After the euphoria of the 2000’s, the Chinese market has changed. It is more mature, more competitive, more advanced than any other retail market in terms of omni-channel and mobile payment, and is imposing new rules for international retailers. During the Mapic conference in Shanghai in late August 2017, Global Retail News met manyinternational retailers who are keen to grow in China, the world’s second largest retail market by sales after the U.S.A. Many new ventures are starting with a “test & learn” expansion strategy. For instance, the Vapiano chain of Italian restaurants (120 international outlets) chose Shanghai to establish a first restaurant in China in 2015. This is on the quays along the Huangpu River in Pudong, with 680 sq.m on the ground floor and 200 sq.m of terrace. The firm is expanding step-by-step in this megacity of 25 million inhabitants. According to our sources, the Vapiano business recorded a turnover of €1.8 million in 2016 with an average ticket of €12.8 – higher than Pizza Hut – and about 2,650 visitors per week.
Can foreign retailers still succeed in China ?
Faced with China’s unbridled mall expansion and fierce growth of online sales, how do foreign retailers prioritise investments ? Live from Shanghai, Global Retail News investigated how retailers expand in the world’s 2nd largest retail market in 2017.
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