China has become the global retail industry to new heights

At a recent "2010 global commercial real estate Conference", CB Richard Ellis announced the report shows that China has become the global retail industry new heights, China's major cities in the retail market will remain strong in the medium term.

CB Richard Ellis China Research Department Director, MA Xue-Ming China's major cities retail market, foreseeable 2010 for the first half of 2011, will render a robust development trends.

China's GDP for the past 10 years the average annual 9.9% compound annual growth rate. Sustained economic growth and the unbroken urbanization is promoting the Chinese in the global wealth State rankings. According to Switzerland a recent credit report, so far, China's total wealth has been ranking third, 20% of the total amount of lag behind Japan, but ranked fourth of France's leading approximately 35%.

Chinese consumers growing purchasing power to promote the rapid development of domestic retail and triggered the consumption patterns of change. Chinese consumers now began to pursue a more diversified, including leisure shopping experience, the luxury market in the last 6 years has grown rapidly. The proportion of food consumption from 1995 of 50% to 38% in 2008 will further confirm this trend.

These strong Chinese economy and market fundamentals which gave sufficient reasons for global retailers to enter the retail market in China. Over the past 20 years in various global large retailers continue to enter China, but as China's second and third line cities retail environments matured, retailers will no longer be business scope limited to the eastern coastal city, but began gradually to inland and Western urban expansion.

Prior to this there are media reports, it is estimated that by the year 2014, the Chinese luxury market will be as high as $ 146 billion, and played an important role in the world. Ma Xue-Ming confirmed that a growing number of international luxury brands in China's coastal cities to push inland. CB Richard Ellis ' data indicate that, at present, 50% of international retailer brands businessmen have entered China, its number in the global ranking fifth in the country.

However, according to CB Richard Ellis is the latest research data indicate that, although the overseas and domestic retailers expanding the demand remains strong, the tracking of parts of the second-tier cities over the past 9 months appear in varying degrees in the fluctuations in the rent. Due to the short-term supply peak on the market rent level to impose pressure on the part of the second downlink and third line cities is currently experiencing the excess supply of labor pains.

CB Richard Ellis argued that, since these second-tier cities must be mainstream retail stores from the traditional to the modern shopping center for restructuring to meet retailers and consumers of the latest needs, pain is inevitable. As the supply peak of dissipating and quality upgrading through retail properties, a major city in China's retail market performance will remain robust in the medium to long term. （23D3）