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The Department of Market Operation Regulation of MOFCOM recently issued the 2004-2005 Market Development Report of Chinese Consumer Goods, predicting that total retail sales of consumer goods in 2005 would increase by 12.5% compared with last year, proportions to GDP would keep rising to 40%.
The Report pointed out that China ended its transition period in 2005, WTO commitments were basically implemented and the open-up of domestic market was obviously improved. In general, the development environment of Chinese consumer goods market in 2005 would go on with improvement with expanded market consumption scale and more furious competition. International and domestic consumer goods markets would connect more closely with more transmitting channels and deeper influence on each other. Consumption structure of rural and urban residents would upgrade and markets would show a coordinate development status. General level of price would keep steady.
Market of daily necessaries in 2005 would keep steady. Meanwhile, both production and sales of home appliances in 2004 were flourish, exports increased and obtained favorable benefits, under such good background, the Report thought that the market of home appliances of China in 2005 would keep a good momentum of steady development.
The Report predicted that sales of automobiles in 2005 would increase by over 15% on a year-on-year basis, but sales of commercial housing up by more than 20% and catering market maintaining surging.
Besides, the Report analyzed the favorable environment and conditions for the development of 2005 consumer goods market: income of urban and rural residents would go on increasing and consumption would be further enhanced.