Chinese online sales are tipped to reach US$1.17 trillion by 2020, according to new research by Goldman Sachs.
That compares with $750 billion in 2016.
“While there have been concerns of a slowdown following the deceleration in growth to mid-20 per cent in 2016, we expect online retail growth to sail on at 23 per cent CAGR over 2016-2020, continuing to grow at nearly triple the pace of offline retail,” the financier said in a research paper.
And it says the internet’s share of total retail sales will climb from 16 per cent in 2016 to 25 per cent in 2020 – representing an increase in its protection of just a year ago.
Augmented reality and virtual reality will help fuel a rise in apparel sales online from 31 per cent of the total market last year to 49 per cent by 2020.
Goldman Sachs also predicts that the average spend will grow at a combined annual growth rate of 10 per cent from 2016 through 2020 as incomes grow and as consumers buy a wider range of products and more branded goods through the internet.