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Consumption recovery injects new vitality into China's economy: survey

(People's Daily Online)    18:11, June 18, 2020

There has been an improvement of consumption willingness as China has effectively controlled the COVID-19 pandemic, which will bring new vitality to domestic economic development, a study by Nielsen, a global measurement and data analytics company, finds recently.

A sales person introduces home appliances to a customer in Jinhua, Zhejiang province. (Photo/People’s Daily)

As China has effectively controlled the COVID-19 contagion, the nation’s economy has seen recovery in the past few months, according to research, which concluded that improvement of consumption willingness will bring new vitality to domestic economic development.

The research, released by Nielsen, noted that China's economy and consumer markets are extremely resilient. Taking the 2008 financial crisis as an example, China's economy and FMCG industry rebounded rapidly after dropping during that period.

According to data released by the National Bureau of Statistics, the total retail sales of consumer goods shrank 7.5 percent year-on-year in April, a decrease of 8.3 percentage points over the previous month. It showed consumption has been gradually picking up.

The research showed FMCG online sales climbed 33 percent year-on-year in January and February, 32 percent in March and 43 percent in April. So far this year, the number increased 37 percent year-on-year, maintaining a growing momentum.

Given the pandemic, the research also found while brand owners have a slow start in innovation in the first quarter, there was a strong revival in March-April period, with the number of new launches climbing 6 percent year-on-year.

Local brands have delivered rapid growth in recent years, which means that localization is becoming a new trend in product innovation. 

Nielsen data shows that 17,251 new items were launched in March and April this year, and seven in 10 new products belong to small regional players. These small regional players have become an important force driving product innovation.

Justin Sargent, president of Nielsen China, said: "Since the outbreak of the virus, China’s experience in fighting off the disease has been a barometer for the world. As people's life gradually returns to normal, consumer-driven domestic demand is now recovering in China, which has injected optimism into the wider global market." 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Bianji, Hongyu)

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