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China

China's Retail Market Beckons Global Giants

Strategic Insights

— 1 min read

With China poised to join the World Trade Organization (WTO), foreign retailers are eagerly anticipating entry into the vast Chinese market, which has long been coveted. Retail giants like Wal-Mart, Metro, and Carrefour are at the forefront of the rush, with significant investments already being made in the country. These global retailers are not only seeking to tap into the enormous market potential but also to leverage China's growing capabilities to supply their international outlets.

Key Takeaways:

  • Wal-Mart has successfully opened seven shops and one member shop in China since its entry, with a total investment of 905 million yuan.
  • Carrefour has opened 23 chain stores in 15 Chinese cities, with plans to increase to 27 stores this year.
  • Metro of Germany has opened seven shops, with one outlet in Fuzhou taking only six months to complete.
  • Wal-Mart's direct procurement of Chinese merchandise has topped US$4.5 billion, with total purchasing volume exceeding US$10 billion through indirect purchases as well.
  • The average annual growth of purchasing volume for Wal-Mart in China is 25 percent.
  • The foreign-funded retail sector in China accounts for only 2.5 percent of the total 3 trillion yuan (US$361.4 billion) in retail sales of consumer goods in China, indicating significant potential for cooperation.
  • The involvement of foreign funds can bring new marketing methods, technology, and management to the Chinese retail market, as well as enable Chinese products to enter the global procurement system.

Statistics:

  • Total retail sales of consumer goods in China: 3 trillion yuan (US$361.4 billion)
  • Proportion of foreign-funded retail sector in China: 2.5%
  • Total investment by Wal-Mart in China: 905 million yuan
  • Number of Carrefour chain stores in China: 23, with plans to reach 27 this year
  • Time taken by Metro to set up an outlet in Fuzhou: six months
  • Total purchasing volume by Wal-Mart in China: over US$10 billion
  • Average annual growth rate of purchasing volume by Wal-Mart in China: 25 percent
  • Total direct procurement of Chinese merchandise by Wal-Mart: US$4.5 billion

Sources:

  • "Beijing, June 14 Asia Pulse - With China's entry into the World Trade Organization (WTO) pending... ".
  • China Association of Commerce, and *Jiang Ming, vice-chairman, citing "of the total 3 trillion yuan (US$361.4 billion) in retail sales of consumer goods in China... "*

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