China becomes global retail business

In a recent 2010 Global commercial Property Conference, the report released by CB Richard Ellis shows that China has become a new Highland for global retailing, and that the retail market in major cities in China will remain robust for the medium to long term. Masheming, director of the China Research Division of CB Richard Ellis, said China has become a new Highland for global retailing, as it is expected to be in the first half of 2010 to 2011, in a recent "Global Business real Estate conference in 2010".　　The retail market in China's major cities will remain robust in the medium to long term.　　Masheming, director of the China Research Division of CB Richard Ellis, said the retail market in major cities in China was active and could be expected to show robust trends from 2010 to the first half of 2011. China's GDP has achieved a 9.9% annual compound growth rate in the past 10 years. Sustained economic growth and uninterrupted urbanisation are driving China's ascent into the ranks of global wealth countries.　　According to a recent study by Credit Suisse, China's total household wealth has been ranked third in the world to date, with a total of about 20% per cent behind Japan, compared with about 35% of France's fourth-largest. The growing consumer power of Chinese consumers has driven the rapid growth of domestic retailing and triggered a shift in consumption patterns. Chinese consumers are now pursuing a more diversified shopping experience, including leisure, where the luxury market has grown rapidly over the past 6 years.　　This trend is further confirmed by the decrease in the proportion of food consumption from 50% in 1995 to 38% in 2008. These strong Chinese economic and market fundamentals give global retailers ample reason to enter the Chinese retail market.　　In the past 20 years, various major global retailers have entered China, and as China's second and third-tier cities retail environment matures, retailers no longer limit their business to the eastern coastal cities, but began to gradually expand inland and western cities. Previously, media reported that by 2014, China's luxury market will be as high as 14.6 billion U.S. dollars, playing a pivotal role in the world. Masheming confirmed that more and more international luxury brands are indeed moving inland from our coastal cities.　　At present, 50% of international retailer brands have entered China, the number of which ranks fifth in the world, says CB Richard Ellis. However, according to the latest data from CB Richard Ellis, the number of second-tier cities tracked in the past 9 months has seen varying levels of rent fluctuations, despite the still buoyant demand from the expanding overseas and domestic retailers.　　Some second-and third-tier cities are experiencing the throes of excess supply as short-term supply spikes put downward pressure on market rents. As the second-tier cities have to transform their mainstream retail models from traditional department stores to modern shopping malls to meet the latest demand from retailers and consumers, the pain is unavoidable, CB Richard Ellis believes. As the supply peaksGradual retreat and upgrading of quality retail properties, the retail market performance of major cities in China will remain robust in the medium to long term.