China Daily (Canada) - - SHANGHAI -

of the coun­try’s to­tal an­nual consumption in the next five years will be from cit­i­zens born

be­tween 1985 and 1995

re­search at Credit Suisse.

Credit Suisse es­ti­mated that over 60 per­cent of those from the younger gen­er­a­tion in China spend a min­i­mum of three hours surf­ing the In­ter­net on their mo­bile de­vices. Th­ese peo­ple have an av­er­age of 50 ap­pli­ca­tions on their de­vices, with on­line shop­ping apps show­ing the high­est adop­tion rates.

While ap­parel, ac­ces­sories, dig­i­tal goods and gro­ceries re­main the most pop­u­lar items bought on­line by con­sumers from the younger gen­er­a­tion, en­ter­tain­ment prod­ucts such as film and per­for­mance tick­ets, as well as trav­el­ing prod­ucts in­clud­ing ho­tel book­ings and flight tick­ets, are quickly catching up.

Yin noted that a ma­jor­ity of the con­ven­tional con­sumer prod­uct com­pa­nies he and his team have been track­ing re­ported an an­nual growth rate of around 4 per­cent in 2014, about 3 per­cent lower than China’s GDP growth. How­ever, this does not nec­es­sar­ily mean that peo­ple have been cut­ting back on spend­ing. Rather, Yin notes that com­pa­nies in the e-commerce and on­line-tooffl (O2O) sec­tors have seen ex­plo­sive growth in China.

Among all e-commerce seg­ments, Credit Suisse fore­casts that O2O food de­liv­ery ser­vices will grow the fastest, with a com­pound an­nual growth rate of 63.7 per­cent.

The 2014 mar­ket size of 9.51 bil­lion yuan ($1.49 bil­lion) is ex­pected to grow ex­po­nen­tially to 41.75 bil­lion yuan in 2017.

Ac­cord­ing to the re­port, forces driv­ing the ro­bust growth of food de­liv­ery ser­vices in­clude the de­clin­ing will­ing­ness to cook at home, restau­rant chains want­ing to max­i­mize out­put from their kitchens to mit­i­gate es­ca­lat­ing real es­tate prices, and fa­vor­able sup­port from in­vestors.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.