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China: Retail Industry Expanding And Facing Competition
Jun 21, 2007

The latest study made by China Association of Chain Management showsand , as published inby news by China Economic Net, shows that enteringin the year 2007, foreign-funded retail chain enterprises are opening new stores, adopting co-operation, acquisitions and other ways to speed up expansion in China. The country's retail chain enterprises, faced with new competition, are increasing their strength and becoming stronger & bigger through cooperation and integration.

Various iIndustry experts are predicting that competition in Chinese retail chain industry in China will further become intensify e further as the year progresses. In recent years, some big foreign enterprises have expanded their retail base chain growth in China and they have performed far better than the domestic retail stores.

Chinese retail industry is growing has shown northward upward development from or many years now. Fast changing Quickly varying consumer buying patterns of consumer and increasing per capita earnings in China is spurring the industry growth.

Competition in the retail market in South China is getting more and more severe, as big global and regional retailers have opened new stores in major metropolitans like Fuzhou, Shenzhen, Guangzhou, etc. Besides competition between these international companies, the competition amongst the domestic retailers is has also tough.

Due to stiff Facing competition, in future, both domestic and international retailers will adopt are practicing a similar approach in future i.e., rapid expansion and opening as many outlets as possible.

China's retail sector is has a fragmented arrangement, where the unorganized segment has nearly an equal stand with foreign organized retailers. Still, industry experts believe consider that foreign chain retailers are more capable of turning varying the competition towards themselves. direction.

Domestic chain retailers of China should perform go for trans-regional growth to face challenges and grab seize opportunities. As China faces healthy foreign competition, it would survive the contest through inorganic growth acquisitions, mergers and reorganization.

Some industry experts say that setting up large retailing companies is another method for domestic chain retailers to endure fierce competition.

"Growth of China's retail chain market would go into a strategic revolving phase after the year 2007. The retailers should focus more on efficiency enrichment rather than on sales expansion. Facing overseas competition, China's retail chains should subdivide the industry further, secure their position and should also pay more attention in to training qualified human resources. In 2007, expansion and integration will be the subject of retail chain market in China for both international and domestic enterprises," an analyst at RNCOS said.