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