China retail market to grow by $1.19 billion by 2028

It will be driven by e-commerce and omnichannel strategies

According to Technavio, the China retail market is expected to grow by $1.19 billion between 2024 and 2028, at a compound annual growth rate (CAGR) of 8.09%.

This growth will be driven by product premiumization and the widespread adoption of online and omni-channel sales methods.

The report said omnichannel retailing is gaining popularity in China as companies recognize its key role in increasing product visibility and customer engagement. This strategy integrates various distribution channels, such as retail stores, mobile apps and online platforms, which increases consumer interaction and sales.

E-commerce is also driving this growth, with major players such as JD.com, Alibaba and Walmart expanding their online offerings across the country.

Additionally, the availability of the Internet and the growth of online banking have reinforced this trend, making online channels a lucrative way for retailers to make money.

E-commerce sales are forecast to grow at a rapid rate of 25% per year.

However, the Chinese retail market faces challenges, especially in combating counterfeits, which account for an estimated 40% of goods sold, especially in the luxury sector.

“These imitations, often offered at prices below the original products, pose a threat to both the market share and brand reputation of leading global brands,” the report said.

“In particular, counterfeit cosmetics and personal care products can cause harmful side effects due to the use of cheap ingredients,” it added.

Efforts to address the issue include proposed regulations and close monitoring by major online retailers such as Alibaba.

Despite these challenges, China’s retail sector remains vibrant and offers significant growth opportunities in sectors ranging from electronics to beauty products.

The development of the market is also influenced by technological advances, including IoT and augmented reality, which are changing consumer experiences and expectations.