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    China Has Become A New &Nbsp In The Global Retail Industry, And Consumers Are Pursuing Diversification.

    2010/11/23 13:09:00 31

    Global Retail Consumers

       In 2010 Global commercial real estate The report released by CB Richard Ellis shows that China has become a new height of the global retail industry, and the retail market of major cities in China will maintain a strong trend in the medium and long term.


       Ma Xueming, director of China Research Division of the world bank, said China's major cities retail market Active and predictable, from 2010 to the first half of 2011, there will be strong development trends.


    China's GDP has achieved an average annual compound growth rate of 9.9% over the past 10 years. Sustained economic growth and uninterrupted urbanization are driving China's rising ranking in the world's wealth countries. According to a recent research report from Credit Suisse, China's total household wealth has ranked third in the world so far, accounting for about 20% of Japan's total, but it is about 35% of France's fourth.


    The increasing consumption power of Chinese consumers has promoted the domestic market. Retail The rapid development has triggered a change in consumption patterns. Chinese consumers are now pursuing a more diversified shopping experience, including leisure. The luxury market has grown rapidly in the past 6 years. The proportion of food consumption from 50% in 1995 to 38% in 2008 has further confirmed this trend.


    These strong Chinese economic and market fundamentals give global retailers ample reason to enter the Chinese retail market. Over the past 20 years, all kinds of large global retailers have entered China. With the maturing of retail environment in China's second and three tier cities, retailers no longer limit their business scope to the eastern coastal cities, but gradually expand to inland and western cities.


    According to media reports, the luxury market in China is expected to reach US $14 billion 600 million by 2014, playing a pivotal role in the world. Ma Xueming confirmed that more and more international luxury brands are moving inland from the coastal cities of China. According to the data of CB Richard Ellis, 50% of the international retailers and brands have entered China, ranking the fifth in the world.


    However, according to the latest research data of World Bank Richard, the demand for overseas and domestic retailers continues to be very strong, and some of the second tier cities tracked by them fluctuated in varying degrees in the past 9 months. Some of the second tier and three tier cities are experiencing the throes of excessive supply due to the downward pressure on the market rent level due to the short term supply peak.


    CB Richard Ellis believes that due to the need for these second-tier cities to spanform their mainstream retail models from traditional department stores to modern shopping centers to meet the latest needs of retailers and consumers, labor pains can not be avoided. With the gradual decline of the supply peak and the gradual upgrading of quality retail property, the retail market performance of major cities in China will maintain a strong trend in the medium to long term.

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