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Semi-annual Report On China's Retail Trend In 2018: Four Characteristics, Three Major Trends Are Worthy Of Attention
- Oct 26, 2018 -

Recently, iResearch issued the "2018 China Retail Trends Semi-annual Report" (hereinafter referred to as "semi-annual report").


The "Semi-annual Report" shows that from January to June 2018, the total retail sales of consumer goods in China was 180.18 billion yuan, a year-on-year increase of 9.4%. Among them, the total retail sales of consumer goods in June 2018 reached 3,844.2 billion yuan, a nominal growth rate of 9.0% year-on-year; compared with the previous two months, the growth rate has rebounded.


The "Semi-annual Report" believes that China's retail consumption in the first half of the year has the following four characteristics.


First, the consumption gap has shrunk and the consumption concept has taken shape. After consumers spend online for a certain period of time, the consumption structure and consumption expenditure will tend to be stable, and the average consumption dispersion will converge. At the same time, after the same process is experienced by different consumer groups, consumption will begin to converge, between the crowd and the crowd. The difference is far less than the difference in the internal changes of the population over time. Just like all roads lead to Rome, the consumer consumption process is similar, and eventually leads to “mature consumers”.


Second, men prefer massage and health care, and women have a strong desire to exercise. The improvement of income level and the development of the concept of quality life have given birth to refined consumption.


Third, smart digital products and high-end living appliances are favored. Smart digital products and high-end living appliances continue to be favored by consumers, not only in terms of total sales, but also in sales of high-end products. Sales of smart digital products continued to increase. In the quarterly terms, sales in different price ranges have basically increased to varying degrees. Among them, sales of products above 999 yuan have the strongest growth.


Fourth, flower consumption has become a daily consumption. With the deepening of online consumption, consumers are more interested in gift flowers, from the original major festivals to buy flowers, to the daily adjustment of life style to buy flowers, to the purchase of flowers to enrich home life, gifts and flowers to create high-quality enjoyment of life consumption. Habits gradually develop.


The "Semi-annual Report" believes that the following trends in the Chinese retail industry are worthy of attention.


Trend 1: The online and offline integration accelerates. Since June 2016, the retail index of 3,000 key retail enterprises nationwide has shown a volatility upward trend. Considering the impact of seasonal fluctuations, the recovery trend of the physical retail industry has begun to emerge; for e-commerce, the online customer cost has surged with entities. The dual factors of retail recovery have further strengthened its incentive to penetrate the offline market. After experiencing the high-speed growth period of domestic retail e-commerce, the online penetration rate of the domestic retail market has not exceeded 20%. In addition, the online customer cost and logistics cost have risen, and the scrap gap between the online and offline costs of the retail industry has gradually closed. From the online and offline integration model, more than 80% of the retail market share under the penetration line has become the consensus of the domestic e-commerce platform.


Trend 2: Social e-commerce is growing rapidly. The social e-commerce model has its unique advantages in the process of pulling, transforming and retaining: Firstly, the acquisition of customers through social platforms can significantly reduce the cost of users. Secondly, whether it is based on strong relationships, acquaintances, or The social relationship of weak relationships and the endorsement of trust generated by different social relationships play an important role in improving user conversion. Finally, content operation and community operations can effectively enhance user stickiness.


Trend 3: The expansion of online retail categories. In the new consumption situation, in addition to the expansion of physical goods, e-commerce platforms have also begun to extend to service-oriented goods. On the one hand, more and more e-commerce platforms have begun to provide additional services for the sale of physical goods, such as car maintenance services, home appliance installation and cleaning services; on the other hand, in addition to physical products, e-commerce platform has also begun Provide more service products, such as pet services, travel and vacation.