Tianjin Retail 1H/2019

Tianjin’s economy experienced a slowdown in 2018, with its GDP growing by only 3.6% year-on-year (YoY) to RMB1,881 billion. Tertiary industry accounted for the largest proportion (58.6%) of the economy and grew by 5.9% in 2018; secondary industry (40.5%) on the other hand grew by just 1.0% in 2018. The slowdown occurred amid trade tensions with the United States, supply side reforms particularly in heavy industry, environmental protection reforms and financial de-risking that has put an incredible amount of strain on highly leveraged corporations from the manufacturing sector.

As a result of the slowing economy and weaker consumer confidence, retail sales grew by just 1.7% in 2018 to RMB591.3 billion. The apparel sector saw a YoY increase of 10.5% while the accommodation and F&B sectors increased by 10.8%, down 0.2 of a percentage point (ppt) YoY. The F&B delivery sector was a bright spot however, registering the highest growth rate of 45.8%.

Sales of daily necessities such as food and household goods, as well as culture & entertainment, registered some of the fastest growth rates in 2018, thanks in large part to a growth in e-commerce services.