Online Sales Growth in China

Consumers are spending as online sales growth continues to be robust

Online retail sales growth has decreased to a current YoY growth rate of 30%. Though not a bad rate of growth, specifically for non-physical goods it decreased from the beginning of January 2018. From December 2017 to February 2018 the growth drops from 85% to 48%. Online goods and service is relatively stable at 31%. There was a slight decrease from February 2018 to 31% at the end of July 2018. We believe consumers are still spending online. The decrease shows that consumers are being selective in their spending choices. Total retail sales only have a 5% growth in July 2018. When compared to total retail sales, it is evident that the major growth area in retail is online sales.