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China's biggest gain of 14.7% in retail revenue

China's retail sales in the first two months soared to the biggest gain in two years as spending on vehicle, furniture and jewelry surged, the National Bureau of Statistics. Sales rose 14.7 percent year on year to 1.45 trillion yuan (US$181.3 billion) in the January-February period, after rising 14.6 percent in December, the bureau disclosed, without specifying the monthly figures. The growth was the largest in two years since February 2005. Retail sales in urban areas rose 15.3 percent to 980 billion yuan while in rural areas it jumped 13.4 percent to reach 470.3 billion yuan. "Increasing income drove domestic demand and spurred consumption," said Li Mingliang, an analyst at Haitong Securities Co. "Booming sales will probably stay strong for the rest of the year" as the National People's Congress places importance on a higher family income in its discussions. The government has cut taxes, raised minimum wages and increased spending on education and health care in a move to boost consumption and shift the economy from one that heavily relies on exports and investment. Retail sales rose 13.7 percent to 7.641 trillion yuan in China last year, according to statistics from the NBS. Disposable income among city dwellers rose 12.1 percent to 11,759 yuan last year while in rural areas it climbed 10.2 percent to 3,587 yuan. Retail and Wholesale trade sales gained 14.6% to 1219.6 billion yuan, while lodging and catering industry sales was up 17% to 205.9 billion yuan. Other industries accounted for 24.7 billion yuan sales. Grain and oil sales grew by 25.4 percent, automobiles were up 48.1 percent while oil and oil products rose by 28.4 percent. Sales of commodities in daily use increased 23%, sales of household appliances grew 21.6%. Furniture sales jumped 40.8% and sales of construction and decoration materials climbed 32.5%. Telecommunication sales rose 13.2% and that of motor vehicles increased 48.1%. Petroleum and its products sales climbed 28.4%, while jewelry sales clocked a 39.2% rise. The rosy retail market has lured companies to broaden their sales network as they bank on higher revenue and bigger profits. Avon Products Inc, the world's largest door-to-door cosmetics retailer, said last week that sales in the China jumped 28 percent year on year for the fourth quarter after receiving a license for direct sales on the mainland in March last year. Suning Appliance Co, the nation's second-largest home appliance chain, said over the weekend its net income soared a whopping 105.42 percent to 720.3 million yuan and sales jumped 56.42 percent to 24.93 billion yuan last year. The retailer, based in Nanjing, Jiangsu Province, operated 351 stores by the end of December and aims to open 200 more this year.

 

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