NEW YORK, July 9, 2024 /PRNewswire/ -- In China, the retail market is poised for substantial growth, expected to increase by USD 1192.7 billion from 2024-2028 at a CAGR of nearly 8.09%, driven by the premiumization of products and the shift towards online and omni-channel trade. However, the market faces challenges like rampant counterfeiting in the premium segment. Key players shaping this landscape include Alibaba Group Holding Ltd., JD.com Inc., Walmart Inc., Suning.com Co. Ltd., and Pinduoduo Inc., alongside other prominent names like Bailian Group, GOME Retail Holdings Ltd., and Vipshop Holdings Ltd.

Get a detailed analysis on regions, market segments, customer landscape, and companies - Click for the snapshot of this report

Key Market Trends Fueling Growth

In China's retail market, omni-channel retailing is gaining popularity as vendors recognize its importance in maximizing product visibility. This strategy combines various distribution channels, including retail stores, mobile stores, online stores, mobile app stores, and telephone sales, to boost customer engagement. While adoption is growing, it remains lower than in developed countries. Online shopping is thriving in China, with major and small brands expanding their presence. The internet's increasing accessibility and affordability, along with the rise of online banking, make the online channel an even bigger opportunity for retailers. E-commerce is projected to grow at 25% year-over-year. Companies like JD.com, Alibaba, and Walmart are leading the way, selling a wide range of products online. Domestic and international players, such as GOME Electronics, are adopting omni-channel distribution to generate revenue from both physical stores and web portals. This strategy expands vendors' reach, with first and second-tier cities driving high online sales due to greater awareness and access to e-retailing. In smaller towns and cities, physical stores remain preferred, but online platforms still contribute to revenue growth. Overall, omni-channel retailing is poised for significant growth in China's retail market. 

The Retail Market in China is experiencing significant trends driven by Internet Giants, increasing disposable incomes, and consumer spending. Online shopping through mobile-first sites is booming, with smartphone penetration at an all-time high. IoT and augmented reality are transforming the retail landscape. E-commerce channels dominate, with fresh groceries sales a notable sector. Brick-and-mortar stores remain relevant for personal use and household activities, but online platforms offer convenience and accessibility. Retail e-commerce market includes goods and services for final consumers in sectors like clothing, footwear, jewelry, electronics, home appliances, beauty products, toys, stationery, pet supplies, and more. Customer support, personalized services, return policies, and exchange policies are essential for retailers. Economic growth fuels demand, while social interaction and employment opportunities arise from online retail platforms. Global retailers expand product ranges to reach Chinese consumers. 

Discover 360° analysis of this market. For complete information, schedule your consultation- Book Here!

Market Challenges

•         The Chinese retail market is faced with a significant challenge in the form of counterfeit products, particularly in the luxury sector. Approximately 40% of products sold in China are estimated to be counterfeit, with many being sold online due to its wider reach and difficulty to regulate. These imitations, often priced lower than authentic items, pose a threat to both market shares and brand reputations of leading global brands. Counterfeit cosmetics and personal care products, in particular, can lead to harmful side effects due to their use of cheap ingredients. To combat this issue, the Chinese government is considering legislation to protect consumers and hold online vendors accountable. Domestic online retailers, such as Alibaba, are taking steps to mitigate the presence of counterfeit products in their stores. Alibaba, for instance, is focusing on product monitoring and implementing effective refund policies. Additionally, the retailer employs over 5,000 volunteer shoppers, or "phantom shoppers," to identify and report suspicious products. Despite these efforts, the prevalence of counterfeit goods will continue to hinder the growth of the retail market in China during the forecast period. Consumers are increasingly conducting extensive online research before making purchases due to concerns over authenticity, leading to lengthy product descriptions on retail websites. Addressing this issue will require a collaborative effort from all stakeholders, including governments, retailers, and consumers.

•         The Chinese retail market presents significant opportunities for toys, stationery, pet supplies, convenience, and accessibility sectors. Challenges include implementing personalized services, return and exchange policies, and adapting to economic growth and social trends. Global retailers and online platforms are key players, offering diverse product ranges and convenient online purchases. Smartphones and tablets facilitate digital device usage for shopping. Specialty stores, shopping malls, and convenience stores cater to various consumer needs. Virtual reality, immersive shopping experiences, and artificial intelligence are transforming retail, with consumer data driving personalized recommendations and customer service interactions. Promotional activities and branding efforts engage customers, while product manufacturers and social media platforms collaborate to boost sales. Employment opportunities in retail continue to grow, with jobs in e-commerce and customer service sectors on the rise.

For more insights on driver and challenges - Download a Sample Report

Segment Overview 

This retail market in China report extensively covers market segmentation by

1. Product 
   • 1.1 Food and beverages
   • 1.2 Apparel and footwear
   • 1.3 Home improvement
   • 1.4 Consumer electronics and appliances
   • 1.5 Beauty and personal care
2. Distribution Channel
   • 2.1 Offline
   • 2.2 Online
3. Geography 
   • 3.1 APAC

1.1 Food and beverages-  The retail market in China continues to grow, with sales reaching over USD5 trillion in 2020. E-commerce is a significant sector, accounting for over 20% of total retail sales. Consumers prefer online shopping due to convenience and competitive prices. Traditional brick-and-mortar stores also remain popular, particularly in tier 1 and 2 cities. Cross-border e-commerce is expanding, attracting foreign brands to enter the Chinese market. Government policies support the retail industry's growth, including tax reductions and subsidies for small businesses.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 - 2022)  - Download a Sample Report

Research Analysis

The Retail Market in China is experiencing rapid growth, driven by disposable incomes and consumer spending. Online shopping through Internet Giants' e-commerce channels has become increasingly popular due to smartphone penetration and mobile-first sites. IoT and augmented reality technologies are transforming the retail landscape, offering personalized services and convenience. Brick-and-mortar stores continue to thrive, providing social interaction and accessibility. The retail e-commerce market is booming, with fresh groceries sales leading the way. Toys, stationery, pet supplies, and convenience goods are popular categories. Personalized services, return policies, and exchange policies are essential for final consumers. Economic growth and the rise of the middle class are fueling demand for goods and services across various sectors.

The Retail Market in China is experiencing rapid growth, driven by disposable incomes and consumer spending. Online shopping is a major trend, with smartphone penetration reaching an all-time high. The retail e-commerce market is booming, with IoT and augmented reality technologies enhancing the shopping experience. Brick-and-mortar stores continue to coexist with online platforms, offering personalized services, return policies, and exchange policies. Goods and services for personal use and household needs are popular, including clothing, footwear, jewelry, electronics, home appliances, beauty products, toys, stationery, and pet supplies. Convenience, accessibility, and economic growth are key factors driving consumer behavior. Online retail platforms, both domestic and global, offer a wide range of products and services for final consumers. Virtual reality and immersive shopping experiences are the future, with virtual try-on, artificial intelligence, consumer data, and personalized recommendations shaping the industry. Online purchases via mobile-first sites and orders placed on smartphones and tablets are becoming the norm. E-commerce applications, specialty stores, shopping malls, convenience stores, and even virtual reality are transforming the retail landscape. Promotional activities, branding activities, and customer service interactions are essential for retailers to stay competitive. Product manufacturers, social media, discount offers, and television commercials are important tools for reaching consumers. Jobs and employment opportunities in the retail sector continue to grow, fueled by the dynamic and evolving retail market.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• • Food And Beverages
  • Apparel And Footwear
  • Home Improvement
  • Consumer Electronics And Appliances
  • Beauty And Personal Care
• Distribution Channel
• • Offline
  • Online
• Geography
• • APAC

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/retail-market-size-in-china-is-set-to-grow-by-usd-1-19-billion-from-2024-2028--premiumization-of-products-to-boost-the-market-growth-technavio-302190642.html

SOURCE Technavio