What is the status of the retail market in China in recent years?
The retail sector has been plagued by weakening demand and falling prices. Retail sales increased by about 10% in both 2000 and 2001 - a significant decline from the 21% average annual rate of growth from 1990 through 1997. Competition in the retail sector is intense, as the growth in supply outpaces demand, leading to a decline in prices. Retail prices fell 0.8% in 2001.
Although the retail market is still dominated by domestic brands, foreign brands have made significant inroads. Foreign brands are particularly popular with the younger generation of consumers.
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