, China

China still attracts foreign retailers

Even as the Chinese economy slows and conditions become more difficult for foreign retailers, China is still the world’s second top destination for emerging market retail expansion.

The huge and growing Chinese market is impossible to ignore, said global management consulting firm AT Kearney which highlighted continued expansion of global retailers in its report on the global retail environment.

Retail sales in the world’s most populous country increased 13% in 2013 to US$3.7 trillion, and consumer confidence rose. “Urbanisation, increasing disposable incomes and the family planning relaxation will fuel future retail growth in China,” said AT Kearney.

China is behind Chile which, according to the 2014 AT Kearney Global Retail Development Index, is the world’s most attractive market for retailers.

AT Kearney reported that the major movers in China are online retailers. China’s e-commerce market is growing significantly and now accounts for 8% of all retail. In 2013, it grew 42% year-on-year to US$305 billion.

The Index also revealed that Asia has a number of fast-growing economies that offer fertile ground for retailers as growing populations, rising incomes, and increasing affinity for modern formats helps retail sales increase rapidly. Modern retail is spreading beyond the largest urban centres to smaller, untapped cities and regions.

The report said Asia saw several improvements in the rankings, including Malaysia (No.9), which re-entered the top 10 for the  first time since 2009, and Indonesia (No.15) which moved up four places from the previous year's ranking.

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