Shifting Preferences in China Creates Above Average Growth and Opportunities for Retailers
Retail companies are increasingly focusing on growing their business in China. China is still the most populous country in the world, and with changing demographic, government and economic policies spurring domestic consumption, the spending power of the Chinese consumer dominates the attention of international retail companies.
For example, a few years ago there were few gyms in China, and now fitness clubs are everywhere. This highlights the steady growth of popularity and awareness for exercise and fitness benefits. In Mckinsey’s recently published report “The Modernization of the Chinese Consumer,” China’s growing awareness of healthy exercise habits has created a growing demand for athletic apparels and shoes. McKinsey states “73% of urban consumers are now participating in sports activities, a rate that is comparable to the US, where 70% of American consumers participate in sports. And the rate of participation in sports activities among Chinese consumers has been increasing three to four percentage points each year.”
For companies interested into tapping into this growing lifestyle trend, one interesting outlet is via the athletic apparel market. We looked at a few factors in product range and pricing in the China market for one of the largest athletic retail companies. This information could provide valuable insights into product range planning and pricing efforts as retailers enter and grow in a market where they do not have expertise and experience.
- The Global Price Index takes products that overlap with the USA and calculates the weighted average Price ratio of Price_Country / Price_USA in percent