Chinese Retail Views
Wal-Mart ( WMT ), which competes with other retailers like Costco ( COST ), Target ( TGT ) and Amazon ( AMZN ), has been strategically expanding into China since opening its first Supercenter and Sam's Club in 1996. The rising purchasing power of Chinese consumers and improving economy bodes well for retail sales growth.
Although Wal-Mart has traditionally expanded into China by opening stores and joint ventures, a more recent move indicates that it may be interested in capturing e-commerce sales as well.g Chinese e-commerce consumer electronics seller 360buy.com has stated that Wal-Mart, along with a few other investors, has contributed a combined total of $500 million to support 360buy.com's fast growing online retail business.
China, however, is a retail market on the rise. In 2007 China posted 17% growth in retail spending. Electronics retailers Guomei and Suning posted record numbers, and both paint positive pictures for the future as Chinese consumers continue to buy LCD TVs from LG Electronics and mobile phones from Nokia (NOK).
China's retail environment has undergone sweeping changes in the last few years, both because more and more stores and brands like Home Depot (HD) and Toys 'R' Us are entering China's retail environment, and because Chinese youth have different expectations in the shopping experience than older generations.
Chinese Retail Images
