Retailing in China - Market Summary and Forecasts
LONDON, July 30, 2015 /PRNewswire/ -- Summary
China has huge potential for retailers. The GDP growth might have slowed but crucially the government's strategy is to shift from being a manufacturing and export-driven economy to one that is service-based and consumer-led, and that encourages higher rates of consumer spending. This latest report from retail specialists Conlumino provides a comprehensive overview of the market, consumer, and competitive context of the retail industry in China. In addition to analysis of the emerging trends and opportunities, the report contains historic and forecast market data to 2019 of the retail sales of 26 different product segments across key channels.
The report provides :
- Extensive analysis of consumer trends, changing economic and population factors.
- An investigation of the influence of the internet and technology in the Chinese retail industry.
- Both qualitative and quantitative insights on the changing retail dynamics across various product segments and across different channels.
- An in-depth analysis of 26 product categories and 17 retail channels, until 2019.
- An overview of key retailers operating across the main product segments and their presence across channels.
Key Findings
- What key factors are driving retail demand in the Chinese market?
- Which specific expansion plans from Chinese retailers are forecast to drive further growth?
- What key shift is creating new opportunities for both value for money and premium products?
- What does the report identify as a key channel for retailing over the next five years?
- In which measure of economic activity is China is set to surpass South Korea in 2019?
- What is expected to drive spending on clothing and footwear?
- Who is forecast to dominate the food and grocery category in the Chinese retail market?
Synopsis
China is the world's second largest economy by nominal GDP. According to the latest estimates released by the International Monetary Fund (IMF) in 2014; China has become the largest economy in the world, surpassing the US by purchasing power parity (PPP). Unlike Western economies, China's economy, though it stalled, did not suffer a recession in 2009 and continued on its path of double digit growth, (based on US dollar values). However, China's GDP is increasing with a declining growth rate. According to the National Bureau of Statistics, China's GDP has grown only 7.4% in the fiscal year 2014, closely missing the government's target of 7.5% and it's the lowest ever recorded rate in the past 24 years.
Despite sluggish economic growth, retail sales have registered an 11% increase. A significant contribution to retail sales has come from the online platform as Chinese consumers are more eager to shop online. Strong consumer spending has become one of the major reasons for the Chinese economic growth. The contribution of consumption to the country's GDP is more than the contribution of investments and exports. According to the data from China's National Bureau of Statistics in 2014, consumption has contributed 54.4% to the country's economic expansion while investments contributed 48.5%.
Keeping in view the current economic situation, China has set its GDP at 7% for 2015. However, the Chinese government has come up with a series of measures to boost its economy. The government has cut taxes on small firms and increased export credit insurance to small and medium-sized enterprises. The measures also include lifting home purchase restrictions and easing mortgage rules. The Central Bank has also cut the interest rates for the first time in two years to reduce finance costs. There have been concerns that many of the investment projects across China have high credit risks, but for the immediate future this does not appear to be a problem, though it is worth monitoring
Young male consumers are the key targets for retailers. Furthermore, young Chinese women are more independent, have a much higher share of the workforce than many Western countries, are taking on highly paid senior roles in companies and have less inclination to give up their freedom and independence than their parents. This will impact family life further as they adopt a more Westernized approach, continuing to work, having just one or two children, whilst balancing the two aspects of their lives - creating a need for time saving services and convenience. By 2019 the 65 plus population will increase by 37 million people, reducing the workforce as fewer young people join at the lower end of the scale, which is a key factor in the government's desire to increase the spending and demand of those who remain active.
Reasons To Buy
- Identify which channels and products will be the major winners and losers over the coming years - evaluate based on reliable and comprehensive data coverage of 26 product categories, across 17 retail channels, to target your sales and marketing operations accordingly.
- Evaluate a detailed analysis of vital economic, population, key consumer and technology trends influencing the Chinese retail market - identify where the growth lies, enabling you to assess where, when and how to best execute your strategies and engage with your target audience.
- Identify the most profitable propositions in individual product categories across the key channels in the Chinese retail market - inform your product development, identifying opportunities to improve your market share whilst maximizing your competitive edge.
- Utilise Conlumino's critical insights into Chinese shoppers to inform your branding process and the development of your future sales and marketing strategies.
- Analyse key international and domestic players in the Chinese retail market - investigate your competitors, comparing their operations and best practice to your own activities, ensuring you align your strategy without missing any of the potential commercial opportunities.
Key Highlights
- Despite sluggish economic situations, the retail sector registers a significant growth
- A rising middle class with increased disposable income and altering lifestyles are driving retail demand
- Retailer's expansion plans in tier lll and tier lV cities will drive further growth
- A changing shopping mode from functional, deal driven to emotional, status driven, is creating new opportunities for both value for money and premium products
- Online platform will be a key channel for retailing over the next five years
- China is set to surpass South Korea as the largest Duty Free market in 2019
- A strong affinity towards brands and increasing fashion consciousness will result in more spending on clothing and footwear
- The food and grocery segment will continue to be dominated by local players
Download the full report: https://www.reportbuyer.com/product/3024822/
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