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Retailing in China – Market Summary & Forecasts Comprehensive overview of the market, consumer, and competitive context, with retail sales value and

forecasts to 2018

Report Code: RT0151MR

Published: May 2014

Report Price: US$1,950 (Single Copy)

©Conlumino 2014 | This product is licensed and is not to be photocopied or reproduced. 2

Retailing in China – Market Summary & Forecasts

Published: May 2014

Summary

―Retailing in China – Market Summary & Forecasts‖, report, published by Conlumino, provides a detailed

analysis of both the historic and forecast market data of retail sales of different product segments across key

channels in China. In addition, it provides an overview of changing shopping trends, government policies

towards business, the influence of various economic variables on the retail industry, new online and technology

trends, the competitive landscape across product segments, and detail of key retailers.

Key Findings

Strong economic growth and the move to become a consumer led economy will be just one factor driving

significant growth in Chinese retail sales to 2018

A changing shopping mode- from functional, deal driven to emotional, status driven, is creating new

opportunities for both value for money and premium products

Presence in the online channel will be a key factor over the next five years, as online retail sales witness

high growth

The success of international fashion brands opens up new opportunities for international mass market and

value led brands in clothing and footwear in China

The food & grocery segment will continue to be dominated by local players

The high growth in the jewelry, watches and accessories segment will witness increased competition

Reasons to Buy

The report provides a comprehensive overview of the Chinese retail market for companies already

operating in and those wishing to enter the Chinese market.

Understand which channels and products will be the major winners and losers over the coming years and

plan accordingly, with a comprehensive coverage covering of 26 products, across 12 product sectors that

include: Clothing, Footwear, Books, News and Stationery, Electrical and Electronics, Food and Grocery,

Personal Care, Furniture and Floor Coverings, Home and Garden Products, Music, Video and

Entertainment Software, Sports and Leisure Equipment, Sports and Leisure Equipment, Luggage and

Leather Goods

Benefit from a detailed analysis of vital economic and population trends, key consumer and technology

trends influencing the retail market.

Monitor the competitive landscape with the analysis of key international and domestic players in each of the

12 product sectors.



Published: May 2014

1. Retail Topline

1.1 Total Retail

Total retail sales in China are projected to witness a healthy growth rate to 2018. The prime driver for the growth

of the industry is the correction in macroeconomic factors, including disposable income and stabilized consumer

confidence. The stabilizing economy is projected to uniformly drive growth in both offline online channels,

though the rate of growth will be higher in the online channel.

With stable growth, rising disposable incomes, the move to a consumer led economy and the expansion of

retail, consumers will continue to drive double digit growth in retail and it will continue to take larger share of

overall consumer spending. Online will have a higher rate of growth as more consumers gain access via tablets

and mobile devices, and broadband penetration increases.

Categories such as electrical and electronics, jewelry, watches, and accessories, and music, video, and

entertainment software, will have higher rates of growth as the younger generations move up the career ladder

and change their lifestyles. They have more disposable income, access to more choice, and a greater

inclination to spend.

The categories making the biggest gains online will be those where there is easy digital downloading, such as

books, music, and video. Additionally, categories in which it is easy to make price comparisons, such as

branded electrical products, and where there is increasing demand and easy delivery, such as clothing, will also

see high online growth.

An additional push to the retail industry will come from the online retailing channel, which is poised to witness a

considerable growth rate, primarily on the back of an increasing broadband penetration, and an ever increasing

adoption of the channel by consumers.is the total number of broadband users in the country is forecast to reach

xx%, xxx million users, by 2018.

1.1.1 Retail sales value and growth

Retail in China has enjoyed double digit growth for over a decade as the country enjoys positive economic

growth, rising disposable incomes and growing incomes. The global recession slowed growth but as the middle

classes expand, retailers spread to second and third tier cities, and online shopping takes off, spending will

increase as more consumers have greater access and inclination to spend.

Though population growth has been dampened by the one child policy, the population is still rising, by xx million

people in 2013. As the younger population matures and takes on higher paid employment than their parents’

generation, spending and volumes will continue to increase.



Published: May 2014

Figure 1: Retail Sales Value and Growth (CNY Billion, %) 2005–2013

Source: : World Bank Development Indicators and Conlumino / © Conlumino

The result is that retailing is taking a greater share of consumer spending in China – demonstrating why this is

such an attractive market for international retailers.



Published: May 2014

Figure 2: Retail Sales as % of Total Consumer Spend (%), 2005 and 2013

Source: Conlumino © Conlumino

Figure 3: Total Retail Sales and Growth Rate (CNY Billion, %), 2013 & 2018


2005 2013

Retail Sales as Percentage of total Consumer Spending (%)



Published: May 2014

2. Retail – Product Sectors

2.1 Product Sector Analysis

2.1.1 Electrical and Electronics

The outlook for the electrical and electronics market in China looks very promising and is projected to grow at a

CAGR of xx% over the forecast period. In 2013, the electrical and electronics sector had a share of xx % of total

retail in China. Rapid urbanization and improving lifestyles, with rising disposable income levels, will continue to

drive the market in the future.

Per capita spending on electrical and electronics products are estimated to grow at a CAGR of xx % during the

next five years. The demand for products with more advanced features and convenience, as well as new

technology, are the prime reasons behind increasing spending on electronics products. The continuous ride in

per capita income among consumers, and the shortening of the replacement cycle will create more demand for

electrical and electronics products during the forecast period.

Online spending on the electrical and electronics sector is expected to achieve a significant growth of xx%, to

reach an estimated value of CNYxx billion by 2018. The share of online spending on overall electrical and

electronics spending is likely to reach xx% in 2018. Giant electronics retailers, such as Gome Electrical

Appliance and Suning Appliance Company, have previously launched their virtual storefronts on popular online

platforms such as Tmall to gain maximum market share in the electrical and electronics sector.

Electrical and electronics specialists will be the leading retail channel for the electrical and electronics market in

China. Increasing penetration of lower tier cities and developed rural areas and broader range of product

offerings, will make these retailers more accessible to consumers. Consumers prefer to buy electrical goods

locally, rather than travelling to big box out of town stores, as Best Buy discovered when it tried to replicate its

US model in China.

Online retailers hold the second rank after electrical and electronics specialists. Altogether, both of these

channels are expected to hold a share of xx% of total spending on electrical and electronics products in 2018.



Published: May 2014

Figure 4: Share of Electrical and Electronics in overall Retail 2013 and 2018


Figure 5: Retail Sales Value and Growth (CNY Billion, %) of Electrical and Electronics 2013-2018


2013 2018Electrical and Electronics Share oftotal Retail



Published: May 2014

Summary Methodology

Overview

All data in this series of retail reports from Conlumino is rigorously sourced using a comprehensive,

standardized methodology. This methodology ensures that all data is thoroughly researched and cross–

checked against a number of sources and validation processes. At the core of this methodology is a

triangulated market sizing approach, which ensures that results from different sources and approaches,

including Conlumino’s own industry surveys, are compared and a final consensus number between these

inputs is derived. In addition, standardized processes and quality controls across the entire data

collection, analysis and publication process ensure compliance and cross–checking of the data occurs at

each stage of the methodology.

The triangulated market sizing method

The triangulation method ensures that the results from three distinct phases of the research are brought

together and cross–compared before finalized market numbers are derived:

1. Existing internal resources: as retail data is compiled using a rolling annual program of industry research, the first stage of producing the data is to review the existing internal information, both from the last major data release, as well as that which has been collected on an ongoing basis throughout the year. This includes inputs about market as well as individual retailer performance. These sources are then reviewed and incorporated into data collection processes and databases before the second intensive phase of desk research.

2. Extensive desk research: this phase of the methodology incorporates the main phase of secondary research. This research is initially conducted across a wealth of information sources, as listed below. In addition, the results of any relevant surveys from other Conlumino projects are also fed into data collection sheets. Online industry surveys can include industry opinion surveys of retailers’ — and their suppliers’ — sentiment and consumer surveys of purchasing and retail behavior. Secondary sources include, but are not limited to, the following:

a. Industry surveys b. Industry and trade association research c. Trade portals d. Company filings and analyst presentations e. Broker and investment analyst reports f. International organizations g. Government statistics h. Retail media i. National Press, including both business and consumer titles

3. Market modeling: the next stage in the process is to feed the results of the above into market

models, which also include drive–based forecasting tools — which analyze drivers such as disposable

income, product uptake, macro–economic drivers and market momentum — in order to fill in any gaps in

the data and update forecast numbers. At this stage, the market models also look to update channel



Published: May 2014

distribution data sets. For example, information found at the research and trend monitoring stage on

online retail sales would directly affect the channel distribution models.

4. Data finalization: the final stage of the process is the true triangulation of all the previous inputs.

At this stage data is created using the inputs to hand in a bottom–up fashion, starting with the inputs from

each of the previous three stages of the process for each data point to be published. This is done for all

the product, channel and country combinations covered in the data. At this stage, therefore, the project

analysts are constantly evaluating and deciding upon the relative merits of each of the inputs from the

research processes. Once a triangulated set of data has been finalized, these outputs are then thoroughly

cross–checked using a series of top–down checks which review the data against a series of reference

benchmarking, including known overall retail sizes, growth trends and per–capita spending rates.

Figure 6: The Triangulated Market Sizing Methodology

Source: Conlumino / © Conlumino



Published: May 2014

Industry surveys in the creation of retail market data

Stage 2 of the above process includes using the outputs of Conlumino’s surveys of consumers’ packaged

goods consumption and industry opinion. Every year Conlumino completes a large scale survey, with

over 120,000 responses, covering CPG purchasing and consumption habits in 10 core retail markets

around the globe. This major study, cross-referenced against the primary telephone research of product

market sizes by country, provides outputs against which relevant retail market data, focusing on the

grocery channel and core products in this channel are assessed. It should be noted that overall, this feeds

research into 3 of the 25 product categories covered. In addition, any other suitable surveys conducted by

Conlumino which also provide information on retail markets are mined for information to be put into the

data finalization process.

Quality control and standardized processes

Crucial to the function of the above method is the adoption of strict definitions for all products and

channels, and adherence to a standardized process at each and every stage in the methodology. By

following this approach all data is made cross-comparable across countries to ensure that analysis adds

to the understanding of market dynamics and trends.

The key elements of this approach are:

Strict channel definitions: the definition of each channel is the same in every country;

Strict product definitions: the definition of each product is the same in every country;

Standardized processes:

o Data capture – all data received as part of the research is captured in standardized files and in a

standard format. Any workings that analysts carry out on inputs, for example to correct for

misalignment in category coverage, are also covered in these sheets

o Data creation – all modeling and forecasting approaches are standardized in order to ensure

consistency

o Finalization and verification – systematic methods and approaches are used to finalize data

points

Country by country research structure: all research is conducted country by country in order to

ensure that market data reflect local market trends and contexts

Data checks during “bottom-up” creation: during the data creation and finalization stage analysts

refer back to initial sources and inputs in order to ensure accuracy in the data

Top down data audits and cross-checks: a large series of cross-checks across all the different

dimensions of the final data sets are run in order to identify any outliers or trends that do not fit with

Conlumino’s market understanding, as well as to conduct specific analyses against set proofing

criteria, such as abnormal growth rate changes, verifying data at both the overall and detailed level

against research inputs and checking per capita spends against other analysis of consumers’

spending in a country

Hierarchical review processes: finally, all of the above processes are subject to a hierarchical

review process which ensures that not only the core analysts within a team look at the data, but that

at each stage data is passed through several management layers in order that queries and data

review and sign-off are completed before any final data can be published



Published: May 2014

Related Reports

Clothing & Footwear Retailing in China – Market Summary & Forecasts

Furniture and Floor Coverings Retailing in China – Market Summary & Forecasts

Electrical and Electronics Retailing in China – Market Summary & Forecasts

Food and Grocery Retailing in China – Market Summary & Forecasts



Published: May 2014

Table of Contents

1. Introduction ....................................................................................................... 9

1.1 What is this Report About? ................................................................................................. 9

2. Executive Summary & Outlook ......................................................................... 10

3. Market Context ................................................................................................ 12

3.1 A strong economy with major growth potential for retailers ........................................... 12

3.1.1 Resilient GDP growth makes China 2nd

largest global economy ............................................. 12

3.1.2 Widening social welfare provisions should free up high savings levels .................................. 15

3.1.3 Employment shift from unskilled to skilled, rural to urban, manufacturing to service industries

16

3.1.4 Wage growth above inflation ................................................................................................. 18

3.1.5 Household consumption trebles driving spending power ...................................................... 19

3.2 Large population with growing prosperity makes China a big attraction for retail .......... 23

4. Chinese Shoppers ............................................................................................. 28

4.1 From functional to emotional ........................................................................................... 28

4.2 More opportunity for niche brands and mass market retailers ....................................... 30

4.3 Shopping a leisure activity ................................................................................................ 30

4.4 Two major events drive retail spend in China ................................................................... 30

4.5 High adoption of smartphones and tablets for shopping ................................................. 33

4.6 Counterfeiting forces consumers to trade up to premium for quality assurance ............ 34

4.7 Tourism /travel increases awareness of international brands ......................................... 34

5. Doing business in China .................................................................................... 37

5.1 Summary ........................................................................................................................... 37

5.2 Anti-corruption crackdown requires careful handling for foreign businesses ................. 38

5.3 Complex licensing procedures a hindrance for foreign retailers ...................................... 39

5.4 Favorable tax structure to encourage domestic and foreign investments ....................... 41

5.5 Impact of government regulations on the luxury market................................................. 41

6. Internet & technology ...................................................................................... 44

6.1 Broadband, Mobile Phone, and Internet Users ................................................................ 44

7. Retail Topline ................................................................................................... 50

7.1 Total Retail ........................................................................................................................ 50

7.1.1 Retail sales value and growth ................................................................................................. 50



Published: May 2014

7.1.2 Online Sales & Growth ............................................................................................................ 53

7.2 Summary of product sectors ............................................................................................. 54

7.2.1 Share of key product sectors .................................................................................................. 54

7.2.2 Key product sectors ................................................................................................................ 54

7.3 Summary of channels ........................................................................................................ 57

7.3.1 Spend per Channel .................................................................................................................. 57

7.3.2 Online Penetration of Key Product Sectors ............................................................................ 58

8. Retail – Product Sectors ................................................................................... 60

8.1 Product Sector Analysis ..................................................................................................... 60

8.1.1 Clothing ................................................................................................................................... 60

8.1.2 Footwear ................................................................................................................................. 67

8.1.3 Books, News and Stationery ................................................................................................... 73

8.1.4 Electrical and Electronics ........................................................................................................ 76

8.1.5 Food and Grocery.................................................................................................................... 80

8.1.6 Personal Care .......................................................................................................................... 84

8.1.7 Furniture and Floor Coverings ................................................................................................ 88

8.1.8 Home and Garden Products .................................................................................................... 92

8.1.9 Music, Video and Entertainment Software ............................................................................. 96

8.1.10 Sports and Leisure Equipment ................................................................................................ 99

8.1.11 Jewelry, Watches and Accessories ........................................................................................ 103

8.1.12 Luggage and Leather Goods .................................................................................................. 107

9. Retailers ......................................................................................................... 111

9.1 Clothing ........................................................................................................................... 113

9.2 Footwear ......................................................................................................................... 116

9.3 Books, News and Stationery ........................................................................................... 118

9.4 Electrical and Electronics ................................................................................................ 120

9.5 Food and Grocery ............................................................................................................ 123

9.6 Personal Care .................................................................................................................. 126

9.7 Furniture and Floor Coverings ......................................................................................... 128

9.8 Home and Garden Products ............................................................................................ 129

9.9 Music, Video and Entertainment Software ..................................................................... 131

9.10 Sports & Leisure equipment retailers ............................................................................. 132

9.11 Jewelry, watches and accessories retailers ..................................................................... 134



Published: May 2014

9.12 Luggage and Leather Goods ............................................................................................ 136

10. Appendix ........................................................................................................ 137

10.1 Definitions ....................................................................................................................... 137

10.1.1 This report provides 2013 actual sales; while forecasts are provided for 2013 – 2018 ....... 137

10.2 Summary Methodology................................................................................................... 143

10.2.1 Overview ............................................................................................................................... 143

10.2.2 The triangulated market sizing method ................................................................................ 143

10.2.3 Industry surveys in the creation of retail market data ......................................................... 145

10.2.4 Quality control and standardized processes ......................................................................... 145

10.3 About Conlumino ............................................................................................................ 146

10.4 Disclaimer ........................................................................................................................ 146



Published: May 2014

List of Figures

Figure 1: GDP Value (US$ Billion), 2007–2013e ........................................................................................................................................ 13 Figure 2: Growth Rate of GDP (%), 2007–2013e ........................................................................................................................................ 14 Figure 3: Forecasts for GDP Value and Growth (US$ Billion, %) 2013–2018............................................................................................. 15 Figure 4: Household Savings Rate as Share of GDP (%), 2003–2013 ........................................................................................................ 16 Figure 5: Share of Employment by Sector (% of Total Labor Force), 2003&2013e ..................................................................................... 17 Figure 6: Unemployment Rate (% of Total Labor Force), 2003–2013e ...................................................................................................... 17 Figure 7: Wage & Inflation Growth Rates (%), 2003–2013 .......................................................................................................................... 18 Figure 8: Household Consumption Expenditure of China (US$ Billion), 2003–2013.................................................................................... 19 Figure 9: Household Consumption Expenditure of Major Countries (US$ Billion), 2013 .............................................................................. 20 Figure 10: Growth of Household Consumption Expenditure (%), 2003–2013e ........................................................................................... 20 Figure 11: Disposable Income Value (CNY) 2003 and 2013 ....................................................................................................................... 21 Figure 12: Rural and Urban Populations (millions) 2003, 2013 and 2018.................................................................................................... 22 Figure 13: Total Population and Growth Rate (Millions, %), 2003–2018 ..................................................................................................... 24 Figure 14: Population Split by Gender (%), 2013and2018 .......................................................................................................................... 24 Figure 15: Population Split by Age Group (%), 2013 and 2018 ................................................................................................................... 26 Figure 16: Per Capita Spend on Retail (CNY), 2005and 2013 .................................................................................................................... 27 Figure 17: Per Capita Spend on Retail by Age Group (%), 2005and 2013 .................................................................................................. 27 Figure 18: The Changing Chinese Shopper ................................................................................................................................................ 29 Figure 19: Chinese New Year sales 2010-2014 .......................................................................................................................................... 31 Figure 20: Single Day sales 2009-2013 ...................................................................................................................................................... 32 Figure 21: M-tailing in China ....................................................................................................................................................................... 33 Figure 22: Prime Destination for Chinese Tourists Bar charts 2003 and 2013 E ......................................................................................... 35 Figure 23: Major Cities with High Spend on Retail ...................................................................................................................................... 36 Figure 24: Key Components of Doing Business in China Matrix ................................................................................................................. 37 Figure 25: Individual Income Tax and Enterprise Income Tax Rates in China............................................................................................. 41 Figure 26:Key Market Entry Requirements for China 2013 ......................................................................................................................... 43 Figure 27:Total Number of Fixed Broadband Users and Penetration (Millions, %), 2003–2013 ................................................................. 44 Figure 28:Forecast of Number of Fixed Broadband Users and Penetration (Millions, %), 2013–2018 ........................................................ 45 Figure 29:Total Number of Mobile Phone Users and Penetration (Millions, %), 2003–2013 ........................................................................ 46 Figure 30:Total Number of Internet Users and Growth Rate (Millions,%), 2003–2013 ................................................................................ 46 Figure 31: Penetration of Social Network among Internet Users (%) .......................................................................................................... 47 Figure 32:Augmented Reality Supermarkets from Yihodian ........................................................................................................................ 48 Figure 33: Retail Sales Value and Growth (CNY Billion, %) 2005–2013 ..................................................................................................... 51 Figure 34: Retail Sales as % of Total Consumer Spend (%), 2005 and 2013 ............................................................................................. 52 Figure 35: Total Retail Sales and Growth Rate (CNY Billion, %), 2013 & 2018 ........................................................................................... 52 Figure 36: Online Sales and Growth Rate (CNY Billion, %) 2013-2018 ..................................................................................................... 53 Figure 37: Share of Key Product Sectors (%), 2013 and 2018 .................................................................................................................... 54 Figure 38: Growth Rate of Key Product Sectors vs Growth of Total Retail (%), 2013–2018 ........................................................................ 55 Figure 39: Value Growth of Key Product Sectors (CNY Billion), 2013–2018 ............................................................................................... 56 Figure 40: Spend Per Channel 2013and 2018 ............................................................................................................................................ 57 Figure 41: Online Penetration of Key Product Sectors (%), 2013 ................................................................................................................ 58 Figure 42: Online Penetration of Key Product Sectors (%), 2018 ................................................................................................................ 59 Figure 43: Share of Clothing in overall Retail 2013 and 2018 ..................................................................................................................... 62 Figure 44: Retail Sales Value and Growth (CNY Billion, %) of Clothing 2013-2018 .................................................................................... 63 Figure 45: Spend per Head on Clothing 2013 and 2018 ............................................................................................................................. 63 Figure 46: Share of Clothing by Women’s Wear, Men’s Wear and Children’s Wear 2013 and 2018 ........................................................... 64 Figure 47: Women’s Wear Sales Value and Growth (CNY Billion, %) 2013-2018 ....................................................................................... 64 Figure 48: Men’s Wear Sales Value and Growth (CNY Billion, %) 2013-2018 ............................................................................................ 65 Figure 49: Children’s Wear Sales Value and Growth (CNY Billion, %) 2013-2018 ...................................................................................... 65 Figure 50: Online Spend in Clothing 2013-2018 ......................................................................................................................................... 66 Figure 51: Online Share of Total Clothing Spend 2013 and 2018 ............................................................................................................... 66 Figure 52: Spending per Channel in Clothing (%) 2013 and 2018 .............................................................................................................. 67 Figure 53: Share of Footwear in overall Retail 2013 and 2018.................................................................................................................... 68



Published: May 2014

Figure 54: Retail Sales Value and Growth (CNY Billion, %) of Footwear 2013-2018................................................................................... 68 Figure 55: Spend per Head on Footwear 2013 and 2018 ........................................................................................................................... 69 Figure 56: Share of Footwear by Women’s Footwear, Men’s Footwear and Children’s Footwear 2013 ...................................................... 69 Figure 57: Women’s Footwear Sales Value and Growth (CNY Billion, %) 2013-2018 ................................................................................. 70 Figure 58: Men’s Footwear Sales Value and Growth (CNY Billion, %) 2013-2018 ...................................................................................... 70 Figure 59: Children’s Footwear Sales Value and Growth (CNY Billion, %) 2013-2018 ................................................................................ 71 Figure 60: Online Spend in Footwear 2013-2018 ....................................................................................................................................... 71 Figure 61: Online Share of total Footwear Spend 2013 and 2018 ............................................................................................................... 72 Figure 62: Spending per Channel in Footwear (%) 2013 and 2018 ............................................................................................................. 72 Figure 63: Share of Books, News and Stationery in overall Retail 2013 and 2018 ...................................................................................... 73 Figure 64: Retail Sales Value and Growth (CNY Billion, %) of Books, News and Stationery 2013-2018 ..................................................... 74 Figure 65: Spend per Head on Books, News and Stationery 2013 and 2018 .............................................................................................. 74 Figure 66: Online Spend in Books, News and Stationery 2013-2018 .......................................................................................................... 75 Figure 67: Online Share of total Books, News and stationery Spend 2013 and 2018 .................................................................................. 75 Figure 68: Spending per Channel in Books, News and stationery (%) 2013 and 2018 ................................................................................ 76 Figure 69: Share of Electrical and Electronics in overall Retail 2013 and 2018 ........................................................................................... 77 Figure 70: Retail Sales Value and Growth (CNY Billion, %) of Electrical and Electronics 2013-2018 .......................................................... 77 Figure 71: Spend per Head on Electrical and Electronics 2013 and 2018 ................................................................................................... 78 Figure 72: Online Spend in Electrical and Electronics 2013-2018 ............................................................................................................... 78 Figure 73: Online Share of total Electrical and Electronics Spend 2013 and 2018 ...................................................................................... 79 Figure 74: Spending per Channel in Electrical and Electronics (%) 2013 and 2018 .................................................................................... 79 Figure 75: Share of Food and Grocery in overall Retail 2013 and 2018 ...................................................................................................... 81 Figure 76: Retail Sales Value and Growth (CNY Billion, %) of Food and Grocery 2013-2018 ..................................................................... 81 Figure 77: Spend per Head on Food and Grocery 2013 and 2018 .............................................................................................................. 82 Figure 78: Online Spend in Food and Grocery 2013-2018 .......................................................................................................................... 82 Figure 79: Online Share of total Food and Grocery Spend 2013 and 2018 ................................................................................................. 83 Figure 80: Spending per Channel in Food and Grocery (%) 2013 and 2018 ............................................................................................... 83 Figure 81: Share of Personal Care in overall Retail 2013 and 2018 ............................................................................................................ 85 Figure 82: Retail Sales Value and Growth (CNY Billion, %) of Personal Care 2013-2018 ........................................................................... 85 Figure 83: Spend per Head on Personal Care 2013 and 2018.................................................................................................................... 86 Figure 84: Online Spend in Personal Care 2013-2018 ................................................................................................................................ 86 Figure 85: Online Share of total Personal Care Spend 2013 and 2018 ....................................................................................................... 87 Figure 86: Spending per Channel in Personal Care (%) 2013 and 2018 ..................................................................................................... 87 Figure 87: Share of Furniture and Floor Coverings in overall Retail 2013 and 2018.................................................................................... 88 Figure 88: Retail Sales Value and Growth (CNY Billion, %) of Furniture and Floor Coverings 2013-2018 ................................................... 89 Figure 89: Spend per Head on Furniture and Floor Coverings 2013 and 2018 ........................................................................................... 89 Figure 90: Online Spend in Furniture and Floor Coverings 2013-2018 ....................................................................................................... 90 Figure 91: Online Share of total Furniture and Floor Coverings Spend 2013 and 2018 ............................................................................... 90 Figure 92: Spending per Channel in Furniture and Floor Coverings (%) 2013 and 2018 ............................................................................. 91 Figure 93: Share of Home and Garden Products in overall Retail 2013 and 2018 ...................................................................................... 92 Figure 94: Retail Sales Value and Growth (CNY Billion, %) of Home and Garden Products 2013-2018...................................................... 93 Figure 95: Spend per Head on Home and Garden Products 2013 and 2018 .............................................................................................. 93 Figure 96: Online Spend in Home and Garden Products 2013-2018 .......................................................................................................... 94 Figure 97: Online Share of total Home and Garden Products Spend 2013 and 2018 .................................................................................. 94 Figure 98: Spending per Channel in Home and Garden Products (%) 2013 and 2018 ................................................................................ 95 Figure 99: Share of Music, Video and Entertainment Software in overall Retail 2013 and 2018 .................................................................. 96 Figure 100: Retail Sales Value and Growth (CNY Billion, %) of Music, Video and Entertainment Software 2013-2018 ............................... 97 Figure 101: Spend per Head on Music, Video and Entertainment Software 2013 and 2018 ....................................................................... 97 Figure 102: Online Spend in Music, Video and Entertainment Software 2013–2018 ................................................................................... 98 Figure 103: Online Share of total Music, Video and Entertainment Software Spend 2013 and 2018 ........................................................... 98 Figure 104: Spending per Channel in Music, Video and Entertainment Software (%) 2013 and 2018 ......................................................... 99 Figure 105: Share of Sports and Leisure Equipment in overall Retail 2013 and 2018 ............................................................................... 100 Figure 106: Retail Sales Value and Growth (CNY Billion, %) of Sports and Leisure Equipment 2013-2018 .............................................. 100 Figure 107: Spend per Head on Sports and Leisure Equipment 2013 and 2018 ....................................................................................... 101 Figure 108: Online Spend in Sports and Leisure Equipment 2013-2018 ................................................................................................... 101 Figure 109: Online Share of total Sports and Leisure Equipment Spend 2013 and 2018 .......................................................................... 102



Published: May 2014

Figure 110: Spending per Channel in Sports and Leisure Equipment (%) 2013 and 2018 ........................................................................ 102 Figure 111: Share of Jewelry, Watches and Accessories in overall Retail 2013 and 2018 ........................................................................ 103 Figure 112: Retail Sales Value and Growth (CNY Billion, %) of Jewelry, Watches and Accessories 2013-2018 ....................................... 104 Figure 113: Spend per Head on Jewelry, Watches and Accessories 2013 and 2018 ................................................................................ 104 Figure 114: Online Spend in Jewelry, Watches and Accessories 2013-2018 ............................................................................................ 105 Figure 115: Online Share of total Jewelry, Watches and Accessories Spend 2013 and 2018 ................................................................... 105 Figure 116: Spending per Channel in Jewelry, Watches and Accessories (%) 2013 and 2018 ................................................................. 106 Figure 117: Share of Luggage and Leather Goods in overall Retail 2013 and 2018 ................................................................................. 107 Figure 118: Retail Sales Value and Growth (CNY Billion, %) of Luggage and Leather Goods 2013-2018 ................................................. 108 Figure 119: Spend per Head on Luggage and Leather Goods 2013 and 2018 ......................................................................................... 108 Figure 120: Online Spend in Luggage and Leather Goods 2013-2018 ..................................................................................................... 109 Figure 121: Online Share of total Luggage and Leather Goods Spend 2013 and 2018 ............................................................................. 109 Figure 122: Spending per Channel in Luggage and Leather Goods (%) 2013 and 2018 ........................................................................... 110 Figure 123: Major Domestic Retailers in China ......................................................................................................................................... 111 Figure 124: Major International Retailers in China .................................................................................................................................... 112 Figure 125: The Triangulated Market Sizing Methodology ........................................................................................................................ 144



Published: May 2014

List of Tables

Table 1: Custom Duty Rates and Consumption Tax Rates of Luxury Goods .............................................................................................. 42 Table 2: Key Clothing Retailers in China .................................................................................................................................................. 113 Table 3: Key Footwear Retailers in China................................................................................................................................................. 116 Table 4: Key Books, News and Stationery Retailers in China ................................................................................................................... 118 Table 5: Key Electrical and Electronics Retailers in China ........................................................................................................................ 120 Table 6: Key Food and Grocery Retailers in China ................................................................................................................................... 123 Table 7: Key Personal Care Retailers in China ......................................................................................................................................... 126 Table 8: Key Furniture and Floor Coverings Retailers in China ................................................................................................................. 128 Table 9: Key Home and Garden Products Retailers in China.................................................................................................................... 129 Table 10: Key Music, Video and Entertainment Retailers in China............................................................................................................ 131 Table 11: Key Sports & Leisure equipment Retailers in China .................................................................................................................. 132 Table 12: Key Jewelry, watches, and accessories Retailers in China ....................................................................................................... 134 Table 13: Key Luggage and Leather Goods Retailers in China................................................................................................................. 136 Table 14: China Exchange Rate CNY–USD (Annual Average), 2008–2013 ............................................................................................. 137 Table 15: China Exchange Rate CNY–USD (Annual Average), 2014–2018 Forecasts ............................................................................. 137 Table 16: Conlumino Retail Channel Definitions ....................................................................................................................................... 138 Table 17: Conlumino Retail Category Definitions ...................................................................................................................................... 140



Published: May 2014

About Conlumino

Conlumino Global Retail offers a comprehensive 360° view of the retail landscape. A team of analysts,

with more than 200 years of combined experience, help you identify and understand the most current

retail trends.

Last year hundreds of retail businesses across the globe used our research to make critical business

decisions.

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