China’s Retail Market
a report prepared by: British Chamber of Commerce in China/APCO Batey Burn/Beijing COFCO Plaza/UK Trade and Investment
Contents
Introduction
This report provides a general overview of the Chinese retail market. It is not intended as comprehensive; indeed, given China’s size and massive regional variation, it would be virtually impossible to achieve a truly comprehensive overview of what is, in effect, several different markets in one country. Instead, the aim is to capture major trends within the market as a whole, both on a macro scale and in relation to specific retailing formats, and to provide more detailed information on those specific areas that have been the focus of most retailing business to date. These are the three major cities of Beijing, Shanghai, and Guangzhou.
The intended audience for this report is foreign retailers with an interest in China who have yet to enter the Chinese market. In addition to general trends, the report therefore covers information on the regulatory environment for foreign retailers in the country. China’s recent accession to the WTO undoubtedly has profound implications for the retail sector. Nevertheless, liberalisation will be a step-by-step process, and restrictions of various kinds will remain in place for the near future. Any retailer contemplating entering the Chinese market will need a thorough understanding of what these reforms do, and do not, entail.
Finally, there is a brief overview of major foreign retailers already present in China, and some consideration of the serious domestic competition. Additional issues of interest to foreign retailers, such as questions of site selection, are also covered.
