China has stepped up to become the largest retail economy in Asia, with sales of approximately US$1.7bn expected from this year, a report from Cushman & Wakefield details.
Its success has made it a leading target for many retailers entering Asia, which has in turn led it to become one of the most diverse and multinational in the region.
“Retail growth in China has remained vigorous while signs of moderation have surfaced as the economy undergoes a restructuring process,” Annie Lei, national director of China consulting at Cushman & Wakefield, told Inside Retail Asia.
Consumers in first-tier cities Beijing, Shanghai, Shenzhen and Guangzhou are the wealthiest and most brand-conscious, according to Lei. These cities show retail sales growth of between nine and 16 per cent.
China’s top retail centres, including Shin Kong Place in Beijing, Grandview Plaza in Guangzhou and MixC in Shenzhen, achieved sales estimated at US$1bn per annum and rising.
In leading second-tier cities including Chengdu, Wuhan, Nanjing, Shenyang and Chongqing, this growth is at a higher sustained level between 13 and 17 per cent.
“Overall, we expect a steady rise in income levels to nurture an aspiring middle class population and, barring any economic surprises, this should underpin balanced retail growth for the next decade,” said Lei.
Despite the promising growth prospects, many of China’s major cities are at risk of oversupply, which stands to affect the market’s weaker projects.
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