Despite experiencing flat growth at present, China is poised to outpace the US and become the world‘s retail leader in terms of both volume and value by 2022. However, the country faces a number of challenges, most notably its ever-changing demographics and wide regional variation in terms of market size, saturation, consumer tastes, etc.
Traditional formats still account for some 78% of grocery retail, leaving the door open for deeper penetration of modern retail into this large untapped sector, as seen in the latest developments in the online channel.
In this new landscape, characterised by a lower, but faster innovation-based growth trajectory, many Chinese megacities have also been restructuring their economies to welcome increased competition.
In this heterogeneous retail environment, Shanghai remains a retail hotspot, boasting a single comprehensive market with all the ?above factors for success in China. Off the back of Planet Retail’s most recent visit to this city, this report explores the most up-to-date trends, which businesses should leverage in order to succeed in China’s most competitive hotspot.