The Chinese grocery retailing market experienced current value growth of 8% in 2012, with retail value sales amounting to RMB3,806 billion.
Just last year, China became the world's largest market for grocery retail, surpassing the US. The Chinese grocery retailing market worth £607 billion by the end of the 2011, while the US market was valued at £527 billion for the same period, which means it ranks second.
China's grocery growth story is phenomenal. Between 2006 and 2015, the Chinese grocery market is forecast to triple in value and to be worth nearly a trillion pounds. This rapid expansion has been fuelled by three main factors: rapid economic growth, population and rising food inflation.
Despite its various logistical and bureaucratic challenges, China is a crucial growth market for many of the world's largest grocery retailers. Even beyond the major cities there are huge opportunities.
China Resources holds the lead in the extremely fragmented China grocery retailing market, with a value share of 3% in 2012, up slightly from 2011. Adopting a multi-format strategy, China Resources is present in hypermarkets, supermarkets and convenience stores.
The company also has a multi-brand strategy to cater to various consumer needs, for instance, Olé is a sub-brand for premium positioned supermarkets. The company has accelerated its growth by mergers and acquisitions.
In 2011, its acquisition of the Hongkelong hypermarket chain in Jiangxi gained the company a strong foothold in Jiangxi province, with immediate market penetration.
Grocery retailers are expected to maintain a healthy value growth over the coming years, driven mainly by the steady demand for grocery shopping and rising demand for better living standards among average consumers.
Furthermore, the central government's emphasis on domestic consumption to boost the economy is also expected to be a driving force for the robust growth in retailing, including grocery retailing, which is expected to represent over one third of total retailing value in 2017.
For more information on the Chinese grocery retailing market, see the latest research: Chinese Grocery Retailing Market
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