May Holiday.
During the May Holiday, sufficient and various daily necessities supplies were ensured; edible oil, meat, poultry and egg prices went up slightly while vegetable price dropped. By category, rice and flour prices retained stable while bean oil and peanut oil prices rose up by 1.3% and 1.1% respectively over the previous week. Due to consumers’ increasing demands and other factors, the price of pork and egg went by 1.4% and 0.9% respectively , while prices of 20 main vegetable dropped by 2.3% over the previous week. Price of Hot pepper, tomato and eggplant declined by 7.6%, 7.4% and 6.2% respectively than that of the week prior to the May Holiday.
