Supermarket & Hypermarket Retailing in China 2009: A Market Analysis

Published by: Access Asia

Published: May. 26, 2009 - 231 Pages

Table of Contents

INTRODUCTION

Report Coverage

Abbreviations Used

1 NATIONAL SUPERMARKET RETAIL MARKET

1.1 Overview

1.2 Supermarkets: Defining The Potential Market

1.2.1 Defining The Potential Market: So, How Big is the Consumer Market?

1.2.2 Defining The Potential Market: The Mythical Chinese Middle Class

Table 1.1 MIDDLE AND UPPER INCOME HOUSEHOLDS IN CHINA, 1995/2000/2005/2010/2015

Table 1.2 TOTAL CONSUMPTION BY MIDDLE AND UPPER INCOME HOUSEHOLDS, 2005/2010/2015

Table 1.3 CONSUMPTION BY MIDDLE AND UPPER INCOME HOUSEHOLDS & % OF TOTAL HOUSEHOLDS, 1995/2000/2005/2010/2015

1.3 The Supermarket Industry Significance

1.3.1 The Supermarket Industry Significance: Macroeconomic Context

Table 1.4 RETAIL SALES AS A % OF GDP, 2002-2008

1.3.2 The Supermarket Industry Significance: The Total Value of the Retail Market in China

Table 1.5 TOTAL RETAIL CURRENT MARKET VALUE, 1999-2008

Table 1.6 TOTAL RETAIL CONSTANT MARKET VALUE, 1999-2008

Table 1.7 PER CAPITA CURRENT VALUE RETAIL MARKET, 1999-2008

1.3.3 The Supermarket Industry Significance: Developing Domestic Consumption

1.3.4 The Supermarket Industry Significance: What Is The Definition of a Supermarket in China?

Nobody Really Knows How Many Shops There Are In China

Nobody Really Knows How Many Shop Assistants There Are In China

Problems With Definitions Of Retail Sectors

1.3.5 The Supermarket Industry Significance: Total Retail Industry Above the Government Statistics Threshold

Table 1.8 TOTAL RETAIL INDUSTRY ABOVE THE GOVERNMENT STATISTICS THRESHOLD, 2002-2008

1.3.6 The Supermarket Industry Significance: The Total Retail Industry

Table 1.9 THE TOTAL RETAIL INDUSTRY STRUCTURE, 2002-2008

1.3.7 The Supermarket Industry Significance: Supermarket Significance Within the Total Retail Industry

Table 1.10 SUPERMARKET SIGNIFICANCE WITHIN THE TOTAL RETAIL INDUSTRY, 2002-2008

1.4 Supermarket Industry Overall Structure

1.4.1 Supermarket Industry Overall Structure: Above the Official Benchmark

Table 1.11 SUPERMARKET TOTAL OUTLETS, FLOOR SPACE, STAFF, SALES & PROFITS FOR CHAIN STORES ABOVE THE GOVERNMENT STATISTICAL THRESHOLD, 2002-2008

Table 1.12 SUPERMARKET AVERAGE OUTLET FLOOR SPACE & STAFF FOR CHAIN STORES ABOVE THE GOVERNMENT STATISTICAL THRESHOLD, 2002-2008

Table 1.13 SUPERMARKET AVERAGE OUTLET SALES FOR CHAIN STORES ABOVE THE GOVERNMENT STATISTICAL THRESHOLD, 2002-2008

Table 1.14 SUPERMARKET AVERAGE OUTLET NET PROFITS FOR CHAIN STORES ABOVE THE GOVERNMENT STATISTICAL THRESHOLD, 2002-2008

1.4.2 Supermarket Industry Overall Structure: The Official Benchmark & Beyond

Table 1.15 SUPERMARKET TOTAL OUTLETS, FLOOR SPACE, STAFF, SALES & PROFITS FOR CHAIN STORES ABOVE & BELOW THE GOVERNMENT STATISTICAL THRESHOLD, 2002-2008

Table 1.16 SUPERMARKET AVERAGE OUTLET FLOOR SPACE & STAFF FOR CHAIN STORES ABOVE & BELOW THE GOVERNMENT STATISTICAL THRESHOLD, 2002-2008

Table 1.17 SUPERMARKET AVERAGE OUTLET SALES FOR CHAIN STORES ABOVE & BELOW THE GOVERNMENT STATISTICAL THRESHOLD, 2002-2008

Table 1.18 SUPERMARKET AVERAGE OUTLET NET PROFITS FOR CHAIN STORES ABOVE & BELOW THE GOVERNMENT STATISTICAL THRESHOLD, 2002-2008

1.5 Supermarket Industry Sectors By Size

1.5.1 Supermarket Industry Sectors By Size: Size Definitions & Averages

Table 1.19 ESTIMATED AVERAGE SUPERMARKET OUTLET SALES, PROFITS, SIZE & STAFF (INCLUDING STORES BELOW THE GOVERNMENT STATISTICAL THRESHOLD) BY BROAD SIZE CLASS OF STORE, 2002-2008

1.5.2 Supermarket Industry Sectors By Size: Outlets

Table 1.20 ESTIMATED SUPERMARKET NUMBER OF OUTLETS (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD) BY BROAD SIZE CLASS OF STORE, 2002-2008

1.5.3 Supermarket Industry Sectors By Size: Floorspace

Table 1.21 ESTIMATED SUPERMARKET AREA OF FLOORSPACE (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD) BY BROAD SIZE CLASS OF STORE, 2002-2008

1.5.4 Supermarket Industry Sectors By Size: Staff

Table 1.22 ESTIMATED SUPERMARKET NUMBER OF STAFF (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD) BY BROAD SIZE CLASS OF STORE, 2002-2008

1.5.5 Supermarket Industry Sectors By Size: Sales

Table 1.23 ESTIMATED SUPERMARKET SALES REVENUE (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD) BY BROAD SIZE CLASS OF STORE, 2002-2008

1.5.6 Supermarket Industry Sectors By Size: Profits

Table 1.24 ESTIMATED SUPERMARKET NET PROFITS (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD) BY BROAD SIZE CLASS OF STORE, 2002-2008

1.5.7 Supermarket Industry Sectors By Size: Footfall & Basket Size

Table 1.25 AVERAGE SUPERMARKET CUSTOMER VISITS & BASKET VALUE (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD) BY BROAD SIZE CLASS OF STORE, 2002-2008

1.6 Supermarket Industry By City Tier

1.6.1 Supermarket Industry By City Tier: Differences by City Tier

1.6.2 Supermarket Industry By City Tier: Outlets

Table 1.26 ESTIMATED SUPERMARKET NUMBER OF OUTLETS (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD) BY CITY-TIER LOCATION, 2002-2008

1.6.3 Supermarket Industry By City Tier: Floorspace

Table 1.27 ESTIMATED SUPERMARKET FLOORSPACE (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD) BY CITY-TIER LOCATION, 2002-2008

1.6.4 Supermarket Industry By City Tier: Staff

Table 1.28 ESTIMATED SUPERMARKET STAFF (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD) BY CITY-TIER LOCATION, 2002-2008

1.6.5 Supermarket Industry By City Tier: Sales

Table 1.29 ESTIMATED SUPERMARKET SALES (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD) BY CITY-TIER LOCATION, 2002-2008

1.6.6 Supermarket Industry By City Tier: Profits

Table 1.30 ESTIMATED SUPERMARKET PROFITS (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD) BY CITY-TIER LOCATION, 2002-2008

1.6.7 Supermarket Industry By City Tier: Averages

Table 1.31 ESTIMATED AVERAGE SUPERMARKET PER OUTLET STAFF, FLOORSPACE, SALES & PROFIT (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD) BY CITY-TIER LOCATION, 2002-2008

1.7 The Relative Potential Markets in Urban Areas

1.7.1 The Relative Potential Markets in Urban Areas: The Retail Market Split

Table 1.32 RETAIL SALES VALUE BY HABITATION, 2002-2008

Table 1.33 RETAIL SALES % BREAKDOWN BY HABITATION, 2002-2008

1.7.2 The Relative Potential Markets in Urban Areas: The Leading Commercial Cities

Table 1.34 LEADING CITIES KEY ECONOMIC INDICATORS, 2007

1.7.3 The Relative Potential Markets in Urban Areas: High Levels of Savings - Self-taxation?

Table 1.35 LEADING CITIES KEY HOUSEHOLD SAVINGS INDICATORS, 2006/2007

1.7.4 The Relative Potential Markets in Urban Areas: Urban Consumer Spending Power

Table 1.36 URBAN AVERAGE HOUSEHOLD EXPENDABLE INCOME, EXPENDITURE, SAVINGS & POTENTIAL EXPENDABLE INCOME AFTER BASIC OUTGOINGS, 2002-2008

1.7.5 The Relative Potential Markets in Urban Areas: China’s Leading Shoppers Only Spend US$5 A Day!

Table 1.37 US$ PER CAPITA RETAIL SALES BY TOP-, MIDDLE- & BOTTOM-SCALES, 2002-2008

1.7.6 The Relative Potential Markets in Urban Areas: Defining “Consuming China”

Table 1.38 POPULATION AND PER CAPITA GDP OF “CONSUMING CHINA”, 2008

Table 1.39 TWO COMPARATIVE ESTIMATES OF THE TOTAL SIZE AND SHAPE OF “CONSUMING CHINA”, 2008

1.7.7 The Relative Potential Markets in Urban Areas: Quantifying “Consuming China”

Table 1.40 COMPARATIVE BREAKDOWN OF AVERAGE HOUSEHOLD INCOME & SPENDING IN “CONSUMING CHINA” CITIES’ AGAINST TOTAL NATIONAL AVERAGE, 2008

1.7.8 The Relative Potential Markets in Urban Areas: The Yangzi River Delta (YRD)

Table 1.41 SUPERMARKET NUMBERS & TOTAL AND AVERAGE OUTLET RETAIL SALES FOR CHAIN RETAILERS ABOVE OFFICIAL STATISTICS THRESHOLD BY CITY IN THE YANGZI RIVER DELTA AREA, 2004-2007

1.7.9 The Relative Potential Markets in Urban Areas: The Pearl River Delta (PRD)

Table 1.42 SUPERMARKET NUMBERS & TOTAL AND AVERAGE OUTLET RETAIL SALES FOR CHAIN RETAILERS ABOVE OFFICIAL STATISTICS THRESHOLD BY CITY IN THE PEARL RIVER DELTA AREA, 2004-2007

1.7.10 The Relative Potential Markets in Urban Areas: The Beijing-Tianjin Corridor (BTC)

Table 1.43 SUPERMARKET NUMBERS & TOTAL AND AVERAGE OUTLET RETAIL SALES FOR CHAIN RETAILERS ABOVE OFFICIAL STATISTICS THRESHOLD BY CITY IN THE BEIJING-TIANJIN CORRIDOR REGION, 2004-2007

1.8 Does Rural China Have a Potential?

1.8.1 Does Rural China Have a Potential?: Per-capita Sales by Province

Map 1.1 PER CAPITA RETAIL SALES BY PROVINCE, 2000, 2007, 2008

Table 1.44 PER CAPITA RETAIL SALES BY PROVINCE, 2002-2008

1.8.2 Does Rural China Have a Potential?: Rural Retailing Development Project

1.9 Leading Retailers

1.9.1 Leading Retailers: Top 50 FMCG Chainstore Retailers’ Turnover & Stores

Table 1.45 CHINA’S TOP 50 FAST MOVING CONSUMER GOODS (FMCG) CHAIN-STORE RETAILERS TOTAL SALES TURNOVERS AND OUTLET NUMBERS, 2008

Table 1.46 CHINA’S TOP 50 FAST MOVING CONSUMER GOODS (FMCG) CHAIN-STORE RETAILERS AVERAGE OUTLET SALES TURNOVER, 2008

1.9.2 Leading Retailers: Top-10 Foreign-invested Supermarket Retailers

Table 1.47 COMPARISON OF CHINA’S 10 LEADING FOREIGN-INVESTED SUPERMARKET/HYPERMARKET RETAIL CHAINS, 2004-2008

1.9.3 Leading Retailers: Selected Retailer Same Store Sales Growth

Table 1.48 SAME-STORE SALES GROWTH OF SELECTED RETAILERS, 2004-2008

1.9.4 Leading Retailers: Selected Listed Retailer Non-retail Revenue Significance

Table 1.49 OTHER REVENUE AS A % OF SELECTED LISTED RETAILERS’ TOTAL REVENUE, 2004-2008

1.9.5 Leading Retailers: Selected Listed Retailer Net Profit Margins

Table 1.50 SELECTED LISTED RETAILERS’ NET PROFIT MARGINS, 2004-2008

1.9.6 Leading Retailers: Selected Listed Retailer Operating Profit Margins

Table 1.51 SELECTED LISTED RETAILERS’ OPERATING PROFIT MARGINS, 2004-2008

1.9.7 Leading Retailers: Selected Listed Retailer Gross Profit Margins

Table 1.52 SELECTED LISTED RETAILERS’ GROSS PROFIT MARGINS, 2004-2008

1.9.8 Leading Retailers: Selected Listed Supermarket Retailer Gross Profit Margins

Table 1.53 SUPERMARKET/HYPERMARKET/WAREHOUSE STORE SELECTED LISTED RETAILERS’ GROSS PROFIT MARGINS, 2004-2008

1.9.9 Leading Retailers: Selected Listed Retailer Supermarket Business Share of Revenue

Table 1.54 SUPERMARKET/HYPERMARKET/WAREHOUSE STORE SELECTED LISTED RETAILERS’ REVENUE SHARES, 2004-2008

1.9.10 Leading Retailers: Selected Listed Supermarket Retailer Current Ratios

Table 1.55 CURRENT RATIO OF SELECTED RETAILERS, 2004-2008

1.9.11 Leading Retailers: Selected Listed Supermarket Retailer Debt-Equity Ratios

Table 1.56 DEBT TO EQUITY RATIO OF SELECTED RETAILERS, 2004-2008

1.9.12 Leading Retailers: Selected Listed Supermarket Retailer Return on Assets

Table 1.57 RETURN ON ASSETS OF SELECTED LISTED RETAILERS, 2004-2008

1.10 Retail Prices & Operational Costs

1.10.1 Prices: Retail Price Indices

Table 1.58 AVERAGE INCOME ANNUAL GROWTH BY SECTOR, 2004-2007

Table 1.59 RETAIL PRICE INDICES BY BROAD SECTOR, 2000-2008*

1.10.2 Retail Prices & Operational Costs: Outlet Rent

Table 1.60 NATIONAL AVERAGE RETAIL PROPERTY RENTAL PRICE, 2001-2008

1.10.3 Retail Prices & Operational Costs: Salaries

Table 1.61 AVERAGE RETAIL STAFF SALARIES BY PROVINCE, 2002-2008

Table 1.62 % ANNUAL & TOTAL GROWTH OF AVERAGE RETAIL STAFF SALARIES BY PROVINCE, 2002-2008

Table 1.63 AVERAGE RETAIL STAFF SALARY BILL PER OUTLET, 2001-2007

1.10.4 Retail Prices & Operational Costs: Business Taxes

1.10.5 Retail Prices & Operational Costs: Operating Costs

Table 1.64 LIANHUA SUPERMARKET BREAKDOWN OF OPERATIONAL COSTS, 2005-2008

Table 1.65 THE LEADING 10 LISTED DOMESTIC RETAIL COMPANIES’ BREAKDOWN OF OPERATIONAL COSTS, 2005-2008

1.11 Outlook

1.11.1 Outlook: Forecast Trends

Year of the Ox: Slow and Steady

Costs of Operation

Consumer Thrift

Company Competition

Urbanisation

1.11.2 Outlook: Total Market Size

Table 1.66 FORECAST TOTAL CONSTANT VALUE RETAIL SALES, 2009-2013

1.11.3 Outlook: Food/Non-food & Urban/Rural Values

Table 1.67 FORECAST CONSTANT VALUE RETAIL MARKET BY FOOD/NON-FOOD & URBAN/RURAL SPLITS, 2009-2013

1.11.4 Outlook: Food/Non-food & Urban/Rural Shares

Table 1.68 % BREAKDOWN OF FORECAST CONSTANT VALUE RETAIL MARKET BY FOOD/NON-FOOD & URBAN/RURAL SPLITS, 2009-2013

1.11.5 Outlook: Growth Rates

Table 1.69 ANNUAL GROWTH RATES FOR FORECAST CONSTANT VALUE RETAIL MARKET BY FOOD/NON-FOOD & URBAN/RURAL SPLITS, 2009-2013

1.11.6 Outlook: Supermarket Sector Measures

Table 1.70 FORECAST TOTAL SUPERMARKET SALES, PROFITS, SIZE & STAFF (ABOVE THE GOVERNMENT STATISTICAL THRESHOLD), 2009-2013

2 CURRENT ISSUES

2.1 Rural Retailing Development Project

2.1.1 Rural Retailing Development Project: Background

2.1.2 Rural Retailing Development Project: Official Standards

Table 2.1 STANDARDS FOR COUNTRYSIDE STORES IN VILLAGES

Table 2.2 STANDARDS FOR COUNTRYSIDE STORES IN TOWNS/TOWNSHIPS

2.1.3 Rural Retailing Development Project: The Number of Outlets

Table 2.3 RURAL RETAILING PROJECT COUNTRYSIDE STORES IN VILLAGES, APRIL 2009

Table 2.4 RURAL RETAILING PROJECT COUNTRYSIDE STORES IN TOWNS/TOWNSHIPS, APRIL 2009

Table 2.5 RURAL RETAILING PROJECT DISTRIBUTION CENTRES, APRIL 2009

2.1.4 Rural Retailing Development Project: The Participating Companies

Table 2.6 RURAL RETAIL DEVELOPMENT PROJECT TOTAL NUMBER OF PARTICIPATING COMPANIES, 2005-2008

Table 2.7 RURAL RETAIL DEVELOPMENT PROJECT COMPANY STRUCTURE, 2007

2.2 Linking the Chill Chain

2.3 Private Label

Table 2.8 CHINA TOP-100 RETAILER’S TOTAL SALES AND PRIVATE LABEL SALES COMPARED, 2005-2009*

2.4 Reducing Cost Through the Green Approach

Table 2.9 SUPERMARKET COST STRUCTURE, 2007

Table 2.10 HYPERMARKET COST STRUCTURE, 2007

Table 2.11 LIANHUA SUPERMARKET HOLDINGS COST STRUCTURE, 2005-2008

2.5 Linking Farmers with Retailers

Table 2.12 NINE COMPANIES SELECTED FOR TRIAL TO LINK FARMERS WITH SUPERMARKETS

Table 2.13 REASONS FOR CONSTRUCTING AGRICULTURAL PRODUCE BASES, 2007

2.6 Foreign Retailers Moving to Smaller Cities

Table 2.14 INITIAL OUTLETS OF SELECTED HYPERMARKETS/CASH & CARRY CHAIN STORES

Table 2.15 DISTRIBUTION OF OUTLETS OF SELECTED FOREIGN HYPERMARKETS/CASH & CARRY OPERATORS BY REGION, 2008

Table 2.16 NUMBER OF OUTLETS OF SELECTED FOREIGN HYPERMARKETS/CASH & CARRY OPERATORS IN CHINA, 2008

Table 2.17 CONCENTRATION OF SELECTED FOREIGN HYPERMARKETS/CASH & CARRY OPERATORS, 2008

Table 2.18 LOCATION OF SELECTED FOREIGN HYPERMARKETS/CASH & CARRY OUTLETS IN EAST CHINA, 2008

Table 2.19 LOCATION OF SELECTED FOREIGN HYPERMARKETS/CASH & CARRY OPERATORS’ OUTLETS IN NORTH CHINA, 2008

Table 2.20 LOCATION OF SELECTED FOREIGN HYPERMARKETS/CASH & CARRY OPERATORS’ OUTLETS IN CENTRAL CHINA, 2008

Table 2.21 LOCATION OF SELECTED FOREIGN HYPERMARKETS/CASH & CARRY OUTLETS IN NORTHWEST/WEST CHINA, 2008

Table 2.22 LOCATION OF SELECTED FOREIGN HYPERMARKETS/CASH & CARRY OPERATORS’ OUTLETS IN NORTHEAST CHINA, 2008

Table 2.23 LOCATION OF SELECTED FOREIGN HYPERMARKETS/CASH & CARRY OPERATORS’ OUTLETS IN SOUTHWEST CHINA, 2008

Table 2.24 LOCATION OF SELECTED FOREIGN HYPERMARKETS/CASH & CARRY OPERATORS’ OUTLETS IN SOUTH CHINA, 2008

2.7 Hypermarkets Gaining Popularity

Table 2.25 SHARE OF GROCERY EXPENDITURE BY TRADE FORMAT, 2001, 2004 & 2007

Table 2.26 CONSUMER PREFERENCE FOR FRESH FOOD BY STORE FORMAT, 2005 & 2007

Table 2.27 CONSUMER PREFERENCE FOR FOOD KEPT UNDER NORMAL TEMPERATURE BY STORE FORMAT, 2005 & 2007

Table 2.28 CONSUMER PREFERENCE FOR CHILLED FOOD BY STORE FORMAT, 2005 & 2007

3 MARKETING & DISTRIBUTION

3.1 Marketing & Advertising

3.1.1 Marketing & Advertising: Trends

Conventional Media Advertising

Table 3.1 ADVERTISING EXPENDITURE IN CHINA, 2004-2008

Online Advertising

Table 3.2 ONLINE ADVERTISING EXPENDITURE IN CHINA, 2004-2008

3.1.2 Marketing & Advertising: Leading Advertised Product Categories

Table 3.3 TOP 10 ADVERTISING CATEGORIES IN CHINA, 2007

3.1.3 Marketing & Advertising: Leading Advertised Brands

Table 3.4 TOP 10 ADVERTISED BRANDS IN CHINA, 2007-2008

3.1.4 Marketing & Advertising: Leading Advertisers

Table 3.5 CHINA’S TOP TEN ADVERTISERS, 2004-2006

Table 3.6 CHINA’S TOP TEN ADVERTISERS, 2006-2007

3.1.5 Marketing & Advertising: The Prime-time Advertising Auction

Table 3.7 PRIME-TIME ADVERTISING AUCTION ON CHINA’S CCTV, 2000-2009

3.1.6 Marketing & Advertising: Brand Preferences Choice Factors in China

Age & Location

Table 3.8 BRAND PREFERENCES IN TERMS OF AGE GROUPS & LOCATIONS IN CHINA, 2007

Quality Versus Image

Table 3.9 FACTORS DETERMINING BRAND CHOICES IN CHINA, 2007

Local Versus Foreign

Table 3.10 BRAND PREFERENCES IN CHINA, 2007

“Chameleon” Brands

Table 3.11 TOP CHAMELEON BRANDS IN CHINA, 2008

3.1.7 Marketing and Advertising in China: Brand Equity

3.1.8 Marketing & Advertising: Emerging Local Brands

Table 3.12 CHINA’S MOST VALUABLE BRANDS, 2007/2008

Table 3.13 TOP 250 GLOBAL RETAILERS, FISCAL 2007

3.1.9 Marketing & Advertising: Pricing Issues

Table 3.14 CONSUMERS WHO TRADE UP OR DOWN BY INCOME SEGMENTS, 2007

Table 3.15 CONSUMERS WHO TRADE UP OR DOWN BY CATEGORIES, 2007

3.1.10 Marketing & Advertising: Online Sales

Table 3.16 PER CAPITA ONLINE SHOPPING VALUE, 2003-2008

Table 3.17 SITES PREFERRED BY ONLINE SHOPPERS, 2008

Table 3.18 TOP 10 RETAIL ITEMS ON TAOBAO.COM, 2008

Table 3.19 TOP ONLINE SHOPPING TRANSACTION BY REGION, 2007

Table 3.20 TOP REASONS FOR NOT SHOPPING ONLINE, 2007

3.2 Consumers

3.2.1 Consumer Profile: Broad Consumer Trends

3.2.2 The Chinese Consumer: Urban Profile

Table 3.21 URBAN HOUSEHOLD OWNERSHIP OF MAJOR DURABLE CONSUMER GOODS, 2001-2007

3.2.3 The Chinese Consumer: Rural Profile

Table 3.22 RURAL HOUSEHOLD OWNERSHIP OF MAJOR DURABLE CONSUMER GOODS, 2001-2007

3.3 Key Sales Periods

3.3.1 Key Sales Periods: Overview

Table 3.23 ANNUAL NATIONAL HOLIDAYS

Table 3.24 MAJOR HOLIDAY RETAIL SALES, 2005-2009

4 COMPANY PROFILES

4.1 Auchan (China) Investment Co., Ltd.

4.1.1 Auchan (China) Investment: Company Details

4.1.2 Auchan (China) Investment: Company Background

Table 4.1 AUCHAN (CHINA) INVESTMENT: NUMBER OF OUTLETS IN CHINA, 2002-2008

Table 4.2 AUCHAN (CHINA) INVESTMENT: OUTLETS BY LOCATION, 2008

4.1.3. Auchan (China) Investment: Company Results

Table 4.3 AUCHAN (CHINA) INVESTMENT: FINANCIAL RESULTS, 2005-2008

4.2 Beijing Jingkelong Co., Ltd.

4.2.1 Beijing Jingkelong: Company Details

4.2.2 Beijing Jingkelong: Company Background

Table 4.4 BEIJING JINGKELONG: NUMBER OF OUTLETS BY RETAIL FORMAT, 2003-2008

Table 4.5 BEIJING JINGKELONG: NUMBER OF OUTLETS, 2003-2008

Table 4.6 BEIJING JINGKELONG: NET OPERATING AREA, 2006-2008

Table 4.7 BEIJING JINGKELONG: REVENUE BREAKDOWN & GROSS PROFIT MARGIN OF DIRECTLY-OPERATED OUTLETS, 2005-2008

Table 4.8 BEIJING JINGKELONG: REVENUE BREAKDOWN & GROSS PROFIT MARGIN OF WHOLESALE BUSINESS, 2005-2008

Table 4.9 BEIJING JINGKELONG: SAME-STORE SALES GROWTH, 2005-2008

4.2.3 Beijing Jingkelong: Company Results

Table 4.10 BEIJING JINGKELONG: FINANCIAL RESULTS, 2004-2008*

4.3 Carrefour S.A.

4.3.1 Carrefour: Company Details

4.3.2 Carrefour: China-based Activities

Table 4.11 CARREFOUR: STORES & SALES AREA IN CHINA, ASIA & ENTIRE GROUP, 1995-2008

Table 4.12 CARREFOUR: LOCATION OF HYPERMARKETS IN CHINA, 2008

Table 4.13 CARREFOUR: DIA STORES IN CHINA, 2009*

4.3.3 Carrefour: Company Results

Table 4.14 CARREFOUR: FINANCIAL RESULTS, 2006-2008*

Table 4.15 CARREFOUR: CHINA QUARTERLY SALES & LIKE-FOR-LIKE SALES, 2006-1Q2009*

4.4 Chia Tai Enterprises International Ltd.

4.4.1 Chia Tai Enterprises International: Company Details

4.4.2 Chia Tai Enterprises International: Company Background

Table 4.16 CHIA TAI ENTERPRISES INTERNATIONAL: NUMBER OF OUTLETS, 2003-2008

Table 4.17 LOTUS: CHINA OUTLETS BY LOCATION, 2008

Table 4.18 LOTUS: LOCATION OF STORES BY GEOGRAPHICAL REGION, 2008

4.4.3 Chia Tai Enterprises International: Company Results

Table 4.19 CHIA TAI ENTERPRISES INTERNATIONAL: FINANCIAL RESULTS, 2004-2008*

Table 4.20 CHIA TAI ENTERPRISES INTERNATIONAL: SAME-STORE SALES GROWTH, 2007-2008

4.5 China Resources Enterprise Ltd.

4.5.1 China Resources Enterprise: Company Details

4.5.2 China Resources Enterprise: Company Background

Table 4.21 CHINA RESOURCES ENTERPRISE: PRINCIPAL RETAIL SUBSIDIARIES & ASSOCIATES IN CHINA, END-2008

Table 4.22 CHINA RESOURCES ENTERPRISE: TURNOVER OF SUPERMARKET BUSINESS BY GEOGRAPHICAL REGION, 2004-2008

Table 4.23 CHINA RESOURCES ENTERPRISE: TURNOVER BREAKDOWN BY STORE FORMAT FOR SUPERMARKET BUSINESS, 2008

Table 4.24 CHINA RESOURCES ENTERPRISE: BREAKDOWN OF CR VANGUARD & SUGUO STORES IN CHINA BY STORE FORMAT, 2004-2008

Table 4.25 CHINA RESOURCES ENTERPRISE: BREAKDOWN OF CR VANGUARD & SUGUO STORES IN CHINA BY STORE MANAGEMENT (FRANCHISED/SELF-OPERATED), 2004-2008

Table 4.26 CHINA RESOURCES ENTERPRISE: NUMBER OF SUGUO, CR VANGUARD STORES, 2004-2008

Table 4.27 CHINA RESOURCES ENTERPRISE: CR VANGUARD STORES IN CHINA, 2006-2008

Table 4.28 CHINA RESOURCES ENTERPRISE: CR VANGUARD STORES BY GEOGRAPHICAL LOCATION & OWNERSHIP IN CHINA

Table 4.29 CHINA RESOURCES ENTERPRISE: CR VANGUARD STORES BY GEOGRAPHICAL LOCATION IN CHINA, 2006-2008

Table 4.30 CHINA RESOURCES ENTERPRISE: SUGUO STORES IN CHINA, 2004-2008

Table 4.31 CHINA RESOURCES ENTERPRISE: SUGUO STORES BY GEOGRAPHICAL LOCATION IN CHINA, 2004-2008

Table 4.32 CHINA RESOURCES ENTERPRISE: SAME-STORE SALES GROWTH OF SUPERMARKET BUSINESS, 2003-2008

4.5.3 China Resources Enterprise: Company Results

Table 4.33 CHINA RESOURCES ENTERPRISE: FINANCIAL RESULTS OF SUPERMARKET BUSINESS, 2004-2008*

4.6 E-Mart China

4.6.1 E-Mart China: Company Details

4.6.2 E-Mart China: Company Background

Table 4.34 E-MART CHINA: NUMBER OF OUTLETS, 2001-2008

Table 4.35 E-MART CHINA: BREAKDOWN OF OUTLETS, 2008

Table 4.36 E-MART CHINA: LOCATION OF OUTLETS, APRIL 2009

4.6.3 E-Mart China: Company Results

Table 4.37 E-MART CHINA: FINANCIAL RESULTS, 2007-2008

4.7 Lianhua Supermarket Holdings Co., Ltd.

4.7.1 Lianhua Supermarket Holdings: Company Details

4.7.2 Lianhua Supermarket Holdings: Company Background

Table 4.38 LIANHUA SUPERMARKET HOLDINGS: NUMBER OF STORES, 2000-2008

Table 4.39 LIANHUA SUPERMARKET HOLDINGS: NUMBER OF STORES BY PROVINCE, 2002 & 2007

Table 4.40 LIANHUA SUPERMARKET HOLDINGS: NUMBER OF STORES BY PROVINCE, 2008

Table 4.41 LIANHUA SUPERMARKET HOLDINGS: REVENUE BREAKDOWN BY SEGMENT, 2003-2008

Table 4.42 LIANHUA SUPERMARKET HOLDINGS: GROSS & OPERATING PROFIT MARGINS, 2003-2008

Table 4.43 LIANHUA SUPERMARKET HOLDINGS: SAME-STORE SALES GROWTH, 2007-2008

4.7.3 Lianhua Supermarket Holdings: Company Results

Table 4.44 LIANHUA SUPERMARKET HOLDINGS: FINANCIAL RESULTS, 2004-2008*

4.8 Lotte Mart

4.8.1 Lotte Mart: Company Details

4.8.2 Lotte Mart: China-based Activities

Table 4.45 LOTTE MART: NUMBER OF OUTLETS, 2007-2008

Table 4.46 LOTTE MART: BREAKDOWN OF STORES IN CHINA, MARCH 2009

4.9 Mega Mart

4.9.1 Mega Mart: Company Details

4.9.2 Mega Mart: China-based Activities

Table 4.47 MEGA MART: NUMBER OF OUTLETS IN CHINA, 2001-2008

Table 4.48 MEGA MART: NUMBER OF OUTLETS IN CHINA, 2008

4.10 Metro Jinjiang Cash & Carry Co., Ltd.

4.10.1 Metro Jinjiang Cash & Carry: Company Details

4.10.2 Metro Jinjiang Cash & Carry: Company Background

Table 4.49 METRO JINJIANG CASH & CARRY: NUMBER OF OUTLETS, 1996-2008

Table 4.50 METRO JINJIANG CASH & CARRY: BREAKDOWN OF OUTLETS, 2008

4.10.3 Metro Jinjiang Cash & Carry: Company Results

Table 4.51 METRO JINJIANG CASH & CARRY: FINANCIAL RESULTS, 2003-2008

4.11 Nong Gong Shang Supermarket (Group) Co., Ltd.

4.11.1 Nong Gong Shang Supermarket (Group): Company Details

4.11.2 Nong Gong Shang Supermarket (Group): Company Background

Table 4.52 NONG GONG SHANG SUPERMARKET (GROUP): NUMBER OF OUTLETS, 2003-2008

Table 4.53 NONG GONG SHANG SUPERMARKET (GROUP): FINANCIAL RESULTS OF KEDI, 2002-2007

4.11.3 Nong Gong Shang Supermarket (Group): Company Results

Table 4.54 NONG GONG SHANG SUPERMARKET (GROUP): FINANCIAL RESULTS, 2003-2008

4.12 RT-Mart China

4.12.1 RT-Mart China: Company Details

4.12.2 RT-Mart China: Company Background

Table 4.56 RT-MART CHINA: OUTLETS BY LOCATION, 2008

Table 4.55 RT-MART CHINA: NUMBER OF OUTLETS IN CHINA, 2005-2008

4.12.3 RT-Mart China: Company Results

Table 4.57 RT-MART CHINA: FINANCIAL RESULTS, 2005-2008

4.13 Shenzhen A-Best Supermarket Co., Ltd.

4.13.1 Shenzhen A-Best Supermarket: Company Details

4.13.2 Shenzhen A-Best Supermarket: Company Background

Table 4.58 SHENZHEN A-BEST SUPERMARKET: OUTLETS, 2003-2008

4.13.3 Shenzhen A-Best Supermarket: Company Results

Table 4.59 SHENZHEN A-BEST SUPERMARKET: FINANCIAL RESULTS, 2003-2008*

4.14 Tesco PLC

4.14.1 Tesco: Company Details

4.14.2 Tesco: China-based Activities

Table 4.60 TESCO: HYPERMARKET OUTLETS IN CHINA BY LOCATION, 2008

Table 4.61 TESCO: STORE COUNT & STORE SPACE IN CHINA, 2004/05-2009/10*

Table 4.62 TESCO: LOCATION OF EXPRESS STORE OUTLETS IN CHINA, APRIL 2009

Table 4.63 TESCO: CUSTOMERS PER WEEK/SALES PER WEEK AT CHINA OUTLETS, 2004 & 2008

Table 4.64 TESCO: SAME-STORE SALES GROWTH IN CHINA, 2006-2008/09*

4.14.3 Tesco: Company Results

Table 4.65 TESCO: FINANCIAL RESULTS FOR ASIA & CHINA, 2005/2006-2008/09*

4.15 Times Ltd.

4.15.1 Times: Company Details

4.15.2 Times: Company Background

Table 4.66 TIMES: NUMBER OF STORES, FEBRUARY 2009

Table 4.67 TIMES: NUMBER OF STORES, 2006-2008

Table 4.68 TIMES: REVENUE BREAKDOWN, 2006-2008

Table 4.69 TIMES: SAME-STORE SALES GROWTH, 2007-2008

4.15.3 Times: Company Results

Table 4.70 TIMES: FINANCIAL RESULTS, 2004-2008*

4.16 Trust-Mart Management Consulting Services (Shanghai) Co., Ltd.

4.16.1 Trust-Mart: Company Details

4.16.2 Trust-Mart: Company Background

Table 4.71 TRUST-MART: NUMBER OF OUTLETS IN CHINA, 2003-2008

Table 4.72 TRUST-MART: OUTLETS BY LOCATION, 2008

Table 4.73 TRUST-MART: SAME-STORE SALES GROWTH, FISCAL 2009*

4.16.3 Trust-Mart: Company Results

Table 4.74 TRUST-MART: FINANCIAL RESULTS, 2003-2008

4.17 Wal-Mart (China) Investment Co., Ltd.

4.17.1 Wal-Mart (China) Investment: Company Details

4.17.2 Wal-Mart (China) Investment: China-based Activities

Table 4.75 WAL-MART STORES: NUMBER OF WAL-MART STORES GLOBALLY AND TRUST-MART STORES IN CHINA, FISCAL 1997-2009*

Table 4.76 WAL-MART (CHINA) INVESTMENT: SUPERSTORES BY LOCATION, 2008

Table 4.77 WAL-MART (CHINA) INVESTMENT: SUPERSTORES BY LOCATION, 2008

Table 4.78 WAL-MART (CHINA) INVESTMENT: SAME-STORE SALES GROWTH, FISCAL 2009*

4.17.3 Wal-Mart (China) Investment: Company Results

Table 4.79 WAL-MART (CHINA) INVESTMENT: FINANCIAL RESULTS, 2003-2008

4.18 Wumart Stores Inc.

4.18.1 Wumart Stores: Company Details

4.18.2 Wumart Stores: Company Background

Table 4.80 WUMART STORES: NUMBER OF OUTLETS BY RETAIL FORMAT, 2004-2005

Table 4.81 WUMART STORES: NUMBER OF OUTLETS BY RETAIL FORMAT, 2005-2008

Table 4.82 WUMART STORES: SHARE CAPITAL, 2008

Table 4.83 WUMART STORES: ASSOCIATE COMPANIES, 2008

Table 4.84 WUMART STORES: SUBSIDIARIES, 2008

Table 4.85 WUMART STORES: SAME-STORE SALES GROWTH, 2004-2008

4.18.3 Wumart Stores: Company Results

Table 4.86 WUMART STORES: FINANCIAL RESULTS, 2004-2008*

5 CONTACTS

5.1 Trade Organisations

9.1.1 China Chain Store & Franchise Association (CCFA)

5.2 Government Departments

9.2.1 Ministry of Commerce (MOFCOM)

9.2.2 Ministry of Finance

APPENDIX: MARKET BACKGROUND

A.1 Fast Facts

A.2 Regions of China

Map A.1 CHINA: PROVINCES AND MUNICIPALITIES

A.3 Demographics

A.3.1 Demographics: Total Population

Table A.1 TOTAL POPULATION, 2002-2008

A.3.2 Demographics: Population by Location

Table A.2 POPULATION BY URBAN-RURAL DIVIDE, 2002-2008

Table A.3 POPULATION % BREAKDOWN BY URBAN-RURAL DIVIDE, 2002-2008

A.3.3 Demographics: Population by Province

Table A.4 POPULATION BY PROVINCE, 2002-2008

A.3.4 Demographics: Population Density by Province

Table A.5 POPULATION DENSITY BY PROVINCE, 2005-2008

A.3.5 Demographics: Population Concentration

Map A.2 POPULATION CONCENTRATIONS BY PROVINCE, 2008

A.3.6 Demographics: Population by Gender

Table A.6 TOTAL POPULATION BY GENDER & % BREAKDOWN, 2002-2008

A.3.7 Demographics: Population by Age Group

Table A.7 POPULATION BY AGE GROUP, 2002-2008

Table A.8 % BREAKDOWN OF POPULATION BY AGE GROUP, 2002-2008

A.4 Consumer Attitudes

A.4.1 Consumer Attitudes: Overview

A.4.2 Consumer Attitudes: Response to Political Change

A.4.2 Consumer Attitudes: Response to Economic Change

A.4.3 Consumer Attitudes: Changes in Lifestyle

Livelihood

Individual loans

Housing

Possessions

Travel

Entertainment

Health and Fitness

Purchasing Influences

Taboos

A.5 Consumer Wealth

A.5.1 Consumer Wealth: GDP and Cost of Living

China’s New Middle Class

Table A.9 MIDDLE AND UPPER INCOME HOUSEHOLDS IN CHINA, 1995/2000/2005/2010/2015

Table A.10 TOTAL CONSUMPTION BY MIDDLE AND UPPER INCOME HOUSEHOLDS, 2005/2010/2015

Table A.11 CONSUMPTION BY MIDDLE AND UPPER INCOME HOUSEHOLDS & % OF TOTAL HOUSEHOLDS, 1995/2000/2005/2010/2015

Confident Shoppers

Table A.12 GDP AND COST OF LIVING INDEX, 2002-2008

A.5.2 Consumer Wealth: Provincial GDP

Table A.13 GDP BY PROVINCE, 2002-2008

A.5.3 Consumer Wealth: GDP Growth by Province

Table A.14 GDP GROWTH BY PROVINCE, 2002-2008

A.5.4 Consumer Wealth: GDP Per Capita by Province

Table A.15 PER CAPITA GDP BY PROVINCE, 2002-2008

A.5.5 Consumer Wealth: Concentration of Wealth by Province

Map A.3 VALUE OF GDP PER CAPITA BY PROVINCE, 2008

A.5.6 Consumer Wealth: The Major Cities

Table A.16 LEADING CITIES KEY ECONOMIC INDICATORS, 2007

A.6 Households

A.6.1 Households: Overview of Household Conditions

A.6.2 Households: Total Households by Size

Table A.17 NUMBER OF HOUSEHOLDS BY SIZE, 2002-2008

A.6.3 Households: Total households by Urban/Rural Split

Table A.18 NUMBER AND SIZE OF HOUSEHOLDS BY LOCATION, 2002-2008

A.6.4 Households: Income Earners Per Household

Table A.19 AVERAGE NUMBER OF INCOME EARNERS PER HOUSEHOLD, 2002-2008

A.7 Employment

A.7.1 Employment: Number of Workers by Sector

Table A.20 NATIONAL EMPLOYMENT BY SECTOR, 2002-2008

A.7.2 Employment: Growth by Sector

Table A.21 GROWTH IN EMPLOYMENT BY SECTOR, 2002-2008

A.7.3 Employment: Number of Workers by Gender

Table A.22 TOTAL NATIONAL WORKFORCE BY GENDER, 2002-2008

A.7.3 Employment: Number of Workers by Habitation

Table A.23 NATIONAL WORKFORCE BY HABITATION, 2002-2008

A.7.4 Employment: Urban Unemployment

Table A.24 URBAN UNEMPLOYMENT RATES, 2002-2008

A.8 Consumer Income

A.8.1 Consumer Income: Average Incomes by Sector

Table A.25 AVERAGE INCOMES BY SECTOR, 2001-2007

A.8.2 Consumer Income: Growth by Sector

Table A.26 GROWTH IN AVERAGE INCOMES BY SECTOR, 2001-2007

A.8.3 Consumer Income: Average Incomes by Region

Table A.27 AVERAGE INCOMES BY REGION, 2001-2007

A.8.4 Consumer Income: Growth by Region

Table A.28 GROWTH IN AVERAGE INCOMES BY REGION, 2001-2007

A.9 Consumer Market

A.9.1 Consumer Market: Spending Trends

Table A.29 CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES, 2002-2008*

A.9.2 Consumer Market: Per Capita Consumer Expenditure

Table A.30 PER CAPITA CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES, 2002-2008*

A.9.3 Consumer Market: Retail Sales and Consumer Spending

Table A.31 RETAIL SALES AS A PROPORTION OF CONSUMER EXPENDITURE*, 2002-2008

A.9.4 Consumer Market: Urban Income and Spending Compared

Table A.32 URBAN & RURAL AVERAGE ANNUAL INCOME/EXPENDITURE, 2002-2008

A.10 Exchange Rates

A.10.1 Exchange Rates: China

Table A.33 AVERAGE ANNUAL RENMINBI EXCHANGE RATES AGAINST A VARIETY OF CURRENCIES, 2001-2008

A.10.2 Exchange Rates: Hong Kong

Table A.34 AVERAGE ANNUAL HONG KONG DOLLAR EXCHANGE RATES AGAINST THE UNITED STATES DOLLAR AND RENMINBI, 2001-2008

Abstract

This report covers the supermarket and hypermarket retailing industry in the People’s Republic of China, including breakdown of market by store size.

Based upon our recalculations of retail sales, and based upon the growth in individual retail sectors as well as more recent macro-economic re-evaluations, Access Asia estimates that between 1999 and 2008, China’s total retail market grew 280.94% in current terms to RMB8.50trn - representing a compound annual growth rate (CAGR) of 16.02% over that period.

China’s supermarket industry continues to develop rapidly. New chain store networks are emerging outside the top three cities of Beijing, Guangzhou and Shanghai as retailers extend their reach into many second- and third-tier cities. There is beginning to be aggressive consolidation in the market, as larger operators swallow up smaller players.

Foreign supermarket and hypermarket chains, such as Carrefour, have already entered the market, but room for expansion in the tier-one cities is now limited. Much more attention is now being focused, by both foreign and domestic chains, on outlying suburbs, as well as provincial new towns and cities and now even rural areas. However, growth is hampered by bottlenecks and underdevelopment in the distribution infrastructure.

Also, although consumer incomes and spending have grown significantly, average purchases are still very small, and margins remain tight making growth investment difficult without outside investment.

China’s total supermarket industry, based upon our own estimates themselves based largely on company and China Chain Store and Franchise Association data, comprised about 45,587 stores in 2008, with total retail sales valued at RMB710.47bn, this representing about 12.2% of the total value of the retail market in China in 2008.

This recently updated report includes:

• The total, regional and sector value for retail sales, including urban/rural and food/non-food splits, up to the end of 2008;
• Statistical data on leading retailer market shares by sales in China up to 2008;
• Market data for each key provincial and urban region, in terms both of volume retail trade and the value of the local economy, up to 2008;
• Value forecast retail market, up to 2013;
• Key current issues , and discursive analysis of the key factors affecting the market;
• The domestic industry examined by key statistical indicators, including number of outlets and turnover, by sector and by key city;
• SWOT analysis
• Profiles of the leading supermarket companies active in China, with financial data up to 2008 in most cases.
• Overview of China’s demographics and macroeconomics.

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