Textile Outlook International: Clothing Retailing in China

PRLog (Press Release) – Feb 14, 2007 – With a population of 1.3 bn, China’s consumer market offers huge potential. Spending power in the country is growing rapidly as the economic boom continues. China’s “wealthy”—those earning more than Rmb100,000 a year (US$12,080)—amounted to an estimated 2.8 mn households by 2000, representing a major market for upmarket brands. Mass market brands, meanwhile, are being targeted at China’s quality- and price-conscious middle and lower-middle income earners (Rmb10,000-30,000 per annum), who numbered a further 150.5 mn households in 2000.

Although the retail market is still highly fragmented, large retail chains are developing through amalgamation. The leading retailer in China is now Bailian Group, which was formed by merging four Shanghai-based companies. Second in importance is the French-owned Carrefour supermarket chain.

Shopping malls are being developed at a rapid rate. In fact many city centres are now approaching saturation with too many retailers chasing too few customers. High rents are another problem. In the fourth quarter of 2002 the net rental for prime ground-floor retail space in Shanghai is reported to have averaged almost US$1,040 per m2 per annum. But as car ownership rises, the retail industry will have more flexibility in its choice of location. The development of retail centres outside the city centre is already gathering pace and offers scope for development.

Distribution remains a problem due to vast distances, poor infrastructure and state-control of the wholesale sector. But companies are starting to run their own distribution operations. Also, franchising represents an efficient solution in a country the size of China where distribution networks are costly. Other problems include contractbreaking, corruption, counterfeiting and government restrictions which prevent foreign retailers from operating wholly owned subsidiaries. But these problems are expected to diminish now that China has become a member of the World Trade Organisation (WTO).

Six times a year, Textile Outlook International provides up to 200 pages of expert comment and analysis, including: regular updates on world textile and apparel trade and production trends; profiles of textile and apparel companies and countries around the world; business opportunities in the global market place; political implications and information on trade blocs, tariffs and quotas; and innovations and technological developments in the industry.

For more information, Please visit : http://www.bharatbook.com/detail.asp?id=8206
or email us at : info@bharatbook.com
You can also call us at +912227578668 or +912227579131
For searching our huge collection of reports, Please visit :
http://www.bharatbook.com/general/customresearch.asp