The mobile phone retail market in China is large with high growth potential.
San Francisco, CA (PRWEB) August 28, 2013
Over the past decade, mobile phone manufacturing and retailing in China have developed strongly, largely due to rapidly accelerating technology, new product innovation, and increased consumer purchasing power. In the five years to 2013, revenue for the Communication Equipment Retailers industry in China has been growing at an annualized rate of 29.6% to an estimated $40.1 billion, says IBISWorld.
Wired communication (e.g. telephone handset) retailing has entered the mature stage of its life cycle, whereas mobile communication equipment (e.g. mobile phone) retailing continues to develop rapidly, says IBISWorld. Most recently, the mobile communication equipment product segment – which includes smart phones – has stolen market share from the wired communication equipment segment.
The Communication Equipment Retail industry is characterized by a large number of small-scale stores scattered in third and fourth-tier cities and many outlets retailing industry products in department stores and supermarkets. The top four retailers – China Unicom, China Telecom, Suning, and 360buy Jingdong Mall – account for 38.9% of total industry revenue, says IBISWorld.
IBISWorld anticipates that the industry concentration level will increase gradually as well-established enterprises set up more outlets and expand their distribution networks and the rising penetration of online shopping adds to the revenue shares of major online players. Large chain stores and online platforms are both more competitive than small and single-store retailers. As the overall Chinese economy continues to develop, mergers and acquisitions will also occur with larger retailers expanding by acquiring smaller ones.
Future growth trends include: falling mobile phone prices, gradual growth in demand from the central and western regions in China, strong demand for smart phones in the developed eastern and northern regions, further market liberalization policies, the expansion of 3G mobile networks, and the construction of a 4G network.
For more information, visit IBISWorld’s Communication Equipment Retailers in China industry report page.
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IBISWorld Industry Report Key Topics
Communication equipment retailers in China sell wired and mobile communications equipment, such as telephones, videophones and mobile phones, and related accessories. Transmission, program-control, radio, film and TV equipment are not sold by this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.