China’s first-quarter online retail sales expand, with travel sector doubling in post-Covid rebound
- Online retail sales for the period rose 12.4 per cent year on year to US$456 billion, driven in large part by service-based consumption
- Domestic travel is on track for another boom for the upcoming May Day holiday, with advance airfare bookings soaring past pre-pandemic levels
China’s online retail market expanded in the first quarter, led by a rebound in sectors such as online travel as well as robust cross-border e-commerce trade, the country’s commerce ministry said on Friday.
Online retail sales for the period rose 12.4 per cent year on year to 3.3 trillion yuan (US$456 billion), driven in large part by service-based consumption, according to data published on the website of China’s Ministry of Commerce.
Online travel led the surge, nearly doubling year-on-year growth in the quarter, while the online food category – including food delivery and restaurant reservation services – grew 27.8 per cent over the same period, as pent-up demand for travel and dining were unleashed as life returned to normal after three years of the Covid-19 pandemic.
Sales of smart wearable gadgets were another highlight, jumping 30.9 per cent year on year in the quarter, while online retail sales of agricultural products grew 28.2 per cent.
The commerce ministry also said its initiative to stimulate sales of consumer goods such as home appliances and cars through a trade-in programme coordinated with the country’s major e-commerce platforms has seen preliminary results, as online purchases of trade-in merchandise more than doubled.
As part of its efforts to drive growth in an economy where the post-Covid recovery has been uneven, the Chinese government has tried to boost domestic demand and consumption by encouraging consumers to trade-in and upgrade their existing home appliances and vehicles.