The total retail sales of consumer goods have been keeping growing in recent years. According to the statistics of Ministry of Commerce, the total retail sales of social consumer goods in China achieved RMB 699.8 billion in Oct 2006, increased by 14.3% over the same period of 2005. It is estimated that the total retail sales of consumer goods would reach RMB 7.6 billion in the year of 2006, up by 13.5% year-on-year, recording the top since a decade.

Total Retail Sales of Consumer Goods (Wholesale & Retail Industry) and Growth in China, 1997-Oct 2006

China retail industry is expected to maintain its overall growth at about 10% plus in the year of 2007, and even more, parts of leading enterprises will keep growing at above the average rate. Besides, as the foreign-owned retailers accelerate their expansions via merger & acquisition, the competition for promising business regions will become more rampant and the industrial concentration will also be gradually improved by integration and reorganization.

2 Prospect of China retail industry
2.1 Huge market potential
2.2 Highly market competition pattern under low concentration
2.3 Chain-store operation and retail form integration become the main trend
2.4 M & A will be the key forms for enterprises' expansion
2.5 Driving factors from inside and outside promote the performance

3 Investment strategies of China retail industry
3.1 Department store
3.2 Home appliance chains
3.3 Chain supermarkets

4 Major enterprises
4.1 Wuhan Zhongbai Group Co., Ltd
4.2 Gome Electrical Appliances Holding Limited 
4.3 Suning Appliance Chain Store (Group) Co., Ltd
4.4 Beijing Wangfujing Department Store (Group) Co., Ltd
4.5 Chongqing Department Store Co., Ltd
4.6 Beijing Urban-Rural Trade Center Co., Ltd
4.7 Shandong Silver Plaza Co., Ltd
4.8 Guangzhou Friendship Co., Ltd
4.9 Shanghai Balian Group Co., Ltd
4.10 Wumart Stores, Inc.
4.11 Lianhua Supermarket Holdings Co., Ltd

5 Conclusions