Chinese online sales reported to grow
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Chinese online sales are tipped to reach US$1.17 trillion by 2020, according to new research by Goldman Sachs.
That compares with $750 billion in 2016.
“While there have been concerns of a slowdown following the deceleration in growth to mid-20 per cent in 2016, we expect online retail growth to sail on at 23 per cent CAGR over 2016-2020, continuing to grow at nearly triple the pace of offline retail,” the financier said in a research paper.
And it says the internet’s share of total retail sales will climb from 16 per cent in 2016 to 25 per cent in 2020 – representing an increase in its protection of just a year ago.
Augmented reality and virtual reality will help fuel a rise in apparel sales online from 31 per cent of the total market last year to 49 per cent by 2020.
Goldman Sachs also predicts that the average spend will grow at a combined annual growth rate of 10 per cent from 2016 through 2020 as incomes grow and as consumers buy a wider range of products and more branded goods through the internet.
Questions & Answers
Q.How much growth is predicted for Chinese online retail between 2016 and 2020?
How much growth is predicted for Chinese online retail between 2016 and 2020?
Goldman Sachs forecasts a 23 per cent compound annual growth rate (CAGR) for online retail in China during this period. This growth is expected to be nearly triple the pace of offline retail.
Q.What proportion of total retail sales is the internet expected to represent in China by 2020?
What proportion of total retail sales is the internet expected to represent in China by 2020?
The internet's share of total retail sales in China is predicted to increase from 16 per cent in 2016 to 25 per cent by 2020, according to the research.
Q.What factors are expected to contribute to the increase in average online spending?
What factors are expected to contribute to the increase in average online spending?
The average spend is expected to grow as incomes rise and consumers purchase a greater variety of products, including more branded goods, through online channels. This is predicted to be at a 10 per cent combined annual growth rate.
Q.Which technologies are identified as drivers for increased online apparel sales?
Which technologies are identified as drivers for increased online apparel sales?
Augmented reality and virtual reality are anticipated to help fuel a rise in online apparel sales. These technologies are expected to increase online apparel's market share from 31 per cent to 49 per cent by 2020.
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Will China's online retail growth hit US$1.17 trillion by 2020?
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