Dramatic changes in people's consumption patterns and habits vividly exemplify the improvement of people's livelihoods over the past 40 years of reform and opening up. Over the past four decades, the consumer market has continuously expanded, with total retail sales of consumer goods in China increasing from 155.9 billion yuan ($22.4 billion) in 1978 to 36.63 trillion yuan ($5.27 trillion) in 2017. This realizes an average rise of 15 percent year on year.

The structure of consumption has continued to upgrade and the relationship between supply and demand has undergone fundamental changes, with the era of supply shortage gone forever. At present, consumption has become the primary driver of economic growth, with the consumer spending making up 78 percent in the first three quarters this year.

The growth of consumption has pushed forward the transformation of the retail industry. From brick-and-mortar stores to online-offline integration, the retail industry is providing consumers with an increasingly wider variety of options, enabling Chinese customers to have improved customized consumer experience.

In addition, smart retail, a sales mode centered on the consumer experience which uses big data to accurately gauge consumers' needs, is also taking shape in China. The retail industry and consumption patterns will continue to drive the development of China's consumer market in the future.

(This is an edited excerpt of an article originally published in Oriental Outlook on November 29)