What is the current market size for consumer goods in China and what is the expected growth rate over the next five years 
ucts.
And we believe that as long as we can continuously serve our users well and we will keep growing and thanks to trusting us. So one sector, we are actually we always our priority is in the agricultural sector. Not only is agriculture digitized by mobile Internet, it is also greatest widespread benefit, that's where we can create as a big platform. And we are now China's largest agricultural platform and so in the future we will commit to do more for agriculture sectors and rural communities.
And the other thing, I'd talk to about is -- the future is integrated word online, offline. Yeah, definitely, we are targeting this kind of new word. So I think about it and you really need to look at it wider retail market. So, today China's total retail sales for consumer goods [Phonetic] already reached RMB39 trillion in 2020 and it is expected to grow at 5% per year over the next five years and if you take a look at our number, so our GMV stands and only 4% target. So I believe as consumer behavior of online, offline continue to integrate and an opportunity for us, we definitely will continue to expand.
Tony Ma -- Vice President of Finance
Let me pick up on the second question on Duo Duo Grocery, I guess. And as you mentioned, Duo Duo Grocery we operated as the 3P offering. From an accounting point of view, we generate transaction service revenues for the service provided to our merchants and some farmers. The contribution in Q4 and fiscal year 2020 of Duo Duo Grocery products was immaterial and most of the cost associated of running Duo Duo Grocery operation such as warehouse rental, delivery logistics and captured and our cost of revenues. Just a note, Duo Duo Grocery is a very young business, I mean we we just started with a few months and it is still evolving. But we are very confident about this business model and it brings significant value to our consumers and other participants among this value chain.
And a few key drivers we can think of and on the new e-site, let's take, if we are able to streamline unnecessary layers of the distribution and each layer traditionally would take up a meaningful mark up, so a more efficient supply chain would also mean less of spoilage and all of these factors putting together will definitely bring additional value to the stake for all the participants, the stakeholders to share in this business model. But like I said, the development on the infrastructure on the whole process will take time to be there. So, at this moment profitability won't be a target for us to fix for the grocery.
David Liu -- Vice President of Strategy
Yeah. Toni, I just want to add on top of that to say that at the end of 2020 we are the largest e-commerce platform by users already and as we have always talked about focusing on engagement really is the core of our strategy and we are confident now with an even further enlarged base that continues to grow at good momentum, we should be able to drive even better engagement and Duo Duo Grocery really plays into that by giving us an additional access point to address the needs that we previously couldn't have.
So we have high hopes for the Duo Duo Grocery business because it is integral, it is the expansion of our overall platform and as the model evolves, I think the rules of the different constituents of Duo Duo Grocery ecosystem may also evolve as well. So stay tuned and bear with us, we think this could be tremendous opportunity. We are confident that we will be able to execute, but it will take some iterations to find the perfect model. Why don't we move onto the next question.
Operator
Thank you. The next question comes from the line of Thomas Chong from Jefferies. Please go ahead.
Thomas Chong -- Jefferies -- Analyst
Hi. Good evening. Thanks management for taking my questions. I think in the prepared remarks management comments about Duo Duo Maicai as the merchandise sales, which is a 1P trial business and is sort of a trend to the GMV. So I just want to get a sense about when the business is getting bigger and bigger, should we expect the merchandise sales c
ucts.
And we believe that as long as we can continuously serve our users well and we will keep growing and thanks to trusting us. So one sector, we are actually we always our priority is in the agricultural sector. Not only is agriculture digitized by mobile Internet, it is also greatest widespread benefit, that's where we can create as a big platform. And we are now China's largest agricultural platform and so in the future we will commit to do more for agriculture sectors and rural communities.
And the other thing, I'd talk to about is -- the future is integrated word online, offline. Yeah, definitely, we are targeting this kind of new word. So I think about it and you really need to look at it wider retail market. So, today China's total retail sales for consumer goods [Phonetic] already reached RMB39 trillion in 2020 and it is expected to grow at 5% per year over the next five years and if you take a look at our number, so our GMV stands and only 4% target. So I believe as consumer behavior of online, offline continue to integrate and an opportunity for us, we definitely will continue to expand.
Tony Ma -- Vice President of Finance
Let me pick up on the second question on Duo Duo Grocery, I guess. And as you mentioned, Duo Duo Grocery we operated as the 3P offering. From an accounting point of view, we generate transaction service revenues for the service provided to our merchants and some farmers. The contribution in Q4 and fiscal year 2020 of Duo Duo Grocery products was immaterial and most of the cost associated of running Duo Duo Grocery operation such as warehouse rental, delivery logistics and captured and our cost of revenues. Just a note, Duo Duo Grocery is a very young business, I mean we we just started with a few months and it is still evolving. But we are very confident about this business model and it brings significant value to our consumers and other participants among this value chain.
 And a few key drivers we can think of and on the new e-site, let's take, if we are able to streamline unnecessary layers of the distribution and each layer traditionally would take up a meaningful mark up, so a more efficient supply chain would also mean less of spoilage and all of these factors putting together will definitely bring additional value to the stake for all the participants, the stakeholders to share in this business model. But like I said, the development on the infrastructure on the whole process will take time to be there. So, at this moment profitability won't be a target for us to fix for the grocery.
David Liu -- Vice President of Strategy
Yeah. Toni, I just want to add on top of that to say that at the end of 2020 we are the largest e-commerce platform by users already and as we have always talked about focusing on engagement really is the core of our strategy and we are confident now with an even further enlarged base that continues to grow at good momentum, we should be able to drive even better engagement and Duo Duo Grocery really plays into that by giving us an additional access point to address the needs that we previously couldn't have.
So we have high hopes for the Duo Duo Grocery business because it is integral, it is the expansion of our overall platform and as the model evolves, I think the rules of the different constituents of Duo Duo Grocery ecosystem may also evolve as well. So stay tuned and bear with us, we think this could be tremendous opportunity. We are confident that we will be able to execute, but it will take some iterations to find the perfect model. Why don't we move onto the next question.
Operator
Thank you. The next question comes from the line of Thomas Chong from Jefferies. Please go ahead.
Thomas Chong -- Jefferies -- Analyst
Hi. Good evening. Thanks management for taking my questions. I think in the prepared remarks management comments about Duo Duo Maicai as the merchandise sales, which is a 1P trial business and is sort of a trend to the GMV. So I just want to get a sense about when the business is getting bigger and bigger, should we expect the merchandise sales c