Anticipating an inflow of foreign capital, many supermarket enterprises have accelerated expansion.
San Francisco, CA (PRWEB) December 15, 2012
Over the five years through 2012, the Supermarket industry in China has been growing at an annualized rate of 15.4% to reach $131.0 billion. The main drivers of growth have been the government's program to establish a national rural retail network and strong rises in consumer purchasing power. In February 2005, the central government began an ambitious program to build a national rural retail network covering 70.0% of all villages within five years. Distribution infrastructure improvements, as well as support from local governments allowed supermarket operators to expand into these rural areas.
The Supermarket industry in China is very fragmented. The top four players – China Resources Enterprise, Walmart, Carrefour, and RT-MART China – account for 35.9% of total industry revenue in 2012, a much lower share than in developed countries like Australia and the United States. The industry is very young and relatively undeveloped in China; the first modern supermarket opened in 1990. The majority of enterprises are small-scale with low management and investment levels.
So far, a stable market has not been formed for the Supermarket industry in China. New stores and formats are constantly emerging, and consumers have many choices. As the government considers the retail sector a strategic industry in China's economy, and in anticipation of a large foreign capital flow into China, many domestic operators have started to accelerate expansion, says IBISWorld. Supported by the government, some competitive medium-sized enterprises have merged into larger groups by purchasing property rights.
For more information, visit IBISWorld’s Supermarkets in China industry report page.
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IBISWorld Industry Report Key Topics
This Supermarket industry in China is a part of China's retail trade sector. Supermarkets retail a broad range of food and daily goods. Most of the goods carried by supermarkets are purchased from domestic manufacturers. Operators, generally known as supermarkets or hypermarkets, then retail these goods to the general public.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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