Released in partnership with London-based global property consultancy, Knight Frank LLP, KPMG’s new report highlights an important new trend in China retail property – namely, rising opportunities in mid-market retail space in tier-II and tier-III cities.
While retail sales have stagnated in other markets, China’s retail sales have continued to grow at double-digit rates. The Chinese are even pushing growth in surrounding tourism destinations like Japan. Mid-market retail space in tier-II and III cities may be suitable for quality branded retailers seeking to penetrate the growing and urbanising Chinese middle class, but brands need to adopt new or innovative approaches to manage their risk and control their own destiny. Despite this rosy discovery, the challenges to capture this opportunity should not be understated; these are explained in the report.
Facts and figures include: the average prime retail rates for nine tier-II Chinese cities; a breakdown of China’s urban household expenditure, comparing a 1985 census to 2009; and new private consumption breakdowns of China’s GDP.
To download the full report, click on the PDF attachment.