26 Mar China’s Biggest Footwear Retailer Warns Country Shifting To Slower Growth
GDP growth of 7.8% last year was a significant decline that “likely marked the end of the high-growth era in the past decade, and the beginning of a moderate-growth era associated with structural adjustment and quality improvement,” the Hong Kong-listed company said.
As for the country’s consumer spending outlook, the company similarly warned of slower gains.
“In our view, on one hand, (the) future growth rate will moderate in the consumer retail market, due to (a) higher base and an overall slowdown of the economy. The decade-long supernormal growth period will not continue,” it said.
“On the other hand, the ultimate drivers of the consumer market are still income growth and an expanding customer base. With overall wages rising, especially for the low income groups, there is an enormous potential in the long run for the consumer retail market.” China’s retail spending expanded 13% last year, according to government figures.