The retail industry in China is one of the largest in Asia-Pacific, and is witnessing a growth in hypermarkets, supermarkets and convenience stores.
According to the reports given by Kim Young-gyo, forecast has been made that China will become the world’s biggest retail market in 2016. The retail market in China will grow by 10% or more every year from 2012- 2016, due to which China will surpass U.S as the world’s retail market in four years from now. The economic growth in China is decreasing due to the euro zone debt crisis and other global uncertainties, but despite the country’s slower economic growth, the Chinese retail industry is expected to grow 10.9 percent in 2012.
The report say that, the gross domestic product i.e. GDP has grown by 7.4 percent this year in July-September period, slower than 9.1-percent increase during the same period a year earlier and the world’s No. 2 economy has grown by 7.6 percent on-year in the second quarter and 8.1 percent in the first quarter. Inspite of this the global retailers will continue to bank on China.
The country’s leadership aims to twofold the China’s GDP and per capita income of both urban and rural households by 2020, according to the reports from the Chinese Communist Party’s National Congress which was held last month.
According to Carrie Yu, PwC’s retail and consumer leader for China and the Asia Pacific, the retailers in China are not only focussing on the large first and second-tier cities, but also are now expanding in third and fourth-tier cities as disposal incomes in these untapped markets increase. The report also says that, South Korea’s retail industry will fairly grow through 2016. It is been forecasted that, the South Korean retail market will grow 2.1 percent in 2013, 2.2 percent in 2014, 2.8 percent in 2015 and 2.9 percent in 2016 as compared to an estimated 1 percent growth in 2012.
Forecast has been made that the Chinese consumers will continue to drive global luxury market growth in 2013, and China’s online retailing will enjoy exponential growth, of 23.4 percent share of global business-to-consumer e-commerce sales in 2016, up from 9.9 percent in 2012, according to the report.