Consumption expo set to bolster growth
China’s consumption market still holds enormous potential, and digital, green and healthy consumption are expected to become important drivers to promote the expansion of the market and boost economic growth.
Industry experts and top executives made the remarks at the fourth China International Consumer Products Expo in Haikou, Hainan province, this month.
Fueled by the massive consumption growth potential of the country, major foreign companies said they would continue to increase investment in Hainan Free Trade Port and inject new vitality into the China market.
The French spirits and wine maker Pernod Ricard, attending the expo for the fourth consecutive year, said it would continue to deepen the market layout in Hainan and promote sustainable development in the province.
The group, which enjoyed 6% year-on-year growth in China last year, said it will focus on premium and diversified products in the years to come.
“Pernod Ricard has witnessed Hainan’s rapid development and vitality,” said Jerome Cottin-Bizonne, chief executive officer of Pernod Ricard China.
“We’re looking forward to introducing more high-quality products and exquisite experiences to the Chinese market. China is Pernod Ricard’s second-largest market, where we have had a presence for over 30 years. We will respond promptly to an everevolving market demand in the country.”
The consumer expo is China’s first significant international expo this year and the largest consumer expo in the Asia-Pacific region in terms of scale. More than 4,000 brands, a record high, from 71 countries and regions attended this year’s event.
Sheng Qiuping, vice-minister of commerce, said China has a population of 1.4 billion and a middle-income group of more than 400 million people, and per capita annual GDP has exceeded $12,000, making it a consumer market with the highest growth potential globally.
The Chinese economy is highly resilient, has great potential and vitality, and the long-term growth fundamentals are unchanged, he said.
In the first quarter of this year total retail sales of consumer goods in the country were worth 12.03 trillion yuan ($1.66 trillion), 4.7% more than in the corresponding period last year, the National Bureau of Statistics said.
Denis Cheng, consumer sector leader of Ernst & Young China, said the Ministry of Commerce has designated 2024 as the year of consumption promotion, and this year will be important in stimulating consumption potential, expanding consumption scale and improving consumption quality.
The skin care group Estee Lauder of the United States said Hainan is one of the most popular travel destinations, and it has provided exciting business growth opportunities for global retail brands.
Israel Assa, global president of travel retail at Estee Lauder Companies, said that last year Estee Lauder built its travel retail headquarters for China in Haikou to support its travel retail business in the country and the Asia-Pacific region.
The company’s research and development center in Shanghai plans to develop more beauty products catering to Chinese consumers, he said.