South China - Franchise & Retail

A Hot Tip about Retail Trade and Electronic Commerce in China

Last updated: 23 Feb 2011

South China’s Guangdong Province is one of China’s most sophisticated consumer markets, with diverse, modern retail operations such as department stores, shopping malls, chain stores, supermarkets, and convenience stores.

A Growing Consumer Market South China South China?s Guangdong Province is one of China?s Snapshot: most sophisticated consumer markets, with diverse, modern retail operations such as department stores, Franchise & Retail  shopping malls, chain stores, supermarkets, and   convenience stores. Guangdong is also the largest consumer market in China with retail sales increasing Major Trade Show in 2011: by 14.7% to $218 billion in 2009, accounting for th 13 China Franchise Convention & Exhibition 11.2% of the national total. In addition, Guangdong is China?s second most populated province, with a Venue: China National Convention Center, Beijing population of 95.4 million as of 2010 (compared to California?s 2010 population of 37.2 million). Date: May 7-9, 2011 Guangdong?s residents also have one of the highest level of disposable incomes in China (per capita http://www.chinafranchiseexpo.com/en/default.asp  disposable income in 2009 was $5,965), and are generally very accepting of foreign brands. Average Opportunities and Trends incomes in Guangzhou and Shenzhen, the two largest Long-term potential is found in attracting middle- class Chinese consumers, one of the fastest- cities in Guangdong, are actually higher than in growing segments of the population. The rising Shanghai and Beijing. Furthermore, with the economy in China is lifting hundreds of millions continued rapid pace of urbanization and growing of households into prosperity. The middle class affluence of the population, retail sales of major currently constitutes 5% of all households, but is consumer goods in Guangzhou will continue to be expected to increase to 45% of all households by robust in spite of the recent economic slowdown. 2020. Middle class households are defined as those with annual incomes ranging from $6,000 Composition of Per Capita Expenditure to $25,000, but after considering China?s lower of Urban Households (%) cost of living, these households can afford a lifestyle similar to that of a household earning 2000 2009 $40,000 in the United States. China could have Food 38.6 36.9 over 700 million middle class citizens by 2020, compared to the 125 million in 2008. In general, Clothing 4.6 6.3 key ways to attract these new middle-class Medicine & medical 4.3 5.5 customers are to offer technology, quality, and/or services middle to high-end brand names. Transportation & 13.4 17.7 communications For More Information Contact: Household Appliances and 7.5 6.2 Cathy Wang, Eileen Bai & Andrew Gately Services U.S. Commercial Service Recreational, Educational American Consulate General Guangzhou 11.5 12.9 and Cultural Services Email: cathy.wang@trade.gov Residence 13.7 10.8 eileen.bai@trade.gov andrew.gately@trade.gov Source: Guangdong Statistical Yearbook, 2010 Phone: (86-20) 8667-4011 ext. 616 or ext. 628 Fax: (86?20) 8666?6409
Posted: 28 January 2011, last updated 23 February 2011

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