The New Trend Of China'S Retail Market Is Mainly Reflected In Four Areas.

The latest research report of PWC (PwC), an international accounting firm, shows that China's retail and consumer goods industry is experiencing an amazing change with an annual growth rate of 7.5%, and the market will reach RMB 43 trillion yuan (880 million Australian dollars) by 2020.

The speed and complexity of the changes made some businessmen unprepared, and the reasons for this change were mainly 3:

1. China's economic growth is slowing, and Chinese consumers are more concerned when buying goods.

Value and practicability;

2. more and more young consumers pay more attention to the life experience, convenience and healthier lifestyles brought by products.

3. technology affects and changes product information search, commodity production, and entry.

And the way it was sold.

It is reported that the trend of online consumption is one of the highlights of PWC's current report. Young Chinese consumers like to use mobile phones.

By comparing prices on different online stores, then shopping on the Internet.

Paul Zahra, a former chief executive of David Jones, an Australian Department store, and Paul Zahra, who is currently working in PwC, commented that the Australian retail industry has been inspired and followed by the US and UK market, but PWC's analysis shows that Chinese consumers are leading the trend in digital shopping, and social media play an important role in shopping decisions.

It is reported that the new trend of China's retail market is mainly reflected in four areas:

Luxury goods: the sale of luxury accessories is mainly due to the following factors: China's economic slowdown; the Chinese government's anti-corruption policy; and the increasing number of Chinese consumers choosing to go abroad to spend.

In this regard, PwC suggests that luxury manufacturers should reinvent their strategies, including expanding online sales and creating luxury goods that the public can afford.

Footwear: although sales of luxury goods have declined, sales of shoes and clothing products are rebounding in the economic headwinds.

There are more and more "fast fashion" and "high-end" products on the market, and the upsurge of sports products and leisure brands continues. All these bring new business opportunities to the industry.

Beauty protection: Sales of beauty care products are active in the Chinese market.

Young consumers attach importance to personal image, and more and more beauty and environmental products will be listed, which will bring sales growth to the industry in the short term.

Household appliances: Sales of household appliances in the Chinese market have declined.

The main reasons include the following: the slowdown in economic growth, the sluggish sales in the real estate market, and the reduction of incentives for home appliances subsidies.

The report believes that new and innovative products, especially new and easy to operate "smart" products, may help increase sales in the industry.

How can businesses respond to disruptive changes in the industry? PWC, an international accounting firm (PwC), makes the following suggestions for changing the disruptive changes in the retail and consumer goods industry:

1. deepen "competitive cooperation": new competitors entering the market will challenge existing business models and explore win-win opportunities.

2. implementation of M&A for pformation: moving upstream to the value chain;

3. Trust: retailers' online sales are not just for sales performance and market share.

4. the value of data: in-depth analysis of data and rational use of information;

Strengthen corporate social responsibility (CSR): consumers are more concerned about product sources and corporate behavior. Retailers need to strengthen supply chain management to ensure product's environmental protection, which is in line with corporate responsibility standards, which requires a higher level of operation integration.

In fact, competition between Chinese and foreign brands and retailers is also changing.

Foreign brands and retailers continue to invest in the Chinese market, but they adopt a more innovative strategy.

For example, Home Depot, a global retailer for home furnishings, and Best Buy, a global retail group for home appliances and electronic products, has removed physical stores in the Chinese market, and more and more foreign retailers have chosen to set up online sales models to approach Chinese consumers.

In August 2015, Mecy and Messi Retailing Limited reached an agreement with Fung Retailing Limited to jointly launch online sales on the international shopping platform.

Costco, the largest chain member in the US, started selling online in Tmall in 2014, and there was no physical store.

Foreign brands also adopt online sales models in the Chinese market, such as fashion brands ASOS, Topshop, and Miss Selfridge..

Zahra believes that Australian retailers should understand that mobile phone shopping has become a trend and prepare for this.

Australian retailers have made a lot of efforts to promote products in the Chinese market in recent years, but still lag behind other retailers in terms of sales.

"Online sales is a new mode of concern," zhera said.

"Chinese consumers generally do not refer to advertising shopping, but listen to acquaintances' messages or suggest choosing products.

And many overseas Chinese consumers will also send information about local hot commodities to China. "

Zha Hera suggests that Australian retailers can use the reputation of Australian product safety and green to attract Chinese consumers.