(Yicai Global) Jan. 26 – China's e-commerce industry in rural areas continued to grow significantly last year with total online retail sales reaching CNY1.22 trillion (USD192.7 billion), a surge of 39.1 percent over 2016 with rapid growth in lesser developed areas, commerce ministry data shows.

China's central and western and northeastern countryside areas registered annual growth of 50.4 percent, reflecting the rapid diffusion of online sales to poorer regions, said China's commerce ministry spokesperson Gao Feng in a press briefing yesterday.

The economically developed eastern region accounted for 63.5 percent of total rural sales though growth was slower compared to other regions at 33 percent.

The sector has become a key driver for employment opportunities in countryside regions with the number of online shops reaching 9.85 million, up 20.7 percent on the year before, with over 28 million people employed.

Clothing, shoes and bags, home improvements and furnishings, foods and health products were three most sought-after physical product types sold online in rural areas last year. Online sales of tangible goods hit CNY782.66 billion last year, a 35.1 percent rise annually, representing 62.9 percent of overall online retail sales in non-urban markets.

Rural retail sales of service products logged CNY462.22 billion, a 46.6 percent increase compared to the year before, making up 37.1 percent of total online retail sales. Among them, online travel, online catering and living services were the most popular categories.