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    Retail Sales Slowed Down In Beijing In The First Half Of The Year

    2011/7/16 15:24:00 52

    Foreign Capital Retail

    From the latest development of Beijing's foreign-funded enterprises in the first half of the year, the industrial and commercial bureau of Beijing was informed that the number and number of new businesses in wholesale and retail enterprises decreased in the first half of this year, but the original enterprises increased substantially.

    This is probably due to the sharp rise in house prices.


    According to the city's industrial and commercial aspects, it was received in 2009.

    financial crisis

    The impact of the impact of foreign capital wholesale and retail investment in Beijing has fallen into recession, but in 2010 again back up the trend.

    However, the number and size of new retail and wholesale enterprises have dropped again this year.

    Data show that in the first half of this year, 133 foreign-funded enterprises registered a decrease of 10.13% compared with the same period last year, with a total investment of 134 million 190 thousand US dollars, a registered capital of 89 million 980 thousand USD and a foreign party's authorized contribution of US $75 million 490 thousand, representing a decrease of 53.08%, 44.8% and 52.35% respectively.


    As for the reasons for the slow pace of new foreign-funded stores, many retail enterprises have indicated through different channels that China has increased the entry threshold for retail industry due to the rising land price.

    The hypermarket is usually located in the urban area with high volume of traffic, so establishing a hypermarket in China requires a lot of capital to invest in real estate and infrastructure construction.


    It has been reported that many retail enterprises have changed their development strategies due to the rising land prices and other factors.

    It has two famous brands: big RFA and Auchan.

    Retail products

    Gao Xin, a retail retailer, said in its prospectus that its expansion plan has developed from a focus on the first tier cities to the suburbs of the second tier and Nanjing, Suzhou, Lanzhou and other tier cities.

    It has also been reported recently that foreign retailers, represented by WAL-MART and IKEA, have abandoned their rental strategy for ten years because of the rapid rise in rents, instead of buying land in China to expand their store size.


    According to the data released by the Municipal Industrial and commercial bureau, the activity of foreign capital mergers and acquisitions in Beijing has increased.

    It is understood that in the first half of Beijing, domestic capital pferred to 43 foreign-funded enterprises, an increase of 7.5% over the same period last year.

    The industry is concentrated in scientific research, wholesale and retail, leasing and business services.

    The expansion of M & A of foreign capital is becoming more and more active, which may be related to the change of development strategy after the increase of shop cost.

    From the new establishment

    foreign capital

    In the case of enterprises, China, Hongkong, Japan and the United States remain the main investors.

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