China's vast county-level markets are rapidly evolving beyond a cheaper extension of urban markets into an increasingly important source of domestic consumer growth, industry experts and data show.
According to data from the National Bureau of Statistics, retail sales of consumer goods in rural areas climbed 2.4 percent year-on-year in the first seven months of this year, more than double the 1.1 percent growth in urban areas. Today, county and township economies generate approximately 40 percent of China's total GDP.
Rural retail growth has outpaced or roughly matched urban growth for 55 consecutive months, a span of more than four years, highlighting the durability of a shift in consumption toward smaller markets, said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.
"Covering more than 90 percent of the nation's land area, county-level markets form complete, independent economic units with diverse consumption scenarios," Zhou said. "With rising living standards and incomes, pent-up demand for high-quality lifestyles is surging. This is being met by an influx of major retailers expanding downward, creating an efficient supply-and-demand alignment."
