Market Research Reports - Industry Analysis Size & Trends - Technavio (2024)

The retail marketin China is estimated to grow at a CAGR of 8.64% between 2022 and 2027. Theretail market size in Chinais forecast to increase by USD1,207.55 billion. The growth of the market depends on several factors, including the premiumization of products, the growing popularity of private-label brands, and value-added service.

Thisretail market report in Chinaextensively covers market segmentation by product (food and beverages, apparel and footwear, home improvement, consumer electronics and appliances, and beauty and personal care), and distribution channel (offline and online). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Retail Market in China During the Forecast Period?

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Retail Market in China: Key Drivers, Trends, Challenges, and Customer Landscape

The growing popularity of private-label brands is notably driving market growth, although factors such as high competition from unorganized retailersmay impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Retail Market Driverin China

The growing popularity of private-label brands is notably driving market growth.Retailers all over China are increasingly focusing on private-label products. To increase their profitability, retailers are offering a variety of consumer goods under their private-label brands. As a result, the retail market in China is expanding. Major retailers are capitalizing on the rising customer demand by introducing a portfolio of packaged foods, drinks, and personal care items.

Prices for private-label goods are lower than those for branded goods. Customers who care about price are therefore more likely to buy private-label goods. Retailers, like supermarket chains, have started giving private-label products more shelf space and are conducting internal marketing and promotional campaigns. As a result, it is anticipated that private-label brand demand will rise, which will in turn support the expansion of China retail market in terms of volume sales during the forecast period.

SignificantRetail Market Trendsin China

Innovation in in-store retailing is an emerging trend in the market growth.The personalization of services for customers in in-store retailing has been strengthened by digitalization. In order to compete with online subscription models provided by e-commerce companies like Amazon, which allow customers to stock up on repeat purchases, the majority of supermarket and hypermarket chains in China must go online. In-store retail, which encourages customers to browse in person to supplement their daily needs with a few high-end purchases, can nevertheless use the same concept.

Retailers are using innovative methods to interact with their in-store customers. Customers can easily find the items they want to buy in-store with the aid of in-store innovation concepts that make use of mobile applications. Additionally, built-in touch screens in changing rooms enable customers to virtually try on wearables like clothing and footwear, and self-checkout terminals reduce the need for lengthy lines. These factors will all contribute to the China retail marketexpansion during the forecast period.

Major Retail Market Challengein China

The high competition from unorganized retailers is a major challenge impeding market growth.For well-established retailers in the China retail market, fierce competition from unorganized retailers presents a significant challenge. Unorganized, high-volume retailers that are not registered with the government compete fiercely with well-established retailers in China's market, especially in the food and beverage and apparel sectors. These unorganized retailers have erratic hiring policies and product selections. These vendors provide goods that are comparable to those provided by the nation's organized vendors.The two factors that distinguish organized from unorganized retailers are price and branding.

Small businesses that specialize in a single product category (typically private-label brands) and individual Chinese product suppliers are among the participants active in the market. Prices and product quality affect how organized and unorganized retailers compete. Price, quality, brand recognition, and customer service are the main areas of competition for market vendors. Moreover, the majority of unorganized retailers use low prices to attract customers, but they often skimp on quality because they have low overhead and investment needs. Therefore, these factors will hamper the growth of the China retail market during the forecast period.

Key Retail Market Customer Landscapein China

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Retail Market in China Customer Landscape

Who are the Major Retail Market Vendors in China?

Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Beijing Dangdang Kewen Electronic Commerce Co. Ltd. - The companyoffers various products such as books, beauty and personal care, home, lifestyle, baby, children, and maternity products. The key offerings of the company includedepartment stores, shopping malls, outlets, large stores, supermarkets, convenience stores, and specialty retail formats.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Alibaba Group Holding Ltd.
• CK Hutchison Holdings Ltd.
• GOME Retail Holdings Ltd.
• JD.com Inc.
• Lotte Corp.
• PetroChina Co. Ltd.
• Sun Art Retail Group Ltd.
• Vipshop Holdings Ltd.
• Walmart Inc.
• Yonghui Superstores Co. Ltd.
• Quanlian Industrial Co. Ltd.
• President Chain Store Corp.
• Pinduoduo Inc.
• E Mart Co. Ltd.
• DFI Retail Group

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segmentin the Retail Market in China?

The market share growth by the food and beverages segment will be significant during the forecast period.The Chinese economy's largest sector in terms of financial gain and employment opportunities isthe food and beverage industry. The size of the industry participants varies, and multinational corporations produce a lot of fast-moving consumer goods (FMCG). Dairy, beef, wine,grains, fruits, and vegetables are a few of the products in this category that are experiencing high growth. The market is also expanding because there are numerous supermarkets that sell reasonably priced organic food items.

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The food and beverages segmentwas valued atUSD 721.51 billionin 2017 and continued to grow until 2021.All social classes have an equal need for food, but they choose different retail formats from which theybuy these goods. Convenience stores are preferred over hypermarkets in third and fourth-tier cities and by lower-middle-class consumers, whereas hypermarkets are more concentrated in first-tier cities, where most purchases are made by upper and middle-class consumers. Furthermore, in China, packaged non-genetically modified food is becoming popular. Scientists have noted numerous health and environmental risks associated with GMO food products, and as a result, consumers are gravitating more and more toward non-GMO food products. Demand for non-GMO food products has increased as a result of Chinese consumers' growing health consciousness and concern over their diets. Hence, all these factors will fuel the market segment growth during the forecast period.

Segment Overview

The retail market report in Chinaforecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.

• Product Outlook (USD Billion, 2017 - 2027)
  • Food and beverages
  • Apparel and footwear
  • Home Improvement
  • Consumer electronics and appliances
  • Beauty and personal care

• Distribution Channel Outlook (USD Billion, 2017 - 2027)
  • Offline
  • Online

Parent Market Analysis

Technavio categorizes the retail market in China as a part of the global Internet and direct marketing retail market within the global retailing market. The parent global Internet and direct marketing retail market cover the revenue generated by companies providing retail services primarily on the Internet, through mail orders, door-to-door retailers, and TV home shopping retailers.Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.

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What are the Key Data Covered in this Retail Market ResearchReport in China?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the China retail market between 2023 and 2027
• Precise estimation of the size of the China retail market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across China
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of theChina retail market vendors

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