Despite the fact that China has slipped by one position to number 5on the charts, its retail market showed a growth of more than 10% in 2005 and still remains a lucrative sector. However, as international players are fueling the growth, market is reaching saturation. Approx 50 retailers have already entered the market and more are interested in entering the ever-booming retail sector of China.

In the starting years of 21st century, Chinese retail market underwent deregulation. Since then, this sector has been providing considerable opportunities to food and electronics retailers of international market. With the facilitation of restrictions, foreign retailers joined hands with domestic biggies.

Food plays a major role in Chinese culture and in business and personal relationships. So it is easy to conclude that consumer foods have been one of the key driving forces behind the retail revolution in China. Consumers in China tend to save rather than spend. Hence, prices remain the drivers of the market growth. But in this area, imports have a tough competition with their local peers.

With the growth in Chinese retail market, some leading US electronics retailers want to procure majority stake in top electronics and appliance retail zone in China. US-based retailers have plans to invest money in specific retail sectors to acquire their major share.



As China is a part of World Trade Organization (WTO), it has eases most of the restrictions from foreign retailers. So, there are no more limitations on the number of stores, rules that confined them to big cities only and regulations checking the foreign investment at 65% in local ventures.

These obstacles were laid by China to give its domestic companies a chance to duplicate the model of west's big-stores; they have done it with great success. Now, the Chinese stores can achieve success on their own. This has also opened the doors for foreign retailers to invest in the market.

For further information, read the report on China Retail Market, "China Retail Sector Analysis (2006- 2007)" by RNCOS at:

http://www.rncos.com/Report/IM059.htm

RNCOS is an industry leader in the field of online business research. We specialize in industry research on various business verticals. To read our other reports, visit: http://www.rncos.com/Report.htm or email us at info@rncos.com.

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