Multinational Retail Chains & the China Opportunity



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Introduction Contd..

One of the markets that has attracted several MNC retail chains is China. Though the average consumer spending per capita is low compared to more developed markets, the strong growth of over 10% per annum in consumer spending per head and the huge size of the market make China very attractive to the MNC retail chains.3.....

With the Chinese government opening up the retail industry in 1991 and introducing further reforms in the early 2000s, the attractiveness of the Chinese market has increased manifold....

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After being adjusted for inflation, this represented a growth of 14.8%.5 Not only was China one of the top retail markets by value, but it was also one of the top retail markets in terms of its ability to attract international retailers. As of early 2008, around 40% of the international retailers were present in China, earning it the ninth position among the top 10 retail markets in terms of ability to attract international retailers (Refer to Table I for the top 10 global retail markets)...

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