The Ministry of Commerce held a regular press conference on February 9. Spokesman Sun Jiwen answered the hot issues that concern media at home and abroad. Here is the record:
I. Development Situation and Features of the Online Retail Market in 2016
In 2016, China’s online retail turnover reached RMB 5.16 trillion, up 26.2% year on year. Among these, the online retail turnover of physical commodities was RMB 4.19 trillion, up 25.6% year on year, 15.2 percentage points higher than the growth of total retail sales of consumer goods in the same period. Online retail market continued to maintain a medium and high speed growth, and presented the following features:
1. The growth was rapid. The permeation of online retail increased constantly, the online retail sales of physical commodities accounted for 12.6% of the total retail sales of consumer goods, 1.8 percentage points higher than that of the same period last year. Online retail became the major force that drove the growth of the retail industry. MOFCOM’s monitoring over the major retail enterprises showed the growth rate of online retail was 25.4%, much higher than that of other retails business like department stores, supermarkets and shopping malls.
2. Online retail was becoming mature gradually. Market entities were further optimized. The advantages of B2C were strengthened, accounting for over 55% of online retail business. The competitive modes enjoyed a benign development. Small sized e-commerce platforms in the fields of baby and maternal products, fresh products, cross-border business, home decoration and fashion conducted diversified competition, cultivating advantages in their own industry and clients. Online promotions became more orderly. Large e-commerce platforms no longer conducted “price campaign” and “public relation campaign”, but introduced high quality services, organizing activities like entertainment show and live telecast, and creating an atmosphere of “shopping day” participated by all of the industries.
3. Online retail contributed to supply-side structural reform. Online retail exploited and released consumption potential. Online shopping became more popular in rural areas, and the growth rate of orders from Central and Western China and third-tier cities was higher than the average growth rate, becoming new driving force for consumption. Online retail provided platforms for domestic brands. In the markets of household appliances and mobile phone, domestic brands firmed its dominant position, and traditional brands opened the markets among young clients through e-commerce. Big data of online retail supported custom-made productions, and numerous manufacturing enterprises began “exclusive custom-made” activities. Through studying numerous data accumulated by e-commerce platforms, enterprises introduced new products rapidly to adapt to the consumers’ changing demands.
4. Online and offline sales were constantly promoted. Retail giants were jointly associated to form an integration model with complementary advantages and to promote resources’ optimal configuration in retail industry. E-commerce platforms provide both online and offline channels for shops, realize a new model of “order online, deliver in stores”, “order in stores, distribute from warehouse”, accelerate digitization of traditional business. Service consumption on life service, entertainment, tourism, travel, education and health grew rapidly with innovated model. Share economy like second-hand deal and joint renting saw fast growth. The O2O market size in 2016 grew up 45% year on year.
5. New technology advanced service upgrading. E-commerce platform further consolidated its support and cloud computing service providers improved their processing ability. Technology like unmanned warehouse, autonomous driving and unmanned aerial vehicle also transformed from concept to application, greatly improving logistics efficiency and solving the last kilomoter distribution. The application of new technology also drove innovation of marketing models, big data and artificial intelligence technology support personalized scene and realize directional shopping and promotion targeted at different consumers. Virtual reality and augment reality technology were gradually mature, shortened consumers’ visual perception distance with goods, improve users’ experience and help to make a transaction.
II. The Situation and Characteristics of Automobile Sales in 2016
China’s auto sales in 2016 saw a double-digit growth again. A total of 28,028,000 cars were sold in 2016, up 13.7% year on year, ranking NO.1 in the world for 8 years in a row and hitting a record high. In 2016, sales of automobile above the designated size took up 26.2% of the sales of consumer goods, 0.9 percentage point higher than that in 2015. Auto sales’ leading role continues to stand out and present the following characteristics:
1. Sales of passenger vehicle grew rapidly and enthusiasm for SUV did not wane. In 2016, the sales of passenger vehicle grew up 14.9% year on year, 1.2 percentage points higher than the overall growth and its contribution rate to auto sales reached 94.1%. SUV sales sustained a high-speed growth, up 44.6% year on year.
2. The pulling role of automobiles with small output volume is obvious. Affected by policy of reducing by half the purchase tax of passenger cars with a displacement below 1.6 liters , sales of cars with a displacement below1.6 liters came to 17,607,000, up 21.4% year on year, accounting for 72.2% of the sales of passenger cars, 3.6 percentage points higher than that over the same period of last year and the contribution rate to auto sales reached 97.9%.
3. New energy cars developed fast. Sales of new energy cars in 2016 amounted to 507,000, up 53% year on year. Among these, sales of pure electric cars came to 409,000, up 65.1% year on year.
III. MOFCOM Jointly Issues the Guidance on Promoting Reform and Innovative Development of Lao Zihao with 16 Departments
16 Departments such as the Ministry of Commerce, State Development and Reform Commission, Ministry of Culture, State Administration of Industry and Commerce and General Administration of Quality Supervision have jointly issued the Guidance on Promoting Reform and Innovative Development of Lao Zihao (hereinafter referred to as the Guidance).
“Lao Zihao” is the focus representation of excellent national brand and traditional business culture, possessing unique product, technology and service passed down from generation to generation. Since the launching of “Prospering Lao Zihao Project” in 2006, MOFCOM, together with relevant departments, has carried out a series of work focusing on “building a protection system, promoting system and excavating the connotation of Lao Zihao”. The development environment of Lao Zihao has been constantly optimized and the development situation has been greatly improved. At present, most Lao Zihao enterprises enjoy favorable development momentum, but some enterprises are facing difficulties in development because of rigid mechanism, old concept, insufficient innovation and weak inheritance, etc. Promoting the development of the Lao Zihao enterprises not only can provide common people more good-quality products and service with distinctive characteristics and strong competition power, but also has great significance of profoundly promoting structural reform of supply side, expanding quality consumption and publicizing outstanding Chinese traditional culture.
The Guidance proposed eight tasks from three aspects such as promoting inheritance and innovation of Lao Zihao, strengthening protection of business outlets and pushing forward property right reform. Namely, carry forward excelsior craftsman spirit and maintain the originality of Lao Zihao, implement the project of “Lao Zihao+Internet” and promote the integrated online and offline development, support Lao Zihao innovating operation and management mode and build modern enterprises mechanism, strengthen the protection of relics of Lao Zihao and keep the original business environment, forge special business street of Lao Zihao and promote collective development, promote the reform and institutional innovation of state-owned Lao Zihao system and cultivate leading enterprises of industry, build brand value assessment system and give a full play to the value of Lao Zihao, encourage docking with the capital market and support Lao Zihao in being great and strong.
Next, MOFCOM will profoundly implement the guiding spirit of General Secretary Xi Jinping on “enabling national brand to show extraordinary talents”, regard promoting structural reform of supply side as the main line, carry out and implement the Guidance issued by the 16 departments and ministries as the key, positively push forward Lao Zihao enterprises to increase products varieties, improve quality and create brands, practically improve the supply capability and quality and better meet the demands of the upgrading of people’s consumption. Firstly, efforts will be made to continue to promote Lao Zihao to reform and innovate, promote Lao Zihao enterprises to positively bring in social capital, combine traditional operation mode with modern technology, especially modern information technology such as internet, internet of things and big data, develop new products, attract new customs and tap new markets. Secondly, efforts will be made to vigorously publicize the cultural connotation of Lao Zihao, implement the protection development project of Chinese Lao Zihao, organize the general enterprises to profoundly learn and promote its excelsior craftsman spirit of valuing quality, upholding its business morality of flourishing business by virtue and credibility of Lao Zihao, play the leading role of Lao Zihao. Thirdly, efforts will be made to constantly optimize the development environment of Lao Zihao, build and perfect archives of Lao Zihao, strengthen its self-disciplines, enhance intellectual property protection and policy supporting, and stimulate the self-reliant innovation vigor of Lao Zihao.