For much of the past decade, China has offered retailers and consumer goods companies opportunities for unbridled growth and long-term potential. The last two years (and especially the past six months) however, have changed all this as many businesses have seen low-single-digit growth and negative like-for-likes.
While this research, including proprietary consumer research across Tier 1 to 3 cities, paints a dark future for some business models, we must remember that China as a whole is still a great opportunity. Even with a slower pace of spending growth in the “new normal”, China is still growing far quicker than most other world markets. Accessing all of this growth however is the challenge; businesses must adapt to the changing environment and be willing to invest to perform well online.
