The Number Of Retailers Entering Second Tier Cities In China Is Steadily Increasing.

Retail industry is expected to become a driving force for China's economic development. Retail rentals will continue to grow in most cities in China. Meanwhile, the survey also points out that the number of new retailers entering second tier cities in China is steadily increasing. This is the latest survey released by CB Richard Ellis.

Despite the slowdown in the growth of consumer goods in 2012, the growth in income and retail sales remained double-digit. Chen Hongfei, director of the research department of North China, said: "China's retail industry is on the rebound and will become a driving force for China's economic development. In the next few years, the mature retail property market will benefit retailers and provide them with more choices. But retailers will face more intense competition from international brands and online stores, as well as rising operating pressures, including rent and labor costs.

According to the Beijing retail property market survey by CB Richard Ellis, the average rent of retail property in most cities in China is expected to grow steadily, due to the limited availability of high-quality retail lots. Take Beijing as an example, the property rents of Beijing's high quality retail market have shown steady growth since 2003. In the first quarter of 2013, after the quality retail property was removed from new projects, the rent rose by 2.6% compared to the same level, reaching 40.8 yuan per square meter per day. In the first quarter of 2013, the retail supply market in Beijing increased by 185000 square meters, with an intake of 201443 square meters, and the vacancy rate decreased by 0.5%.

The survey shows that the vacancy rate in the Chinese market will be further reduced in the future. Meanwhile, the number of new retailers in the second tier cities of China is steadily increasing. International retailers already stationed in Beijing, Guangzhou and Shanghai are currently taking the lead in Chengdu, Hangzhou and Wuhan. "The development of retail property market in major second tier cities is faster than that in relatively mature cities." Ms. Wang Jun, director of the Business Services Department of North China, said: "retail property located in the core area of Beijing and Shanghai is usually the first choice, while some of the first retailers in China are also looking at some cities in Western China, such as Chengdu and Chongqing. At the same time, international chain retailers are generally willing to choose retail property with mature operational experience or international business background.

"In recent years, the growth of the retail industry in the Asia Pacific region is impressive," said Mr. Sibson, executive director of the business services division of the world bank. Despite the uncertainty of global economic development, domestic and foreign chain retailers show positive investment intentions in China and Asia. He added: "in view of the young population in the region, the tendency to use modern technology to gain fashion information, and the purchasing power of the emerging middle class continue to increase, mid-range and modern fashion styles are becoming more and more popular. This means that in the Asia Pacific region, especially in China and in such an important market like Beijing, a more reasonable price will bring more opportunities for the brand. "