Evolving consumer habits signify a different reality

Retail sales of consumer goods have grown at a slower pace this year. From double-digit growth in previous years, retails sales have fallen single-digit growth this year, except for March, sparking concerns that China is experiencing consumption downgrading.

Some people regard the fast rise in the sales of pickled vegetables and pickled mustard this year as evidence of weak consumption. But facts suggest otherwise.

China's consumer goods retail sales are more than 3 trillion yuan ($438.8 billion) a month. Given this huge base, it is impossible to maintain doubt-digit growth over a long period. Besides, the more than 3 trillion yuan does not include service consumption, which has been growing at a fast pace this year and is taking a larger share of the overall social consumption volume.