Small cities fuel rising consumption binge

Consumer pool: People walk in front of a clothing store in Yarkant in north-west China. Higher household income is facilitating growing retail sales. — AFP

Beijing: Recent economic data coming out of China suggest that the world’s second-largest economy is steadily transitioning toward consumption-led development, and in particular, counties and county-level cities are quickly emerging as another key dynamo in China’s consumption engine.

The thirst for upgraded consumption and a confluence of socioeconomic developments – such as rising household incomes, shifting demographic trends and improved product-penetration rates – are facilitating the ascent of counties and county-level cities, said experts and executives.