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China's consumer and retail industry is undergoing rapid growth on rising personal income and an economic structure leaning toward consumer spending. This competitive market has nurtured a spate of domestic retailers and attracted foreign retailing giants, such as Walmart, Carrefour, Tesco and Metro, to have made a presence in the country.
Although China was believed to be the world's second largest spender on luxury goods in 2010, the overall retail sector is expected to be held back by ingrained saving culture, unreasonably high property prices and the so-called middle income trap in the future.
In 2010:
- Consumer price index was 3.3% with food prices up 7.2% from 2009;
- Total retail sales grew 18.4% to ¥15.46 trillion;
- Urban retail sales were up 18.8% to ¥13.37 trillion and rural retail sales up 16.1% to ¥2.09 trillion;
- Restaurant receipts grew 18% to ¥1.76 trillion;
- Retail spending on food, beverages and alcohols was up 24.5% to ¥731.6 billion;
- Retail spending on clothing, shoes and caps was up 24.8% to ¥587.4 billion;
- Retail spending on cosmetics was up 16.6% to ¥88.9 billion;
- Retail spending on jewelry was up 46% to ¥126.1 billion;
- Retail spending on fast moving consumer goods was up 25.1% to ¥203.3 billion;
- Retail spending on sports and entertainment was up 20.1% to ¥29.9 billion;
- Retail spending on household appliances was up 27.7% to ¥405.6 billion;
- Retail spending on medicines was up 23.5% to ¥298 billion;
- Retail spending on stationery was up 23.5% to ¥112.3 billion;
- Retail spending on furniture was up 37.2% to ¥70.5 billion;
- Retail spending on telecoms devices was up 21.8% to ¥79.2 billion;
- Retail spending on petroleum was up 34.3% to ¥1.04 trillion;
- Retail spending on vehicles was up 34.8% to ¥1.67 trillion;
- Retail spending on building materials was up 32.3% to ¥76 billion.
In 2010, China's top 100 retailers by revenue
- Posted ¥1.66 trillion in revenues, up 21.2% from 2009; the rate was 2.8 faster than overall retail sales growth;
- Accounted for 11% of overall retail sales;
- Were operating a total of 150,000 stores by the end of 2010, up 9.8% from 2009;
- Saw rents increase 30% and labor cost increase 15% from 2009;
- Saw online sales total ¥3 billion;
- Department store operates saw sales increase 23.2% from 2009, well above supermarket operators' 13.8%;
The top five mainland-listed retailers by market value are
- Suning Appliance Co (SHE: 002024), China's largest chain store by revenue, based in Nanjing, Jiangsu
- Shanghai Friendship Group Inc (SHA: 600827), a department store operator based in Shanghai
- Yonghui Superstores Co (SHA: 601933), a supermarket chain based in Fuzhou, Fujian
- Rainbow Department Store Co (SHE: 002419), a department store operator based in Shenzhen, Guangdong
- Chongqing Department Store Co (SHA: 600729) a department store operator based in Chongqing
China's consumer and retail industry is undergoing rapid growth on rising personal income as well as favorable government policies meant to spur consumer spending. The highly competitive market has nurtured a spate of domestic retailers and attracted foreign retailing giants, such as Walmart, Carrefour, Tesco and Metro, all of which have a significant presence in the country.
Although China’s retail sector continues to see strong growth especially in the area of luxury goods, growth has been held back by a strong culture of saving, unreasonably high property prices and the so-called middle income trap in the future.
In 2010:
Consumer price index was 3.3% with food prices up 7.2% from 2009
Total retail sales grew 18.4% to ¥15.46 trillion;
Urban retail sales were up 18.8% to ¥13.37 trillion and rural retail sales up 16.1% to ¥2.09 trillion;
Restaurant receipts grew 18% to ¥1.76 trillion;
Retail spending on food, beverages and alcohols was up 24.5% to ¥731.6 billion;
Retail spending on clothing, shoes and caps was up 24.8% to ¥587.4 billion;
Retail spending on cosmetics was up 16.6% to ¥88.9 billion;
Retail spending on jewelry was up 46% to ¥126.1 billion;
Retail spending on fast moving consumer goods was up 25.1% to ¥203.3 billion;
Retail spending on sports and entertainment was up 20.1% to ¥29.9 billion;
Retail spending on household appliances was up 27.7% to ¥405.6 billion;
Retail spending on medicines was up 23.5% to ¥298 billion;
Retail spending on stationery was up 23.5% to ¥112.3 billion;
Retail spending on furniture was up 37.2% to ¥70.5 billion;
Retail spending on telecoms devices was up 21.8% to ¥79.2 billion;
Retail spending on petroleum was up 34.3% to ¥1.04 trillion;
Retail spending on vehicles was up 34.8% to ¥1.67 trillion;
Retail spending on building materials was up 32.3% to ¥76 billion.
In 2010, China's top 100 retailers by revenue
Posted ¥1.66 trillion in revenues, up 21.2% from 2009; the rate was 2.8 faster than overall retail sales growth;
Accounted for 11% of overall retail sales;
Were operating a total of 150,000 stores by the end of 2010, up 9.8% from 2009;
Saw rents increase 30% and labor cost increase 15% from 2009;
Saw online sales total ¥3 billion;
Department store operates saw sales increase 23.2% from 2009, well above supermarket operators' 13.8%;
The top five mainland-listed retailers by market value are
Suning Appliance Co (SHE: 002024), China's largest chain store by revenue, based in Nanjing, Jiangsu
Shanghai Friendship Group Inc (SHA: 600827), a department store operator based in Shanghai
Yonghui Superstores Co (SHA: 601933), a supermarket chain based in Fuzhou, Fujian
Rainbow Department Store Co (SHE: 002419), a department store operator based in Shenzhen, Guangdong
Chongqing Department Store Co (SHA: 600729) a department store operator based in Chongqing <-->
@2011 China Economy @ The China Perspective.
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