NEW
YORK, July 9, 2024 /PRNewswire/ -- In
China, the retail market is poised
for substantial growth, expected to increase by USD 1192.7 billion from 2024-2028 at a CAGR of
nearly 8.09%, driven by the premiumization of products and the
shift towards online and omni-channel trade. However, the market
faces challenges like rampant counterfeiting in the premium
segment. Key players shaping this landscape include Alibaba Group
Holding Ltd., JD.com Inc., Walmart Inc., Suning.com Co. Ltd., and
Pinduoduo Inc., alongside other prominent names like Bailian Group,
GOME Retail Holdings Ltd., and Vipshop Holdings Ltd.
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Product (Food and
beverages, Apparel and footwear, Home improvement, Consumer
electronics and appliances, and Beauty and personal care),
Distribution Channel (Offline and Online), and Geography
(APAC)
|
Region
Covered
|
China
|
Key companies
profiled
|
Alibaba Group Holding
Ltd., Bailian Group, Beijing Dangdang Kewen Electronic Commerce Co.
Ltd., China Resources Enterprise Ltd., CK Hutchison Holdings Ltd.,
DFI Retail Group., E Mart Co. Ltd., GOME Retail Holdings Ltd.,
JD.com Inc., Lotte Corp., PetroChina Co. Ltd., Pinduoduo Inc.,
President Chain Store Corp., Quanlian Industrial Co. Ltd., Sun Art
Retail Group Ltd., Suning.com Co. Ltd., Vipshop Holdings Ltd.,
Walmart Inc., and Yonghui Superstores Co. Ltd.
|
Key Market Trends Fueling Growth
In China's retail market,
omni-channel retailing is gaining popularity as vendors recognize
its importance in maximizing product visibility. This strategy
combines various distribution channels, including retail stores,
mobile stores, online stores, mobile app stores, and telephone
sales, to boost customer engagement. While adoption is growing, it
remains lower than in developed countries. Online shopping is
thriving in China, with major and
small brands expanding their presence. The internet's increasing
accessibility and affordability, along with the rise of online
banking, make the online channel an even bigger opportunity for
retailers. E-commerce is projected to grow at 25% year-over-year.
Companies like JD.com, Alibaba, and Walmart are leading the way,
selling a wide range of products online. Domestic and international
players, such as GOME Electronics, are adopting omni-channel
distribution to generate revenue from both physical stores and web
portals. This strategy expands vendors' reach, with first and
second-tier cities driving high online sales due to greater
awareness and access to e-retailing. In smaller towns and cities,
physical stores remain preferred, but online platforms still
contribute to revenue growth. Overall, omni-channel retailing is
poised for significant growth in China's retail market.
The Retail Market in China is
experiencing significant trends driven by Internet Giants,
increasing disposable incomes, and consumer spending. Online
shopping through mobile-first sites is booming, with smartphone
penetration at an all-time high. IoT and augmented reality are
transforming the retail landscape. E-commerce channels dominate,
with fresh groceries sales a notable sector. Brick-and-mortar
stores remain relevant for personal use and household activities,
but online platforms offer convenience and accessibility. Retail
e-commerce market includes goods and services for final consumers
in sectors like clothing, footwear, jewelry, electronics, home
appliances, beauty products, toys, stationery, pet supplies, and
more. Customer support, personalized services, return policies, and
exchange policies are essential for retailers. Economic growth
fuels demand, while social interaction and employment opportunities
arise from online retail platforms. Global retailers expand product
ranges to reach Chinese consumers.
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Market Challenges
• The Chinese
retail market is faced with a significant challenge in the form of
counterfeit products, particularly in the luxury sector.
Approximately 40% of products sold in China are estimated to be counterfeit, with
many being sold online due to its wider reach and difficulty to
regulate. These imitations, often priced lower than authentic
items, pose a threat to both market shares and brand reputations of
leading global brands. Counterfeit cosmetics and personal care
products, in particular, can lead to harmful side effects due to
their use of cheap ingredients. To combat this issue, the Chinese
government is considering legislation to protect consumers and hold
online vendors accountable. Domestic online retailers, such as
Alibaba, are taking steps to mitigate the presence of counterfeit
products in their stores. Alibaba, for instance, is focusing on
product monitoring and implementing effective refund policies.
Additionally, the retailer employs over 5,000 volunteer shoppers,
or "phantom shoppers," to identify and report suspicious products.
Despite these efforts, the prevalence of counterfeit goods will
continue to hinder the growth of the retail market in China during the forecast period. Consumers
are increasingly conducting extensive online research before making
purchases due to concerns over authenticity, leading to lengthy
product descriptions on retail websites. Addressing this issue will
require a collaborative effort from all stakeholders, including
governments, retailers, and consumers.
• The Chinese
retail market presents significant opportunities for toys,
stationery, pet supplies, convenience, and accessibility sectors.
Challenges include implementing personalized services, return and
exchange policies, and adapting to economic growth and social
trends. Global retailers and online platforms are key players,
offering diverse product ranges and convenient online purchases.
Smartphones and tablets facilitate digital device usage for
shopping. Specialty stores, shopping malls, and convenience stores
cater to various consumer needs. Virtual reality, immersive
shopping experiences, and artificial intelligence are transforming
retail, with consumer data driving personalized recommendations and
customer service interactions. Promotional activities and branding
efforts engage customers, while product manufacturers and social
media platforms collaborate to boost sales. Employment
opportunities in retail continue to grow, with jobs in e-commerce
and customer service sectors on the rise.
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Segment Overview
This retail market in China
report extensively covers market segmentation by
- Product
- 1.1 Food and beverages
- 1.2 Apparel and footwear
- 1.3 Home improvement
- 1.4 Consumer electronics and appliances
- 1.5 Beauty and personal care
- Distribution Channel
- Geography
1.1 Food and beverages- The retail market in
China continues to grow, with
sales reaching over USD5 trillion in
2020. E-commerce is a significant sector, accounting for over 20%
of total retail sales. Consumers prefer online shopping due to
convenience and competitive prices. Traditional brick-and-mortar
stores also remain popular, particularly in tier 1 and 2 cities.
Cross-border e-commerce is expanding, attracting foreign brands to
enter the Chinese market. Government policies support the retail
industry's growth, including tax reductions and subsidies for small
businesses.
For more information on market segmentation with
geographical analysis including forecast (2024-2028) and historic
data (2018 - 2022) - Download a Sample Report
Research Analysis
The Retail Market in China is
experiencing rapid growth, driven by disposable incomes and
consumer spending. Online shopping through Internet Giants'
e-commerce channels has become increasingly popular due to
smartphone penetration and mobile-first sites. IoT and augmented
reality technologies are transforming the retail landscape,
offering personalized services and convenience. Brick-and-mortar
stores continue to thrive, providing social interaction and
accessibility. The retail e-commerce market is booming, with fresh
groceries sales leading the way. Toys, stationery, pet supplies,
and convenience goods are popular categories. Personalized
services, return policies, and exchange policies are essential for
final consumers. Economic growth and the rise of the middle class
are fueling demand for goods and services across various
sectors.
Market Research Overview
The Retail Market in China is
experiencing rapid growth, driven by disposable incomes and
consumer spending. Online shopping is a major trend, with
smartphone penetration reaching an all-time high. The retail
e-commerce market is booming, with IoT and augmented reality
technologies enhancing the shopping experience. Brick-and-mortar
stores continue to coexist with online platforms, offering
personalized services, return policies, and exchange policies.
Goods and services for personal use and household needs are
popular, including clothing, footwear, jewelry, electronics, home
appliances, beauty products, toys, stationery, and pet supplies.
Convenience, accessibility, and economic growth are key factors
driving consumer behavior. Online retail platforms, both domestic
and global, offer a wide range of products and services for final
consumers. Virtual reality and immersive shopping experiences are
the future, with virtual try-on, artificial intelligence, consumer
data, and personalized recommendations shaping the industry. Online
purchases via mobile-first sites and orders placed on smartphones
and tablets are becoming the norm. E-commerce applications,
specialty stores, shopping malls, convenience stores, and even
virtual reality are transforming the retail landscape. Promotional
activities, branding activities, and customer service interactions
are essential for retailers to stay competitive. Product
manufacturers, social media, discount offers, and television
commercials are important tools for reaching consumers. Jobs and
employment opportunities in the retail sector continue to grow,
fueled by the dynamic and evolving retail market.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Product
-
- Food And Beverages
- Apparel And Footwear
- Home Improvement
- Consumer Electronics And Appliances
- Beauty And Personal Care
- Distribution Channel
-
- Geography
-
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
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Contacts
Technavio Research
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Email: media@technavio.com
Website: www.technavio.com/
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