Retail in Asia

In Markets

RetailWATCH: Ten highlights of China’s commercial sector 2014, the Fung Business Intelligence Centre

Mainly larger supermarket operators in China have turned their focus to small-format stores amid weak sales and growing competition. At the same time, smaller-sized retailers, such as small supermarkets and convenience stores, are becoming more popular, according to a new report released by the Fung Business Intelligence Centre Ten highlights of China’s commercial sector 2014.

The research centre collected the views of over 160 top-tier economic analysts and unveils 10 highlights identified after a series of votes and formal, in-depth panel discussion.

The experts predict that the trend for China’s big retailers to shrink their existing store sizes and launch smaller stores will continue this year and more large-scale supermarkets will step into shopping malls as consumers increasingly prefer to visit and shop at malls. There are three major trends to watch according to the experts:

  • Development of commercial districts to reach new heights
  • Freshness becomes a key differentiator
  • Convenience stores extend value-added services

Ten highlights of the report include:

  1. Consumer market’s steady growth, more rational consumption
  2. Pace of online and offline integration accelerates, concept of the omni-channel emerges
  3. Dominance by large retailers nears an end, downsizing becomes a trend
  4. Providing a more favourable business environment for SMEs
  5. M&A in China’s commercial sector to gather pace
  6. Department stores explore a direct sales merchandise model
  7. Surging rental and labour costs: an operational challenge
  8. Government strives to promote integration, reduce costs of logistics
  9. Improved legal and regulatory environment; anti-corruption and anti-monopoly probes in focus
  10. New consumer protection law: aiming for an end to business malpractices

To download the full report, click on the PDF attachment.