Views

Shanghai Ranks First in China in Terms of Several Economic Indicators with Nighttime Sales over RMB 500 Billion - 2022-01-14

 

 

In 2020, the total retail sales of consumer goods in Shanghai reached RMB 1,593.25 billion, up 0.5% over the previous year, accounting for 4.06% of China’s total consumer goods retail sales, up 23% year on year. This puts Shanghai on top of all cities in China in terms of consumer goods retail sales, making it the No.1 consumer city in the country. The figures in the Shanghai Commerce Development Report (2021) (hereinafter referred to as the “Report”), which was released on January 7, 2022, are quite impressive.

The Report is jointly issued by the Shanghai Institute of Commercial Development and Shanghai Research Center for Commercial Development, under the guidance of the Shanghai Municipal Commission of Commerce and Shanghai Business School.

Online goods sales grow rapidly

Shanghai tops Chinese cities in terms of per capita income and consumption expenditure, and online goods sales have been growing rapidly in the city. The Report shows that Shanghai's per capita disposable income reached RMB 72,232 and per capita consumption expenditure hit RMB 42,536 in 2020. The sales of goods accounted for 58.8% of the total online sales in Shanghai, up 13.2% from the previous year, becoming the main segment of online shopping. 

Goods for upgraded consumption are enjoying a clear sales boom, while luxury goods sales are growing fast. In 2020, Shanghai residents' expenditure on upgraded goods continued to rise rapidly. Among the total retail sales of consumer goods in the city, sports and entertainment products, beverages, and gold, silver and jewelry saw their sales up by 62.2%, 54.6% and 27.8% respectively over the previous year. Sales of luxury goods in China beat the odds and grew by 48%, hitting RMB 346 billion. Many luxury brands achieved two-digit or even three-digit sales growth in China, with luggage, leather goods and jewelry taking the lead with a sales growth rate of 70% to 80%.

The duty-free economy contributes to the back flow of consumers and unleashes huge consumption potential. In 2019, Pudong Airport made RMB 11.6 billion in duty-free sales, only behind Incheon Airport and Dubai Airport and rising from third from sixth among the world’s airports in 2017. During the three years since it commenced operation, CDF Shanghai Duty-Free Shop has attracted more than 400[D1]  customers and achieved an annual sales increase of more than 20%.

Shanghai Fashion Week is gaining a growing international influence, playing an increasing role of boosting sales. Measured by the global fashion week vitality index, Shanghai Fashion Week has risen to the fourth place from its fifth and sixth positions in the world over the past decade, securing a place in the first echelon of the world fashion industry along with its Paris, Milan, London and New York counterparts. "Fashion Week on Cloud", the world’s first fashion week of its kind inaugurated in Shanghai, has introduced an all-new model of consumption. The number of participating brands in Shanghai Fashion Week increased from 178 in 2018 to 216 in 2020, which surpassed for the first time that in New York and London fashion weeks.

Suburban commerce has gradually become a major force

Business in all districts has been greatly hit by the Covid-19 pandemic, but Jing'an District has been an exception with its outstanding performance. Pudong New Area, Putuo District and Changning District registered the highest total sales of goods, with sales all exceeding RMB 1 trillion, accounting for 55.9% of the total sales of goods in Shanghai. In terms of total retail sales of consumer goods, only Jing'an District, Jiading District, Hongkou District and Pudong New Area achieved positive growth, with a year-on-year growth rate of 21.1%, 2.2%, 1.9% and 0.7% respectively. As for total goods sales, Jing'an, Baoshan, Chongming, Songjiang and Minhang districts all achieved positive growth, up by 5.6%, 5.3%, 2.7%, 1.4% and 0.2% respectively. Overall, Jing'an District was the only administrative area with positive growth in both indicators.

The number of newly opened shopping centers falls sharply, and suburban commerce has gradually become a major force. In all, 17 new shopping centers were opened in Shanghai in 2020, falling short of 27 in 2018 and 36 in 2019. It is worth noting that among the newly opened shopping centers, only two are located within the outer ring, while the remaining others are mostly located outside the outer ring. Suburban commerce has gradually become the main model of shopping centers.

"First stores" have produced remarkable economic effects. In 2020, Shanghai brought in 909 first stores, including 118 first stores in China and 12 first stores in Asia/the world. In all, 14.3% of these first stores have chosen to take root in Shanghai after they entered the Chinese market for the first time. The 6 super business circles of West Nanjing Road, Middle Huaihai Road, Xujiahui, Lujiazui, East Nanjing Road and Xintiandi are home to 1/3 of the city's first stores.

Timeshared pedestrian streets are established to promote the development of nighttime urban economy. Centering on the themes of night shopping, night food, night tour, night entertainment, night show and night reading, the cultural, business and tourism circles have worked together and integrated online and offline means to launch 50+ feature markets and 180+ feature events in the 9 landmark nightlife clusters of Shanghai. China UnionPay’s monitoring data show that nighttime economy in Shanghai contributes over RMB 500 billion in sales revenue, while nighttime leisure and entertainment account for more than 40% of the whole-day leisure and entertainment consumption.

Who value brands more? Consumers born in the 1980s or the 2000s?

what are the major consumer groups? According to the Report, white-collar workers, wage earners and supermarkets of daily items are the top three consumer groups, of which white-collar workers account for more than 20% and wage earners 15%. They make up the main shoppers in Shanghai.

District-wise, the purchasing power of Hongkou, Huangpu and Jing'an districts is significantly higher than that of other districts in Shanghai. They claim the top 3 spots in terms of consumer groups with huge purchasing power and high level of consumption. Among all the districts of Shanghai, Jing’an and Huangpu have the highest proportion of high-end consumer groups as well as artistic and trendy groups, accounting for a combined 30% of their kinds in the city. High-end groups are mainly in Shanghai Railway Station, Jing'an Temple, Nanjing Road and other core business areas of Shanghai, while "white-collar workers" and "wage earners" are distributed in rings in downtown Shanghai. Hongqiao Central Business District and Lujiazui Business Center have a relatively balanced composition of consumers.

In terms of monthly average consumption, Shanghai’s old downtown areas including Jing'an, Huangpu and Xuhui districts all show strong and stable purchasing power.

Consumers' view on brands is changing quietly. The Report found that male consumers attach more importance to brands than female consumers, while female consumers hold more rational views on brands. Consumers born in the 1980s value brands most, while those born in the 2000s value brands least. Consumers born in the 1990s are highly polarized in their views on brands.

What private label goods brands do consumers prefer? The Report revealed that consumers relatively prefer private label brands of clothing, food and beverages, cosmetics, computers, smart phones and other digital products, as well as fresh food including meat, seafood and fruits. Consumers like private label brand products that are of high quality and low price, safe, reliable and have a sense of taste.

Overall, consumers have shown relatively positive views on private label brands, which have left good impressions on them. Consumers mainly associate healthcare and beauty product retail, large supermarkets, integrated e-commerce and new retail with private label brands.

 

Author: Li Lei, Shanghai Observer

 


Sign in

 

 

Free sign-up | Forgot password

Application Status

04-16 21315227 Processing
03-12 21315226 Processing
09-26 21315225 Processing

Inquiry Status

02-29 02131558 Received
03-06 02131557 Received
11-14 02131556 Received

view more »

FAQ

Q: Q: Is there a place where I can get...
A: A: Log on to http://touch.shio.gov....
Q: Q: What is the easiest way to set u...
A: A: 1. Log on to http://touch.shio.g...
Q: Where can I get an English map of S...
A: English maps of Shanghai are availa...