Chinese computer retail sector strong

Strong and growing demand from almost all sectors of the economy is leading a boom in Chinese computer retailing.

Market researcher IBISWorld said that over the five years to 2013, revenue of the industry has been growing at an annualised rate of 24.8 per cent to total US$89.4 billion.

Across China, the use of computers has been increasing in order to promote advancement and raise efficiency. As industry products are of great significance in the country’s macro-economic development and growth in various industry sectors, the Chinese government has introduced policies to guarantee the sound and healthy development of computer stores, such as restrictions on malicious industry competition, says IBISWorld. In addition, the entire retailing sector benefits from government investment and assistance.

The computer stores industry in China has a low concentration level, with the top four retailers – Gome, Suning, 360buy, and Jiangsu Hongtu High Technology – accounting for 26.1 per cent of total industry revenue. The industry is characterised by a large number of small-scale stores in third and fourth-tier cities, says IBISWorld.

Market share concentration is expected to increase gradually, as well-established enterprises set up more sales outlets and expand their distribution networks. Mergers and acquisitions will continue to occur with larger retailers acquiring smaller ones.

Furthermore, the rising penetration level of online shopping will increase market share among the largest e-commerce computer retailers, says IBISWorld.

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