From January to May, Shanghai ranked first among all Chinese cities in terms of total retail sales of consumer goods, and Beijing won the second spot. The ranking slightly changed from that of 2019, with new first-tier city Chongqing surpassing Guangzhou, claiming the third spot, according to the 21st Century Business Herald.
Total retail sales of consumer goods has registered strong rebound in China since work and production resumed in an ordered manner, as local governments took multiple measures to stimulate social consumption, including launching shopping festivals, issuing vouchers and offering discounts for vehicle buyers.
As the news portal reported, Shanghai, the No 1 city in terms of total retail sales of consumer goods from 2016 to 2019, still ranked first in first five months this year, with total consumption volume registering 549.92 billion yuan ($78.53 billion), becoming the only city nationwide with social spending exceeding 500 billion yuan. In May, Shanghai’s total retail sales of consumer goods hit 129.07 billion yuan, increasing 0.6 percent from the previous year, and the monthly growth rate turned positive.
To boost the economy affected by novel coronavirus outbreak, Shanghai authorities launched “May 5” shopping festival that lasted for two months, issuing a total of 28.6 billion yuan worth of coupons and vouchers. Additionally, SAIC Motor and other local auto manufacturers offered at most 45 percent discounts for vehicle purchasing, which promoted car consumption to a great extend, with sales in May up 8.9 percent year-on-year.
Although Beijing maintained the second spot as in 2019, it witnessed great drop in total retail sales of consumer goods from a year earlier, with total spending in first five months falling 18.2 percent.
Affected by the regional virus outbreak in June, Beijing’s consumption performance in first half of this year is estimated to see bumpy road of recovery.
Total retail sales of consumer goods in Guangzhou from January to May reached nearly 342.3 billion yuan, which was exceeded by Chongqing, with total spending hitting about 426.9 billion yuan.
Another traditional first-tier city, Shenzhen, however, only ranked sixth in social consumption of around 289 billion yuan.
The 21st Century Business Herald said Shenzhen’s still remains a market with huge consuming potential, given its continuous inflow of young talents and development of high-tech industries.
Chengdu’s spot stayed unchanged from 2019, at the fifth, with total retail sales of consumer goods registering about 299 billion yuan in the first five months.
Wuhan took the sixth spot last year, but the epidemic-stricken city posted the biggest decline in total retail sales of consumer goods, which only reached 186.5 billion yuan, dropping 37.9 percent year-on-year, but the figure narrowed by 4 percentage points compared with the previous four months.
Suzhou, Nanjing and Hangzhou, three southeastern cities in Yangtze River delta, ranked seventh, eighth and ninth in terms of the total social spending, respectively.
As the epidemic gradually comes under control, new first-tier cities are expected to witness greater space and opportunities for consumption rebound, the 21st Century Business Herald said.