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Himfr Report: China's Domestic Consumption Continues to Maintain Steady Growth

2010-07-21 20:22 1756
    BEIJING, July 21 /PRNewswire-Asia/ -- Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, reports on steady growth in the rate of China's domestic consumption.

    In the second half of this year, China's domestic consumer demand will maintain relatively stable growth. It is expected that in the next three to five years, China's consumer demand maintain sustained and strong growth.

    In observing the current situation, the momentum of consumption growth is very high. Retail sales of social consumer goods in China rose 18.7% compared with last year. 

    However, there are quite a number of factors inhibiting consumption. Under the state's regulation of the real estate industry, property market consumption has seen a significant decline. These regulations have led to a reduction in spending in these sectors. The property market downturn, coupled with recent extreme weather in China, has seen current refrigerator and air conditioner sales in major cities below normal satisfactory levels, essentially flat with last year.

    There are two main items of domestic consumption -- in addition to housing, the automotive sector experiences the largest consumption rate. After last years huge amount of output and sales in China's domestic auto market, a downturn can only be expected this year. It can be concluded that: in the second half of this year, although consumption growth momentum will continue along the same lines as the first half of the year, the speed of consumption growth will not rise too fast.

    There are at least three factors affecting consumption growth in the second half on 2010: First, economic rebound and income enhancement. Although a slowdown in economic growth throughout the year will be present, overall, economic growth should remain at 9% or higher during the year. Second, consumption of non-durable consumer goods may replace consumer durables. The property market and automobile market in the second half will continue a downturn, and will thus promote the consumption of food, clothing and daily necessities. Third, provinces and municipalities in China have recently raised the minimum wage level. If income is further enhanced, the expansion of mass consumption will be a definite trend.

    Cities are the main carriers of consumption, and rapid urbanization in the future will greatly promote the release of China's consumption potential.

    About Himfr.com

    Himfr.com is a promising e-commerce company and a leading vertical search engine company in China. Himfr.com offers a variety of high quality products such as rope hammocks (http://www.himfr.com/buy-rope_hammock/ ), compression fittings (http://www.himfr.com/buy-compression_fittings/ ), bnc connectors (http://www.himfr.com/buy-bnc_connector/ ) and more.

    For more information, please contact: 

     Himfr.com
     Tel:   +86-10-6556-9770
     Email: my@himfr.com 

Source: Himfr.com
Keywords: Retail
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