When there are so many other markets just trying to stay out of the red, China is still experiencing growth, as the latest figures from the World Bank show with a revised growth rate of 7.2% for 2009. Retail sales remained strong in the first quarter reaching CNY2.94 trillion, a year-on-year increase of 15%, according to the National Bureau of Statistics.
The National Bureau of Statistics also reports that Beijing’s retail sales in the first quarter of 2009 reached CNY122.12 billion, an increase of 12.6% compared with the same period of last year; with Shanghai achieving 13.7% growth. Analysts believe that this growth is a result of stimulation by a series of domestic demand expanding and consumption promoting measures by the Government.
CLSA predicts retail sales could be as high as 19% year over year of nominal retail sales.
As the world’s largest growing economy, there is still enormous potential for businesses to take advantage of. There are significant retail opportunities in upcoming Tier II and Tier III cities such as Wuxi, Shenyang and Chengdu among others, as highlighted in the article ‘Opportunities abound for international retailers’. We also look at the challenges of engaging consultants to facilitate your entry into China and how outsourcing can expedite your expansion plans.