China's growing ability to attract global retailers is fueling its rise as the world's ninth most popular international retail market, a study released yesterday by a global property services provider has found.
China, the only nation from the Asia Pacific among the top 10 list, with 40 percent of surveyed international retailers present, has already outpaced traditional major territories such as the United States, Japan and Singapore, according to the CB Richard Ellis report which maps the global footprint of 250 of the world's top retailers.
Beyond China, only Singapore and Japan from the Asia Pacific region make the top 20, with 38 percent and 35 percent respectively of the 250 present.
The study ranks the United Kingdom as the global leader in relation to international retailer presence, with 55 percent of survey firms with a presence.
Spain's No. 2 position, closely trailing the UK, is an unexpected result which gives perspective to its new global significance, with 51 percent of surveyed retailers present.
France and Germany also performed strongly in the global ranking, achieving third and fourth positions, and emerging markets, including the United Arab Emirates, China and Russia, all figured in the top 10.
However, despite being the largest retail market in the world, the US surprisingly registered outside the top 10, at number 11, with 39 percent of international retailers present in that market.
The report attributes this to the maturity, size and strength of American domestic retailers, which makes it a market that only the strongest foreign retailers are able to conquer.
"This is the first time that the globalization of retail has been examined in this way, capturing real data about the expansion of international retailing," said Bryn Davies, executive director of CB Richard Ellis China. "One of the most exciting things to watch in the global retail landscape is the growth and influence of the BRIC (Brazil, Russia, India and China) emerging markets."
China is already a strong global performer and within the primary cities, such as Shanghai, Beijing, and Guangzhou, there is a significant concentration of wealth.
It is around these cities that much of the international retail activity is centered.
The report also found that luxury goods dominated international expansion, with almost 90 percent having a presence in more than 10 markets, followed by grocery, food and drink retailers with 60 percent present in 10 or more markets and the clothing, footwear and accessories retailers of which 54 percent were in more than 10 markets.
Department stores had the least international penetration, with only five percent represented in 10 or more markets.
(Shanghai Daily March 14, 2008)
