Jones Lang LaSalle released recently released its Retailer Confidence Survey, which shows businesses in China's retail market are optimistic for 2008.
All of the interviewees say that opening new stores will be the major strategy for 2008. The survey shows that big cities like Beijing and Shanghai are still the first choices for retailers to expand their businesses, followed by the Yangtze River Delta area, Pearl River Delta Region, Western China, Central China and the Bohai economic area.
With the 2008 Olympic Games drawing nearer, many retailers will put their focus on Beijing in the short-term. Since the 2010 Shanghai World Expo is not far away, some retailers are also planning their medium-term development program for Shanghai.
Many retailers say they believe that the good prospect of economic development, rise of consumption expenditure levels and the promotion of tourism are the three reasons for the development of retail market. 76% of the interviewees predict that the total volume of business in 2008 will increase by two digits. 61% of the interviewees predict that the profit in 2008 will increase by more than two-digits. 100% of them say that they will increase the number of stores in 2008; 76% say that they will increase the variety of commodities and services; 50% say that they will enlarge the area of their stores; and 25% say that they will further expand market share by mergers and acquisitions.
A representative from Jones Lang LaSalle in Shanghai told local media that many retailers' actual business achievements in China exceeded their expectations. With the increase of profit, they will take more active approaches in 2008.