Retailers face double threat in China’s top tier cities
Dec 21, 2013
While China’s retail market continues to expand, retailers are at risk of being squeezed in top tier cities by market saturation and e-commerce.
First- and second-tier cities are facing market saturation of luxury goods, say two researchers at Fitch Ratings via the Shanghai Times. Deceleration in same-store sales growth is being attributed to the government crackdown, weaker economic growth, and the rise of online shopping.
Some department stores in Beijing and Shanghai experienced contraction in same-store sales in 2012 and the first half of 2013, said Michelle Leong based in Hong Kong and Jeong Min Pak based in South Korea in a joint statement. Retailers have gone to extreme measures in some instances to protect their market shares.
Source Red Luxury