As China's real GDP growth is expected to moderate from 7% in 2015 to 5.5% by 2019, retail sales will record slower growth in the forecast period. Nevertheless, compelling opportunities will continue to attract retailers to the market. Increasing household disposal income and wealth, progress in urbanisation and reform of the hukou (household-registration) system will help to boost consumption.
According to the China Chain Store & Franchise Association (CCFA), the increase in outlet numbers among the top 100 chains in 2013, at 6,600, was the lowest on record. Coupled with increasing operating cost and competition from e-commerce, the slower economic expansion will propel many traditional retailers to focus on profitability and a multi-channel strategy, rather than store openings.
We expect the share of the population aged 65 and above to rise to 12.8% in 2019 from 10.1% in 2014, which will lead to a higher proportion of consumer spending on healthcare. Meanwhile, China's post-i99os generation has started to enter the workforce and, in general, have higher income and save less than their parents. With around 185m young people aged 15 to 24 in 2014, they are seen as tech-savvy, willing to pay premium for quality and looking for individual style in products. Retailers that can tailor product offerings to the demand of the elderly and the young will likely gain in the long term.

Consumer goods and retail report 2

Overview 2

Retail 3

Food and drink 6

Non-food products 9

Industry publishing schedule 13

中国科学技术信息研究所