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To explore the role of retail experience play in clothing select shops and consumers motivation in Beijing China - Dissertation Example

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1.1 Beijing Economic Overview China’s growth in the past thirty years has been one of the most spectacular economic marvels that have transformed the entire country. Economic reforms coupled with urbanization and the state’s commitment to development has placed China as the second highest in terms of GDP, second only to the United States (Thomas White, 2011)…
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To explore the role of retail experience play in clothing select shops and consumers motivation in Beijing China
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To explore the role of retail experience play in clothing select shops and consumers motivation in Beijing China

Download file to see previous pages... Per capita consumption in China was 13,400 renminbi in 2008 which is expected to rise to 17,000 renminbi by 2015. The urban consumption is likely to exceed 13.3 trillion renminbi ($1.96 trillion) making the country the third largest consumer market after the US and Japan (Thomas White, 2011). This is based on an Annual Chinese Consumer Study by McKinsey in 2009. With the expanding market economy the purchasing power of urban residents has risen with a five-fold increase of real income in the past two decades (Wong & Dean, 2009). Wang (2011) endorses that rapid economic growth and improvement in people’s income in China stimulated a huge and expanding demand for services. ‘Consumer revolution’ was created in China as a result of the country’s burgeoning consumerism, new consumption patterns and increasing levels of consumer choices. The changes in consumption patterns led to structural changes in the retail sector. China is not a single homogenous market and hence the needs vary based on the socio-economic and cultural differences across markets within China (Wong & Dean, 2009). The retail sector has received a thrust which thrives on the progressive Chinese consumer. Not only have the domestic retailers, the global retailers also captured market share in the retail boom. Urbanization in China is driving the retail boom as is seen from the chart below. Chart: Urbanization driving the retail boom Source: Thomas White (2011) The study by Thomas White (2011) further finds that the middle-class consumers have now become the face of the aspiring and contemporary consumers. This segment will boast of 340 million people by 2016. Chart: Strength of the Middle-Class Consumers Source: Thomas White (2011) 1.2 Beijing Beijing is China’s second largest city in terms of population. Beijing has also experienced growth in GDP as a result of growth in the fields of investments, imports and exports and growth in the housing and automobile sector. Beijing is expected to experience continued urbanization and globalization. There has been a 402 percent increase in GDP per capita between 2001 and 2011 as the economy of Beijing has grown faster than its population (Starmass, 2013). Beijing has six high-end industrial districts that played a key role in its development and growth. In addition, taxation system reforms have also contributed to the rapid development of the city. Investments in infrastructure development and real estate development have led to rapid urbanization. 1.3 Retail formats, concepts and theories The concept of retail format is ‘murky’ according to Wang (2011) as there is no single accepted definition. Wang, however, cites different authors and their views of different retail formats. For instance, retail formats comprise of offering and know-how. Offering pertains to the external elements such as merchandise assortments, store atmosphere, location, service and price. Know-how includes the internal part which means the retail technology (procedures, methods and systems and techniques of retailing), and the retail culture (the retail concepts, norms, rules and procedures). Goldman (2001) elaborates on format transfer options from developed to developing nations. This could be on as is basis or adaptation. The first is a special case limited to large retailers catering to global segments. All other format transfer options can be grouped under adaptation. Adaptation is required ...Download file to see next pagesRead More
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