The Retailing Market in China


Lamine Lahouasnia, Retailing Analyst at Euromonitor International, discusses the retailing market in China and how the market is set to expand rapidly in the near future. China is currently ranked third in retailing market size behind the USA and Japan, but Japan is suffering from an aging population, causing the retailing market to shrink.

China has benefited from high GDP growth and high average income, allowing consumers to spend more in the retailing market.  Overall in Chinese retailing, consumer electronics and appliances are the two driving markets behind recent growth. Three specific factors that are allowing the Chinese to spend more on electronics and appliances are:

  • A rise in average disposable income
  • A changing attitude towards savings
  • The increase in the housing market

There are challenges facing the Chinese retailing market as well. Inflation in food prices may take a toll on Chinese spending. Food is a priority for consumers, so non-grocery retailing may suffer as a result. A slowdown in the housing market will impact consumer electronics and appliance retailing as well. Forecasts for the retailing market in China, however, remain positive.

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