Summary
Retail in China has enjoyed double digit growth for over a decade as the country enjoys positive economic growth, rising disposable incomes and growing incomes. The global recession slowed growth but as the middle classes expand, retailers have spread to second and third tier cities, and online shopping takes off, spending will increase as more consumers have greater access and inclination to spend. As the younger population matures and takes on higher paid employment than their parents' generation, spending and volumes will continue to increase.
Key Findings
- Despite the sluggish economic situation, the retail sector registers a significant growth
- A rising middle class with increased disposable income and altering lifestyles are driving retail demand
- Retailer's expansion plans in tier lll and tier lV cities will drive further growth
- A changing shopping mode from functional, deal driven to emotional, status driven, is creating new opportunities for both value for money and premium products
- Online platform will be a key channel for retailing over the next five years
- China continues to be the second the largest Duty Free market in 2020
- A strong affinity towards brands and increasing fashion consciousness will result in more spending on clothing and footwear
- The food and grocery segment will continue to be dominated by local players
Synopsis
“Retailing in China- Market Summary and Forecasts, 2015-2020” provides data for historic and forecast retail sales, and also includes information on the business environment and country risk related to the Chinese retail environment. In addition, it analyzes the key consumer trends influencing the Chinese retail industry:
What else does this report offer?
- In-depth analysis of the latest trends in consumer shopping, covering the factors driving shopping, consumer insights, market dynamics (covering 26 product categories), and reviews of the latest best practice in online retail site design
- Market insights based on consumer trends, changing economic and demographic factors, technology innovations, and other macroeconomic factors
- Retail sales and fastest-growing product categories including Clothing, Footwear, Books, News and Stationery, Electrical and Electronics, Food and Grocery, Health and Beauty, Furniture and Floor Coverings, Home and Garden Products, Music, Video and Entertainment Software, Sports and Leisure Equipment, Jewelry, Watches and Accessories, and Luggage and Leather Goods
- Qualitative and quantitative insights of changing retail dynamics across various channels
Reasons To Buy
- Gain comprehensive knowledge on 26 products across 12 product sectors in the Chinese retail market and develop a competitive advantage around consumer behavior trends from the start of your supply chain
- Explore novel opportunities that will allow you to align your product offerings and strategies to meet demand by analyzing the vital economic and population trends, key consumer, and technology trends influencing the retail market
- Investigate current and forecast behavior trends in each category to identify the best opportunities to exploit
- Analyze the recommended actions to align your marketing strategies with the crucial trends influencing consumer behavior
- Understand the fastest-growing categories in the market with insights on performance of individual product categories, across key channels from 2009, with forecasts until 2019
- Analysis of key international and domestic players operating in the Chinese retail market - including store counts and revenues that give you a competitive edge - and identify opportunities to improve your market share
Table Of Contents
1 Introduction
1.1 What is this Report About?
2 Executive Summary and Outlook
3 Market Context
3.1 A steady economy with major growth potential for retailers
3.1.1 China's economy is increasing despite a declining growth rate
3.1.2 Savings are always a top priority for Chinese
3.1.3 Employment shift from unskilled to skilled, rural to urban, manufacturing to service industries
3.1.4 Inflation rate remains as a major concern
3.1.5 Household consumption trebles driving spending power
3.2 Large population with growing prosperity makes China a big attraction for retail
4 Chinese Shoppers
4.1 From functional to emotional
4.2 More opportunity for niche brands and mass market retailers
4.3 Shopping - a leisure activity
4.4 Two major events drive retail spend in China
4.5 High adoption of smartphones and tablets for shopping
4.6 Counterfeiting forces consumers to trade up to premium for quality assurance
4.7 Tourism /travel increases awareness of international brands
4.7.1 China remains as the second largest Duty Free market in 2020
5 Doing business in China
5.1 Summary
5.2 Anti-corruption crackdown requires careful handling for foreign businesses
5.3 Complex licensing procedures a hindrance for foreign retailers
5.4 Favourable tax structure to encourage domestic and foreign investments
5.5 Impact of government regulations on the luxury market
6 Internet and technology
6.1 Growing internet penetration will lead to a surge in the number of online shoppers
6.2 Improved broadband infrastructure will encourage online shopping
6.3 Chinese consumers are relying on mobiles for online shopping
7 Retail Topline
7.1 Total Retail
7.1.1 Retail sales value and growth
7.1.2 Online Sales and Growth
7.2 Summary of product sectors
7.2.1 Share of key product sectors
7.2.2 Key product sectors
7.3 Summary of channels
7.3.1 Spend per Channel
7.3.2 Online Penetration of Key Product Sectors
8 Retail - Product Sectors
8.1 Product Sector Analysis
8.1.1 Clothing
8.1.2 Footwear
8.1.3 Books, News and Stationery
8.1.4 Electrical and Electronics
8.1.5 Food and Grocery
8.1.6 Health and Beauty
8.1.7 Furniture and Floor Coverings
8.1.8 Home and Garden Products
8.1.9 Music, Video and Entertainment Software
8.1.10 Sports and Leisure Equipment
8.1.11 Jewelry, Watches and Accessories
8.1.12 Luggage and Leather Goods
9 Retailers
9.1 Clothing
9.2 Footwear
9.3 Books, News and Stationery
9.4 Electrical and Electronics
9.5 Food and Grocery
9.6 Health and Beauty
9.7 Furniture and Floor Coverings
9.8 Home and Garden Products
9.9 Music, Video and Entertainment Software
9.1 Sports and Leisure equipment retailers
9.11 Jewelry, watches and accessories retailers
9.12 Luggage and Leather Goods
10 Appendix
10.1 Definitions
10.1.1 This report provides 2014 actual sales; while forecasts are provided for 2015 - 2020
10.2 Summary Methodology
10.2.1 Overview
10.2.2 The triangulated market sizing method
10.2.3 Industry surveys in the creation of retail market data
10.2.4 Quality control and standardized processes
10.3 About Verdict Retail
10.4 Disclaimer
List Of Tables
Table 1: Custom Duty Rates and Consumption Tax Rates of Luxury Goods
Table 2: Major Domestic Retailers in China
Table 3: Major International Retailers in China
Table 4: Key Clothing Retailers in China
Table 5: Key Footwear Retailers in China
Table 6: Key Books, News and Stationery Retailers in China
Table 7: Key Electrical and Electronics Retailers in China
Table 8: Key Food and Grocery Retailers in China
Table 9: Key Health and Beauty Retailers in China
Table 10: Key Furniture and Floor Coverings Retailers in China
Table 11: Key Home and Garden Products Retailers in China
Table 12: Key Music, Video and Entertainment Retailers in China
Table 13: Key Sports and Leisure equipment Retailers in China
Table 14: Key Jewelry, watches and accessories Retailers in China
Table 15: Key Luggage and Leather Goods Retailers in China
Table 16: China Exchange Rate CNY-USD (Annual Average), 2010-2015
Table 17: China Exchange Rate CNY-USD (Annual Average), 2016-2020 Forecasts
Table 18: Verdict Retail Channel Definitions
Table 19: Verdict Retail Category Definitions
Lisst Of Figures
Figure 1: GDP Value (US$ Billion), 2010-2015
Figure 2: Growth Rate of GDP (%), 2010-2015
Figure 3: GDP Value and Growth (CNY billion, %), 2010-2015
Figure 4: Forecasts for GDP Value and Growth (CNY Billion, %) 2015-2020
Figure 5: Gross Domestic Savings Rate as Share of GDP (%), 2005-2015
Figure 6: Share of Employment by Sector (% of Total Labor Force), 2005 and 2015
Figure 7: Unemployment Rate (% of Total Labor Force), 2005-2015
Figure 8: Inflation Growth Rates (%), 2005-2015
Figure 9: Household Consumption Expenditure of China (CNY Billion), 2005-2015E
Figure 10: Household Consumption Expenditure of Major Countries (US$ Billion), 2015
Figure 11: Growth of Household Consumption Expenditure (%), 2005-2015
Figure 12: Rural and Urban Populations (millions) 2005, 2015 and 2020
Figure 13: Total Population and Growth Rate (Millions, %), 2005-2020
Figure 14: Population Split by Gender (%), 2015 and 2020
Figure 15: Population Split by Age Group (%), 2015 and 2020E
Figure 16: Per Capita Spend on Retail (CNY), 2005 and 2015
Figure 17: Per Capita Spend on Retail by Age Group (%), 2005 and 2015
Figure 18: The Changing Chinese Shopper
Figure 19: Chinese New Year sales 2011-2016
Figure 20: Single Day sales 2010-2015
Figure 21: Smartphone users and penetration in China 2014-2019e
Figure 22: Top 10 Tourist Destination for Chinese in 2015
Figure 23: Major Cities with High Spend on Retail
Figure 24: Top 10 Duty Free markets by value, 2015 and 2020 (US$ billion)
Figure 25: Key Components of Doing Business in China Matrix
Figure 26: Individual Income Tax and Enterprise Income Tax Rates in China
Figure 27: Key Market Entry Requirements for China 2015
Figure 28: Total Number of Internet Users and Growth Rate (Millions,%), 2005-2015
Figure 29:Total Number of Fixed Broadband Users and Penetration (Millions, %), 2005-2015
Figure 30:Total Number of Mobile Phone Users and Penetration (Millions, %), 2005-2015
Figure 31: Estimated monthly active users in 2015
Figure 32: Bluetooth fitness tracker getting fixed in the shoe heel
Figure 33: Retail Sales Value and Growth (CNY Billion, %) 2005-2015
Figure 34: Retail Sales as % of Total Consumer Spend (%), 2005 and 2015
Figure 35: Total Retail Sales and Growth Rate (CNY Billion, %), 2015 and 2020
Figure 36: Online Sales and Growth Rate (CNY Billion, %) 2015 - 2020
Figure 37: Share of Key Product Sectors (%), 2015 and 2020
Figure 38: Growth Rate of Key Product Sectors vs Growth of Total Retail (%), 2015-2020
Figure 39: Value Growth of Key Product Sectors (CNY Billion), 2015-2020
Figure 40: Spend Per Channel 2015 and 2020
Figure 41: Online Penetration of Key Product Sectors (%), 2015
Figure 42: Online Penetration of Key Product Sectors (%), 2020
Figure 43: Share of Clothing in overall Retail 2015 and 2020
Figure 44: Retail Sales Value and Growth (CNY Billion, %) of Clothing 2015-2020
Figure 45: Spend per Head on Clothing 2015 and 2020
Figure 46: Share of Clothing by Womenswear, Menswear and Childrenwear 2015 and 2020
Figure 47: Womenswear Sales Value and Growth (CNY Billion, %) 2015-2020
Figure 48: Menswear Sales Value and Growth (CNY Billion, %) 2015-2020
Figure 49: Childrenwear Sales Value and Growth (CNY Billion, %) 2015-2020
Figure 50: Online Spend in Clothing 2015-2020
Figure 51: Online Share of Total Clothing Spend 2015 and 2020
Figure 52: Spending per Channel in Clothing (%) 2015 and 2020
Figure 53: Share of Footwear in overall Retail 2015 and 2020
Figure 54: Retail Sales Value and Growth (CNY Billion, %) of Footwear 2015-2020
Figure 55: Spend per Head on Footwear 2015 and 2020
Figure 56: Share of Footwear by Women's Footwear, Men's Footwear and Children's Footwear 2014
Figure 57: Women's Footwear Sales Value and Growth (CNY Billion, %) 2015-2020
Figure 58: Men's Footwear Sales Value and Growth (CNY Billion, %) 2015-2020
Figure 59: Children's Footwear Sales Value and Growth (CNY Billion, %) 2015-2020
Figure 60: Online Spend in Footwear 2015-2020
Figure 61: Online Share of total Footwear Spend 2015 and 2020
Figure 62: Spending per Channel in Footwear (%) 2015 and 2020
Figure 63: Share of Books, News and Stationery in overall Retail 2015 and 2020
Figure 64: Retail Sales Value and Growth (CNY Billion, %) of Books, News and Stationery 2015-2020
Figure 65: Spend per Head on Books, News and Stationery 2015 and 2020
Figure 66: Online Spend in Books, News and Stationery 2015-2020
Figure 67: Online Share of total Books, News and stationery Spend 2015 and 2020
Figure 68: Spending per Channel in Books, News and stationery (%) 2015 and 2020
Figure 69: Share of Electrical and Electronics in overall Retail 2015 and 2020
Figure 70: Retail Sales Value and Growth (CNY Billion, %) of Electrical and Electronics 2015-2020
Figure 71: Spend per Head on Electrical and Electronics 2015 and 2020
Figure 72: Online Spend in Electrical and Electronics 2015-2020
Figure 73: Online Share of total Electrical and Electronics Spend 2015 and 2020
Figure 74: Spending per Channel in Electrical and Electronics (%) 2015 and 2020
Figure 75: Share of Food and Grocery in overall Retail 2015 and 2020
Figure 76: Retail Sales Value and Growth (CNY Billion, %) of Food and Grocery 2015-2020
Figure 77: Spend per Head on Food and Grocery 2015 and 2020
Figure 78: Online Spend in Food and Grocery 2015-2020
Figure 79: Online Share of total Food and Grocery Spend 2015 and 2020
Figure 80: Spending per Channel in Food and Grocery (%) 2015 and 2020
Figure 81: Share of Health and Beauty in overall Retail 2015 and 2020
Figure 82: Retail Sales Value and Growth (CNY Billion, %) of Health and Beauty 2015-2020
Figure 83: Spend per Head on Health and Beauty 2015 and 2020
Figure 84: Online Spend in Health and Beauty 2015-2020
Figure 85: Online Share of total Health and Beauty Spend 2015 and 2020
Figure 86: Spending per Channel in Health and Beauty (%) 2015 and 2020
Figure 87: Share of Furniture and Floor Coverings in overall Retail 2015 and 2020
Figure 88: Retail Sales Value and Growth (CNY Billion, %) of Furniture and Floor Coverings 2015-2020
Figure 89: Spend per Head on Furniture and Floor Coverings 2015 and 2020
Figure 90: Online Spend in Furniture and Floor Coverings 2015-2020
Figure 91: Online Share of total Furniture and Floor Coverings Spend 2015 and 2020
Figure 92: Spending per Channel in Furniture and Floor Coverings (%) 2015 and 2020
Figure 93: Share of Home and Garden Products in overall Retail 2015 and 2020
Figure 94: Retail Sales Value and Growth (CNY Billion, %) of Home and Garden Products 2015-2020
Figure 95: Spend per Head on Home and Garden Products 2015 and 2020
Figure 96: Online Spend in Home and Garden Products 2015-2020
Figure 97: Online Share of total Home and Garden Products Spend 2015 and 2020
Figure 98: Spending per Channel in Home and Garden Products (%) 2015 and 2020
Figure 99: Share of Music, Video and Entertainment Software in overall Retail 2015 and 2020
Figure 100: Retail Sales Value and Growth (CNY Billion, %) of Music, Video and Entertainment Software 2015-2020
Figure 101: Spend per Head on Music, Video and Entertainment Software 2015 and 2020
Figure 102: Online Spend in Music, Video and Entertainment Software 2015-2020
Figure 103: Online Share of total Music, Video and Entertainment Software Spend 2015 and 2020
Figure 104: Spending per Channel in Music, Video and Entertainment Software (%) 2015 and 2020
Figure 105: Share of Sports and Leisure Equipment in overall Retail 2015 and 2020
Figure 106: Retail Sales Value and Growth (CNY Billion, %) of Sports and Leisure Equipment 2015-2020
Figure 107: Spend per Head on Sports and Leisure Equipment 2015 and 2020
Figure 108: Online Spend in Sports and Leisure Equipment 2015-2020
Figure 109: Online Share of total Sports and Leisure Equipment Spend 2015 and 2020
Figure 110: Spending per Channel in Sports and Leisure Equipment (%) 2015 and 2020
Figure 111: Share of Jewelry, Watches and Accessories in overall Retail 2015 and 2020
Figure 112: Retail Sales Value and Growth (CNY Billion, %) of Jewelry, Watches and Accessories 2015-2020
Figure 113: Spend per Head on Jewelry, Watches and Accessories 2015 and 2020
Figure 114: Online Spend in Jewelry, Watches and Accessories 2015-2020
Figure 115: Online Share of total Jewelry, Watches and Accessories Spend 2015 and 2020
Figure 116: Spending per Channel in Jewelry, Watches and Accessories (%) 2015 and 2020
Figure 117: Share of Luggage and Leather Goods in overall Retail 2015 and 2020
Figure 118: Retail Sales Value and Growth (CNY Billion, %) of Luggage and Leather Goods 2015-2020
Figure 119: Spend per Head on Luggage and Leather Goods 2015 and 2020
Figure 120: Online Spend in Luggage and Leather Goods 2015-2020
Figure 121: Online Share of total Luggage and Leather Goods Spend 2015 and 2020
Figure 122: Spending per Channel in Luggage and Leather Goods (%) 2015 and 2020
Figure 123: The Triangulated Market Sizing Methodology
