On October 25, the website of the Ministry of Commerce reported insights from the head of the department’s Circulation Development Division regarding the development of the wholesale and retail sector from January to September 2024.
This year, the overall performance of China’s wholesale and retail industries has been positive, with the construction of a modern commercial circulation system advancing rapidly. This development plays a crucial role in facilitating national economic circulation and establishing a new growth framework. According to the National Bureau of Statistics, from January to September, the value added from wholesale and retail reached 9.4 trillion yuan, marking a year-on-year growth of 5.4%, which accounts for 9.87% of GDP.
The retail and wholesale markets have shown stable operations, with most sectors experiencing growth. In the wholesale sector, the transaction volume for key monitored goods increased by 6.8% year-on-year. Notably, the transaction values of production materials and industrial consumer goods grew by 12.5% and 7.5%, respectively. In terms of retail, the National Bureau of Statistics reported that retail sales reached 31.4 trillion yuan, a 3.0% increase year-on-year. Among larger retail units, convenience stores, specialty shops, and supermarkets all saw positive growth rates of 4.7%, 4.0%, and 2.4%, respectively.
Both urban and rural markets have demonstrated strong vitality, with consumer traffic experiencing a steady increase. Urban shopping districts are showing consistent growth in foot traffic, with a reported 14.5% increase in customer visits across 50 key pedestrian streets and commercial areas monitored by the Ministry of Commerce. The construction of convenience living circles continues to progress, expanding the pilot areas for 15-minute living circles to 210 nationwide. Rural consumption has maintained a stable growth rate, with retail sales of consumer goods in rural areas hitting 4.8 trillion yuan, up by 4.4% year-on-year, exceeding urban growth by 1.2 percentage points. E-commerce in rural areas is thriving, with national data showing an 8.3% increase in rural online retail sales and an impressive 18.3% growth in agricultural product sales online from January to September.
Initiatives to encourage replacing old appliances with new ones have gained momentum, and domestic branded products have become increasingly popular. Sales from the old-for-new appliance program are on the rise, with the Ministry guiding local efforts to promote this initiative. As of now, over 20 million applications and 10 million purchases have been recorded on the national data platform for this program. Furthermore, retail sales of household appliances and audio-visual equipment from major retail units rose by 4.4% year-on-year, an acceleration of 5.0 percentage points compared to the previous year; September alone witnessed a substantial year-on-year increase of 20.5%. The market has also shown a preference for time-honored brands. The ongoing “Time-Honored Brand Carnival 2024” has featured 301 special events, driving online and offline sales to reach 16.73 billion yuan. From January to September, the number of stores selling Chinese time-honored brands on major e-commerce platforms exceeded 57,000, generating sales of 63.05 billion yuan, surpassing the total for the entire year of 2023.
