Retailing in China - Robust growth continues in 2011

Current value growth in retailing remained robust in 2011. The continuous recovery of the economy and increasing household incomes laid solid foundations for the buoyant development of retailing. Meanwhile, the upgrading consumption structure on the part of consumers also fuelled the growth of retailing. However, the climbing consumer price index, due to rocketing inflation rates in 2011, also contributed to the double-digit growth in retailing in current value terms in 2011.

International retailers eye convenience stores

In addition to accelerating their expansion in chained supermarkets and hypermarkets in China in 2010, international grocery retailers were setting their sights on opening convenience stores in urban areas in 2011. Apart from Lawson, which plans to expand its outlets to 10,000 by 2020, Wal-Mart has also announced its plan to open 1,000 more Smart Choice outlets in the coming five years, whilst Tesco will also introduce its Tesco Express brand in China, and is likely to open around 500 outlets in the next five years.

Non-grocery retailing prevails in value sales and overall growth

Non-grocery retailing outperformed grocery retailing in 2011, in terms of both value sales and overall growth. The further penetration of non-grocery retailing into the rural market and urban communities underpinned its outstanding performance in 2011. Meanwhile, the rapid development of non-grocery retailing via the internet, in the format of online shops, also stimulated robust growth. In addition, government stimulus packages such as the Appliance Subsidy Programme for Rural Households, even though it was coming to an end by the end of 2011, also played an important role in boosting non-grocery retailing.

Chained players further extend their leading positions in a fragmented market

Thanks to the vast geography of the country and the complexity of the market, retailing in China was quite fragmented in the review period, with the top three leading players jointly accounting for a value share of only 3% in 2011. However, the three leading players, all chained operators, managed to further consolidate the market and extended their leading positions by optimising their operations and reducing costs.

Vigorous growth momentum is expected to continue in the forecast period

Retailing in China is expected to continue see dynamic growth momentum in the forecast period, thanks to the stable development of the macro-economy and rising disposable incomes. On the other hand, chained operators in retailing, represented by chained electronics and appliance specialist retailers, as well as chained supermarkets and hypermarkets, are also expected to spice up the market with further robust expansion, particularly into lower-tier cities and the rural market.

The Retailing in China market research report includes:

• Analysis of key supply-side and demand trends
• Detailed segmentation of international and local products
• Historic number of stores, selling space and values, company and brand market shares
• Five year forecasts of market trends and market growth
• Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

• How big is the grocery/non-grocery/non-store channel in China?
• Who are the leading retailers in China?
• How is retailing performing in China?
• What is the retailing environment like in China?
• Which channels are winning or losing in the fight for consumers’ money?

Study comprehensive Table of Contents and buy your copy of the report @ http://www.reportsnreports.com/reports/144120-retailing-in-china.html