Retail sales reach a decade-high
As consumers are paying more for basic necessities and are more willing to spend in the face of rising inflation, China’s retail sales increased 22 percent in April from a year earlier. According to the National Bureau of Statistics (NBS), sales of foodstuff and beverage climbed 25.3 percent while spending on grain and edible oil surged by 36.3 percent.
After some research, Song Yu and Liang Hong, Goldman Sachs’ economists said, “With inflation at a decade high level, it is not surprising to see nominal retail sales reaching a decade high as well.” They estimated the growth of retail sales in April stood at 13 percent year-on-year.
The growing consumption may be caused by rising inflation which forced consumers to pay not only for daily necessities, but also durable and luxury goods. It was also due to the growing willingness to consume under a high-inflation environment. The April report shows sales in furniture rose by 37.2 percent, automobiles, 25.7 percent, and gold and silver jewelry, 41 percent.
Consumer price index rose to a 12-year record high, which was up 8.7 percent in February. It dropped slightly in the following two months. But consumer inflation still stood at 8.2 percent for the first four months. Compared with 7.47 percent, the benchmark one-year lending rate, the figures represent a negative interest rate.
Cao Shuang, an anesthetist from a hospital in Shanghai, spent 600 yuan buying a gold pig as a mascot for her newborn baby. He thought it would not only bring good luck but is a good investment as gold is rising in value these days.
In April, sales for construction and decoration materials declined 1.2 percent compared with a year ago, which reflecting the weakness of the property market; housing prices have continued rising in recent months; mortgage loan growth has also slowed down for the first quarter in Shanghai. In March, it is reported that lenders in the city even have negative growth in mortgage loans.
Are you interested in the business opportunities in China?
China is one of the world’s great growth markets and is likely to be for many years to come. Foreign companies often face difficulties in assessing Chinese market demand and enacting effective strategies because of the language barriers, culture differences, and high expense.
BPOVIA is the leading virtual assistant and Knowledge process outsourcing (KPO) service provider in China. BPOVIA is the only virtual assistant company ever been nominated for the prestigious “Red Herring 100 Asia” Awards 2008. Combines international perspective with local know-how, BPOVIA can provide our clients China business development service and help our clients doing successful business in China.
Please visit http://www.BPOVIA.com/ for details about our service.
Popularity: 2% [?]