Retail Annual Contribution – Regional city profile in South China
Report Highlights:
Despite the economic slow-down in China, South China has continued to be an active retail food consumption market with an estimated total of $612 billion-worth in retail sales in 2011. While Guangdong Province is a pioneer in retail development, Hunan and Fujian provinces continue to be the largest consumption centers in South China. Guangxi and Hainan provinces have been catching up in recent years. The ever increasing operational costs in first tier cities encouraged retailers to shift their strategic focus towards targeting potential gains in secondary markets. Secondary markets have grown at a faster pace as a result of continuous urbanization. The emerging “middle-class” residing in urban areas pay greater attention to healthy lifestyles and have a stronger purchasing power than before. With rising disposable incomes, these consumers have the capacity to purchase higher value goods. This means there is a potential market for imported food and drink products in the near future. In South China, food expenditures account for an estimated 36 percent of the total household disposable income. Stronger demand for imported food and drink is a result of this new surplus available to local consumers.
