Abstract

In 1H 2005, hundreds of domestic large-scale retailing enterprises grew fast and steadily. The total sales of commodities and the retailing amount respectively achieved RMB87.98 billion and RMB73.6 billion, up by 17.5% and 18.3% compared to the same period last year. According to the statistical study on 28 categories of goods, the retail sales of twenty-four categories grew compared to the same period of 2004. What's more, the growth margins of twenty-one categories were above 10%.

Before huge foreign capitals flow into China, many large domestic enterprises are taking chain operation as development strategy to accelerate their expansion domestically, especially in large and medium-sized cities. Coordinated and supported by the Government, some competitive enterprises merged into super-giant enterprise groups through purchasing property rights. Thus, the market concentration ratio of the retailing industry keeps growing.

The report summarizes the environment for the development of China's retail industry and gives an analysis of domestic retailing after the opening to the outside world. Besides, retailing places consisting of supermarkets, convenience stores, shopping centers and department stores are carefully studied as well. The report deeply analyzes the retailing development in some regions of China and retail enterprises home and abroad. We also present an elaborate analysis on the combination of the retail industry with other industries, as well as retail investment & trends.

Table of Content

2 Environments for the development of China's retail industry
2.1 Analysis of external macro-environments
2.1.1 GDP indexes in 1978-2003
2.1.2 Analysis of China's GDP in 2004
2.1.3 Price index analysis of China's goods retailing, 2004-June, 2005
2.1.4 Analysis of Chinese consumer price index, 2004--July, 2005
2.1.5 Per capita annual net income of urban and rural households and Engel indices
2.2 Analysis of the consumption market
2.2.1 Analysis of China's consumer goods market in 2004
2.2.2 Analysis of consumer goods market in rural areas in 2004
2.2.3 Causes for China's fast-growing consumer goods market
2.2.4 Factors restraining domestic consumer demand
2.3　Policy environment of the retail industry
2.3.1 Dilemma faced by national policies on the retail industry
2.3.2 Desirable laws & regulations on dealing with gradual monopoly of foreign capital
2.3.3 Guiding Opinions on Accelerating Commercial Development of Communities
2.4　Associated industries and the impacts
2.4.1 Debate on charge rate between retailers and banks
2.4.2 Retailing and commercial real estate
2.4.3 Retailing and logistics informationlization
2.4.4 Retailing and reverse logistics

3 Analysis of China's retail industry
3.1 The operation of China's retail industry
3.1.1 Current operation of China's retail industry
3.1.2 Economic operation of China's retail industry in 2004
3.1.3 Analysis on salaries of on-post staff and workers in China's retail industry in 2005
3.1.4 Value analysis of China's retail industry
3.1.5 Development analysis of main formats of China's retail industry
3.2 Retail brands
3.3 Retail marketing
3.3.1 Sales markets of China's retail industry in July 2005
3.3.2 Sales analysis of hundreds of key retail enterprises, Jan-Jun, 2005
3.3.3 Retail enterprises experiencing the enforcement of marketing strategies
3.3.4 Retail marketing promoted by cultural activities
3.3.5 Marketing trend and features of China's retail industry
3.4 Foreign capital in China's retail industry
3.4.1 Analysis on advantages and disadvantages of foreign capital entering into China's retail industry
3.4.2 Analysis of foreign capital's influences on China's retail industry
3.4.3 Foreign-funded retail giants pay close attention to 2nd and 3rd-level markets
3.4.4 Problems brought by foreign-funded retail enterprises and corresponding solutions
3.4.5 Four trends of foreign capital entering China's retail industry
3.4.6 Trend and characteristics of foreign capital entering China's retail industry
3.5 Retailing and WTO
3.5.1 Influences of WTO Accession on China's retail industry and corresponding solutions
3.5.2 Competitive analysis of China's retail industry after WTO Accession
3.5.3 Challenges of WTO for domestic retailing enterprises
3.5.4 China's retail industry facing post-WTO era
3.5.5 Chaotic patterns of China's retail industry in post-WTO era

4. Retail format: analysis of supermarket industry
4.1 Analysis of supermarket development in China
4.1.1 Current status of China's supermarket retailing
4.1.2 The supply chain and financing chain of supermarkets in China
4.1.3 Large-scale development of China's supermarket industry
4.1.4 Informationization of China's supermarket retail industry
4.1.5 Development strategies of China's supermarket retailing
4.2 Operation and management of supermarkets
4.2.1 Online operation of conventional supermarkets
4.2.2 Analysis on the operation of supermarkets in communities
4.2.3 Analysis of five inequalities in operational management of chain supermarkets
4.2.4 Analysis of errors on human resources management of supermarkets
4.3　Analysis of the operation of large-scale supermarkets
4.3.1 Analysis on notional features of large-sized comprehensive supermarkets
4.3.2 The development and current status of Chinese large-scale supermarkets
4.3.3 New marketing strategies of large-sized comprehensive supermarkets
4.3.4 Reflection on marketing promotion of large and medium-sized supermarkets in communities
4.3.5 Feasibility to establish large-sized comprehensive supermarkets in China
4.4 Development trend of supermarkets

5 Retail format: analysis of convenience stores
5.1 Analysis of convenience stores in some countries and regions
5.2 Current status of convenience stores in China
5.2.1 Major convenience store brands in China in 2004
5.2.2 Development status of Chinese convenience stores
5.2.3 Problems in the development of convenience stores
5.2.4 Three strategies for the development of Chinese convenience stores
5.3 Convenience store market
5.3.1 Analysis on market positioning of convenience stores
5.3.2 Domestic and overseas capital in Chinese market of convenience stores
5.3.3 Market risks and opportunities co-existing in convenience store market
5.3.4 Investment planning suggestions for convenience stores
5.4 Prospects and trends of convenience stores
5.4.1 Bright prospect of convenience store market
5.4.2 Vast space to develop convenience stores in China
5.4.3 Necessity and advantages to develop convenience stores in China
5.4.4 Analysis on the development trend of convenience stores

6 Retail format: analysis of shopping centers
6.1 Analysis of Chinese shopping centers
6.1.1 Market positioning of Chinese shopping centers
6.1.2 Development strategies of Chinese shopping centers
6.1.3 Four characteristics of the development of Shanghai shopping center
6.2 Problems and risks in the development of shopping centers

7 Retail format: analysis of department store industry
7.1 Current status of department stores in China
7.1.1 Brief analysis of the development of Chinese department stores
7.1.2 Brand competition in department store industry
7.1.3 Competitiveness analysis of China's department store industry
7.1.4 Solutions for department store industry to challenge the market competition
7.1.5 Revitalizing road of Chinese department stores
7.2 Marketing of department store industry
7.3 Analysis of large department stores
7.3.1 Analysis of market positioning modes of large department stores
7.3.2 Conditions for internal market access of large department stores
7.3.3 Causes for large department stores’ being in difficulties
7.3.4 Competitive development strategies of huge department stores

8 Analysis of other retail formats
8.1 The Hyper market
8.1.1 Overview of the hyper-market retail format
8.1.2 Combination and management of suppliers in hyper markets
8.1.3 Methods to improve cost efficiency of hyper markets
8.1.4 Internal and external strategies for anti-depletion management of hyper markets
8.1.5 Other retail formats' competitiveness on the hyper market
8.2 Warehouse stores
8.2.1 Emergence and development of warehouse stores
8.2.2 Four marketing characteristics of warehouse store
8.2.3 Problems in operational management of Chinese warehouse stores
8.2.4 Problems and restrictive factors in the development of warehouse stores
8.2.5 Strategies and suggestions for the development of Chinese warehouse stores
8.3 Specialty stores
8.3.1 Evolvement of specialty stores
8.3.2 Development and operational features of specialty stores
8.3.3 Characteristics of specialty store development
8.3.4 Current status of Chinese specialty stores
8.3.5 Analysis on the development of foreign-funded specialty stores in China
8.4 Exclusive shops
8.4.1 General description of exclusive shops
8.4.2 Reflection on the marketing of exclusive shops
8.4.3 Suggestions on further construction of exclusive shops

9 Retailing in some key areas in China
9.1 Retailing in Beijing
9.1.1 Indicators of large-scale retailing development in Beijing, 2000-2003
9.1.2 Analysis of key performance indicators of large retail enterprises in Beijing, 2001-2003
9.1.3 Opportunities and challenges of large retail enterprises in Beijing
9.1.4 Current status of consumers' satisfaction with supermarkets in Beijing in 2005
9.2　Retailing in Shanghai
9.2.1 Analysis of top 20 department stores (mono-entity) in Shanghai by retail sales in 2004
9.2.2 Sales analysis of some special shops in Shanghai by district, Jan-Jul, 2005
9.2.3 Analysis of retail formats in Shanghai
9.2.4 Development features of retail formats in Shanghai
9.3 Retailing in Chongqing
9.4 Retailing in Guangdong
9.5 Retailing in the Yangtze River Delta

10 Influences of complete opening-up on China's retail industry
10.1 Analysis of domestic-funded and foreign-funded enterprises after complete opening
10.1.1 Analysis of domestic-funded and foreign-funded retail enterprises in 2005
10.1.2 Strongpoints of foreign-funded giants into Chinese market
10.1.3 Urgent promotion of domestic-funded enterprises' competitiveness
10.1.4 Merger of income taxes of domestic and overseas capital of retail industry
10.2 Influences of the opening-up of the retail industry
10.2.1 On-going opening of China's retail industry
10.2.2 Reflection on consecutive bankruptcy of small supermarkets
10.2.3 Wallop of Chinese retail market after being opened
10.2.4 Excessive opening of China's retail industry challenges Chinese Government

11 Retailing and chain operation
11.1 Definition and characteristics of chain operation
11.2 Chain operation of the retailing industry
11.2.1 Development of China's chain-operation retailing in 2004
11.2.2 Connotation and value judgment of chain retail development
11.2.3 Analysis of typical enterprises adopting chain retail mode
11.2.4 Influences of modern chain stores on China retail modes
11.3 Prospects of chain-store retail industry

12 Informationalization and e-commerce of China's retail industry
12.1 Analysis of retail informationalization
12.1.1 Informationalization degree of China's retail industry
12.1.2 Commercial modes for the informationalization of retail enterprises
12.1.3 Promotion of internal and external functions of large retail enterprises' information systems
12.1.4 Demand of retail informationalizaton for high-end products
12.2 Retailing and e-commerce
12.2.1 Analysis on e-commercialization of the retail industry
12.2.2 The development of online retail modes
12.2.3 E-commerce and supply chain management of the retail industry
12.2.4 E-commerce modes and strategies of China's retail industry
12.2.5 E-commercial problems of China’s retail industry

13 Analysis on logistics system of the retail industry
13.1 Current status of domestic and overseas logistics industries
13.1.1 Current status and features of China's logistics industry
13.1.2 Analysis of five major functions of corporate logistics operation
13.1.3 Existing problems in China's logistics industry
13.2　Logistics and retail enterprises
13.2.1 Expansion of modern logistics strategies of retailing enterprises
13.2.2 Logistics services and appraisal of trans-regional development of retail enterprises
13.2.3 Three logistics notions of medium-sized retail enterprises
13.2.4 Modern logistics being the important means for retailing enterprises' competitiveness
13.2.5 Logistics weakness of Chinese retail enterprises
13.3 Logistics of chain retail industry
13.3.1 Overview of logistics distribution of China's chain retail industry
13.3.2 Trend of third-party logistics to combine with chain retail industry
13.3.3 Reasons and solutions for out-of-stock of the retail industry
13.3.4 Logistics trend of China's chain retail industry

14 Analysis of typical enterprises
14.1 Hualian Superstore
14.1.1 Major accounting data and financial indicators of Hualian Superstore in Jan-Jun, 2005
14.1.2 Reverse trend of Hualian Superstore's performance
14.1.3 Cultivation of healthy development of Hualian Superstore
14.1.4 Chain network of Hulian Superstore around China
14.1.5 Future development strategies of Hualian Superstore
14.2 Dashang Group Co., Ltd.
14.2.1 Introduction to Dashang Group
14.2.2 Reverse trend of clear-cut performance of Dashang Group
14.2.3 Emerging trans-regional benefits of Dashang Group
14.2.4 Dashang Group's virtuous cycle of opening stores—training—payoff 
14.2.5 Prospective analysis of the development of Dashang Group
14.3 Comparison between enterprises
14.3.1 Competitive comparison between Hualian Supermarket and Wal-Mart
14.3.2 Contrastive analysis of Wal-Mart's victory and Kmart's bankruptcy
14.3.3 Analysis on aggressive strategies of Wal-Mart and Carrefour in China
14.3.4 Relationship of Metro and Carrefour with the suppliers
14.3.5 Market position change of Metro, Carrefour and Wal-Mart

15 Competitive patterns of China's retail industry
15.1 Structural analysis of retailing competition
15.2 Current competition in China's retail industry
15.2.1 Competition between domestic-funded and foreign-funded enterprises in China
15.2.2 Low-price operation competition in China's retail industry
15.3 Competition strategies of China's retail industry

16 Analysis of retailing investment and trend
16.1 Investment opportunities
16.1.1 Boundless commercial opportunities to develop convenience stores in China
16.1.2 Shopping centers becoming new form of commercial states
16.1.3 Bright prospects for the development of discount shops in China
16.1.4 Bright prospects for special shops in the domestic market
16.2　Analysis of investment risks
16.2.1 Policy risks
16.2.2 Industrial risks brought by rushing-in foreign capital
16.2.3 Retailing risks brought by speculative modes
16.2.4 Invalid scale pitfalls in retailing expansion
16.3 Investment suggestions
16.4 Trend analysis of the retailing industry

Selected Figures