China Shows Off Consumer Power Ahead of Signing Phase 1 Trade Agreement

[Asia Economy Beijing=Special Correspondent Park Sun-mi] "Belgian beer, Thai rice, New Zealand milk, Norwegian salmon, Canadian shrimp and cherries... This is only a part of the list of imported goods that consumers in China's small and medium-sized cities can purchase during this month's Chunje holiday."

Chinese state media released a report highlighting China's enormous consumer power ahead of the US-China Phase One trade agreement scheduled for the 15th (US time). This comes amid reports that China will purchase $200 billion worth of US products over the next two years as part of the Phase One trade deal, emphasizing China's consumer power.

China Daily reported on the day, "During the upcoming Chunje (Chinese Lunar New Year holiday) period, Chinese consumers are expected to consume a large amount of imported goods," adding, "Shopping to give gifts to family, friends, and relatives during Chunje has become a long-standing tradition in China. Imported goods consumption is expected to surge."

The newspaper explained, "Thanks to convenient and efficient e-commerce platforms, imported goods are no longer exclusive to consumers in first- and second-tier major cities," and "Consumers in third- to fifth-tier small and medium-sized cities, whose disposable incomes are increasing, can now conveniently consume imported goods through e-commerce platforms." It also added, "In the first to third quarters of last year, the per capita disposable income of rural residents in China maintained a higher growth rate than that of urban consumers," emphasizing the need to pay attention to their consumer power.

For example, when the e-commerce platform JD Daojia held a shopping festival from the 28th of last month to the 5th of this month, total sales in third-tier and lower small and medium-sized cities increased more than 5.6 times compared to the same period a year ago, and the sales growth rate of imported goods increased by 9.8 times. Imported fruits, milk, candy, and chocolate were the most popular items at that time. Additionally, some small cities such as Putian in Fujian Province, Changyin in Jiangsu Province, and Zhuhai in Guangdong Province saw imported goods sales double compared to a year ago.

JD Daojia stated, "As the Chunje holiday approaches, overall imported goods sales have increased 2.3 times compared to a year ago, and sales of foreign infant formula, nuts, and detergents have tripled compared to a year ago," adding, "Imported fruit consumption also increased 2.2 times compared to the average sales volume in December last year, with bananas and Chilean cherries ranking among the popular imported fruits."

Chen Tao, senior analyst at consulting firm Analysis, said, "Consumers in small and medium-sized cities are actively purchasing imported goods to celebrate the Chunje holiday, and the development of e-commerce platforms has made access to imported goods easier for them." Deloitte China also recently published a report stating that less developed small and medium-sized cities are playing a new driving role in China's imported goods market.