In 2012, the economic outlook has gradually shifted away from the export-oriented model and toward domestic consumption and this is especially true in South China. The retail food sector kept growing but faced a number of new challenges. Penetration into secondary and third tier cities made the competition fiercer. Urbanization (in particular in rural areas) as well as infrastructure upgrades has fueled the consumption market. The total
population of five South China provinces (Guangdong, Hunan, Fujian, Guangxi, and Hainan) reached 270 million, accounts to over one fifth of China’s total population. In 2012, Guangdong’s per capita GDP surpasses $8,500 (RMB 54,095), a 7-percent increase compared to the previous year. Both the size of the middle class and overall income levels have increased. The per capita GDP of Guangzhou, for example, hit $17,138 (RMB 109,000) and is
leading the region’s average by two percent which is now higher than Beijing and Shanghai. Massive infrastructure and industrial investment projects have driven the region’s economic growth. In recent years, Hunan Province committed $12 billion (RMB 75 billion) in investments projects targeting railways, highways, waterways and other transportation infrastructure. During the economic slowdown, Fujian was seeking new growth opportunities by emphasizing fisheries processing products in the national retail sector.
