Transcript of "Simple look on china retail market"
Quick overview of China Retail Market Compiled by Cecilia Wu
China retail sales’ growing trends compared with other Asian counterparts Biggest growing potentials in Asia regionIn US$ billions
China Total Retail Market Size 2008-2015 Its sale size should be USD 3,251 billions in 2012, and expected to reach USD 5,553 billion in 2015 In the next 3 years, maintains double digits growth Retail Sales in China (in US$ billion) growth rate 6000 30% 5,553.00 23.94% 5000 4,670.00 25% 20.67% 3,903.00 4000 20% 18.00% 20.06% 19.70% 18.90% 18.00% 3000 3,251.00 15% 2,755.00 2,283.00 2000 1,842.00 10% 1,561.00 1000 5% 0 0% 2008 2009 2010 2011 2012 2013 2014 2015Source: Economist Intelligence Unit, 2011
Sales of growth in different sectors Food and beverage, tobacco and liquor sales growth accelerated from 2009 Garment, Footwear, household appliances, etc maintains a steady growth Gold, silver and jewelry witnessed higher growth since 2010 as the rising number of luxury consumers in China
General retail formats in China Format Characteristics Example Companies Department stores Popular earlier on, but now losing Golden Eagle, Parkson, Beijing competition edge Cuiwei, Shenzhen Suibao Hypermarket The development has been led by Wal-Mart, international retailers, now spreading Carrefour, Vanguard, Tesco, Metro, their wings to tier 2 and 3 cities, as RT Mart Shanghai markets in tier 1 cities reach saturation Supermarket highly fragmented market dominated A-Best Supermarket in Shenzhen by domestic players, now facing consolidation Convenience store witnessing increasing competition 7-11, Family Mart, Lianhua Quick, Alldays Specialty stores: dominated by domestic players Gome, Suning Electronics/Appliances Online retailing Higher growth and potentials, but with 360buy, Dangdang cut-throat competition Multi Sectors local industry players are gradually Vanguard, Shandong Wuifang transferring from traditional retailers Department Store Group to multi-sector retailers
What are those top retailing players in China?Source: Deloitte, 2011
Some Trends in China RetailThe third and fourth tier cities have become the focus for retailers’rapid expansionMore and more retailers are operating with a combination of bothlarge and small stores, enabling them to serve consumers withdifferent needsMore and more retailers have started expansion to multi-sectorsIntegration of Online and Chain Stores