With a background of slowing economic growth and increasing competition from domestic and global players alike, multinationals are broadening their horizons in order to succeed in China. Retail sales growth has been decelerating since 2010 and is expected to continue to do so. Recent stock market falls have dented business and consumer confidence and companies in diverse fields including Ford, Anheuser-Busch InBev and Caterpillar are voicing their concerns about the challenges to growth in China. Winning in China is now harder than ever to achieve, but there are several strategies that should be employed in order to boost the likelihood of success.
Real Growth of GDP and Retailing: 2010-2019
Source: Euromonitor International from trade sources/national statistics/IMF
Note: Data from 2015 onwards are forecast