In this issue:
- An Overview of China’s Retail Industry
- Setting Up a Retail Store in China
- China’s Retail Talent Landscape
- Tips for Recruiting Retail Personnel in China
China is undergoing a major overhaul, transitioning from a global manufacturer to a service and consumption driven economy. While rising wages have driven up disposable income, urbanization and the growth and expansion of the middle class in third and fourth tier cities means more and more consumers are demanding a variety of quality products, translating into opportunities for foreign retailers. According to the Economic Intelligence Unit, China is expected to overtake the U.S. as the world’s largest retail market by 2016.
To succeed in the Chinese market, it is important for foreign retailers to fully understand China’s legal system, business environment, and culture. For example, there are certain limitations and restrictions in the Chinese legal and business environment that companies in the West do not commonly encounter and thus may be unable to anticipate. In this regard, it is important to work closely and consult with local professionals to ensure compliance.
Chinese culture encompasses tremendous variety, as reflected by its many dialects and regional cuisines. There is also a widening income gap in the country, meaning that different income groups are looking for vastly different products. Conducting thorough market research to understand one’s consumers and their demands is key, along with tailoring products to meet the needs of different audiences.
In this special edition of China Briefing, we provide an overview of the retail industry in China and the procedures for setting up a retail shop, focusing specifically on brick-and-mortar physical retail stores. Further, we have invited our partner Direct HR to offer some insights on the talent landscape in the retail industry, as well as tips for recruiting retail personnel in China.
We hope you will find this issue informative and helpful as you explore the many opportunities for setting up a retail business in China.