China tipped to overtake US as world’s largest retail market this year
New York-based eMarketer says annual mainland spending forecast to grow 13.3pc to US$4.886 trillion, to edge past the United States’ US$4.823 trillion
The Chinese mainland, home to the world’s biggest e-commerce market, is predicted to overtake the United States in annual retail sales by the end of this year, according to data released on Thursday by New York-based research firm eMarketer.
Total retail spending on the mainland is forecast to grow 13.3 per cent to reach US$4.886 trillion this year, up from US$4.313 trillion last year, to edge past the estimated US$4.823 trillion expenditure in the US in the same period, eMarketer said.
The milestone for China, which counts a potential 1.4 billion consumers, would come two years earlier than expected.
Global professional services firm PwC last year forecast China to become the world’s largest retail market overall by 2018, after overtaking the US as the global e-commerce leader in 2013.
Monica Beart, the forecasting director at eMarketer, said e-commerce will continue to anchor overall retail growth on the mainland amid the expansion of its middle class, deeper mobile and internet penetration, and improvement in logistics and infrastructure support.
"In addition, the country continues to make the switch from being a manufacturing-led economy to being a more service-driven and consumer economy," Beart said.