Fung Business Intelligence released the Ten Highlights of China’s Commercial Sector 2020 (English version) and presented it to the media on Jan 15. According to the report, while another challenging year is forecast for commercial enterprises in China, an anticipated easing of trade tensions with the U.S., coupled with growing consumption in emerging sectors and segments, is set to bring fresh opportunities in 2020.
Overall, China’s commercial sector is likely to soften further because of ongoing internal and external economic pressures. However, persistent efforts by the Chinese government to boost consumption and optimize the domestic business environment are expected to deliver ample opportunities. Moreover, the increasing influence of young consumers – particularly the “post-90s”, “post-95s” and “post-00s’ generations, and of “small-town youth” – will help fuel growth in China’s commercial sector.
The ten highlights forecast for 2020 are:
1. Services consumption is a key driver of consumer market growth; further improving China’s consumption structure and business environment
2. Night-time shopping and consuming proliferate, bringing new growth opportunities
3. Services consumption continue to boom; catering industry thrives and enters a smart new era
4. Transformation of consumer market and circulation sector accelerates; creates a stronger domestic market
5. Innovative retail formats and new business models become evident, capturing diverse and fast-changing consumer demands
6. Digitalization becomes the “new normal”; revolution in the circulation industry facilitates reconstruction of production processes
7. Renovation of pedestrian streets facilitates consumption upgrading; trend for coordinated development between commerce, tourism and cultural businesses
8. Community retailing shifts towards services; “last-100-meter” retail gains attention
9. Joint efforts to promote rural e-commerce, food traceability and poverty relief lead to mutual gains
10. Agricultural distribution channels accelerate transformation; rural issues and consumption upgrading are better addressed
“For this, our 17th edition, we jointly garnered the views of over 160 leading experts in a report we believe points the way for key development trends in China’s commercial sector in 2020,” said Fung Business Intelligence Managing Director Mr. Chang Ka-mun.
Ms. Teresa Lam, Vice President of Asia Distribution and Retail at Fung Business Intelligence, presented to the media the findings, insights and development trends of China’s commercial sector, along with implications for foreign investors.