McKinsey: China is the most difficult to conquer the retail market

The world brand laboratory (http://brand.) Message: China is the world recognized the most attractive retail market.

China retail sales for 2006 amounted to $ 8000, second only to the United States and Japan, the scale is greater than the outside except Japan Asian countries combined.

The Chinese market is the world's fastest growing retail market.

According to our estimates, the growth of the Chinese market accounted for 2003 to 2008, the global retail net growth of 15%. If you remove the United States, the share will be accounted for 38 per cent. 5 years, the Chinese market, the value will reach 1.3 trillion.

But at the same time, China is also the most difficult to conquer the market. The vast geographical supply chain not only as a source of great difficulty, and parts of the consumer preferences and tastes quite different. 　 　　Huge market size and diversification, determines no differentiation by retail model destined to fail. This rule applies not only to try to open the Chinese market situation of foreign retailers, but also to seek to establish a national impact of local retailers.

Research focus on shopping style

Retailers need to know not only what kind of Chinese consumers to purchase merchandise and purchase motivations and, more importantly, China consumer specific shopping habits and behaviour.

Through interviews with retailers, we found many retailers did not obtain the desired profit.

In order to discover why, McKinsey Company launched a global survey, "BRIC" (Brazil, China, Russia and India), consumers and the developed countries (France and the United States) consumer shopping behavior differences.

And many key survey consumers on product and brand attitude survey, McKinsey report focused on consumer shopping – they and who, when, and why shopping, and they expect the shopping experience.

Our research found that Chinese consumers are used to shopping time higher than the global consumer, their average weekly hours for shopping is 9.8 hours, the other three countries of the "brick" 7.2 hours, the United States only 3.6 hours; 41% of respondents believe that shopping is their favorite entertainment.

Fine solution for shopping features

Chinese consumers on any individual store loyalty, retailers are more difficult to get more consumer wallet share. Only 50% of Chinese consumers is a store of loyal customers, and other "brick in the three countries accounted for an average of 59%, France to 67%.