Abstract
This report covers the market for retailing in China. The report covers the
following sectors:
- Department stores
- Supermarkets
- Specialist stores (including clothing and other non-food specialist stores)
- Petrol s tations
- Franchise stores
- Convenience stores
- Warehouse clubs
- Furniture stores
- Others
Based upon our own calculations of a realistic retail market size in China
should be, between 2000 and 2007, China' s total retail market grew 166.44% in
current terms over the review period to RMB4.93trn - representing an annual
average growth rate of 14.74%.
China' s retail market has broadly opened-up to foreign involvement, now
permitted by the government, but there are still restrictions on retailing of
certain goods, notably books and other media, and most foreign retailers are
finding it hard to make any profit. International companies have established
numerous local partnerships over the years, many now being bought out by
foreign parties eager to take full control of their Chinese operations.
Meanwhile, Chinese companies are becoming increasingly competitive in response
to the foreign entrants, often undercutting their competitors to the point of
loss-making.
China' s retail market continues to develop rapidly. New chain store networks
and shopping malls are emerging outside the top three cities of Beijing,
Guangzhou and Shanghai as retailers extend their reach to other firsttier
cities, and now many second- and third-tier cities. There is aggressive
consolidation in the market, as larger operators swallow up smaller players,
while there are equally significant numbers of failures, both retail companies
and shopping malls.
China' s retail market is expected to grow by about 34% between 2008 and 2012,
to reach a total value of over RMB7.54trn.
This report also includes much discussion of what Access Asia considers to be
the key issues for retailing in 2008, these being property prices, product
prices and pay prices: the "Three Ps" as we have termed them. All the new
regulations, along with the rising costs of operation anyway, and the wider
macroeconomic issues, are all combining to push retailer costs up, while
margins are continuing to be squeezed. 2008 will be a tough year for retailers
in China, and narrow profit margins are going to tighten further as the impact
of regulations, such as the new packaging laws, come into effect. Tougher
times ahead in the Chinese retail market, perhaps, but all things are
relative, and the market is still growing very fast, even if slower than
before, and new markets are opening up in the interior provinces.
View Cart
