CHINA
RETAIL MARKET
Mergers & Acquisitions (“M&A”) is transforming China’s once closed retail
sector. Deal activity has surged over the past two years as consolidation of the
young modern retail trade has begun. The familiar global trend of rapid chain
formation to achieve stronger buying power over suppliers has been established,
and M&A is the tool by which retailers are rapidly linking once fragmented
regional markets. This irreversible trend provides a multitude of investment
opportunities for multinational and domestic corporate and private equity
investors.
Domestic players are rapidly building scale in a competitive land-grab to
acquire the best local assets to form national chains, and the thirst for
capital this creates is generating opportunities for private equity investors
and foreign corporate. Multinational retailers now enjoy unprecedented freedom
to operate but those who entered during the period when the industry was heavily
regulated have legacy issues to deal with such as buying out Chinese partners
and integrating operations. New entrants have the option to make outright
acquisitions of existing retailers or establish their own domestic sales
network.
KEY STATISTICS
Output of Major Industrial Products
Item
|
Unit
|
Jan to Aug 2006 |
|
Bicycles |
10 '000 Unit |
4214.81 |
|
Color television sets |
10 '000 Unit |
5391.87 |
|
Radios |
10 '000 Unit |
3933.28 |
|
Household washing machines |
10 '000 Unit |
1807.48 |
|
Chemical fibres |
10,000 tons |
1300.54 |
|
Synthetic fibres |
10,000 tons |
1194.08 |
|
Viscose fibres |
10,000 tons |
94.08 |
|
Yarn |
10,000 tons |
1082.24 |
|
Cloth |
100 million metres |
280.73 |
|
Pure cotton cloth |
100 million metres |
149.8 |
|
Pure chemical cloth |
100 million metres |
77.14 |
|
Silk |
tons |
86233.6 |
|
Knitting wool |
10,000 tons |
27.03 |
|
Clothing |
10 '000 pieces |
1062699.59 |
|
Sugar |
10,000 tons |
627.79 |
|
Salt |
10,000 tons |
3401.18 |
|
Cigarettes |
10,000 cases |
13689.96 |
|
Beer |
10,000 tons |
2512.34 |
|
Liquor (commodity) |
10,000 tons |
238.75 |
|
Total energy production |
10,000 tons |
126673.83 |
|
Coal |
10,000 tons |
130962.17 |
|
Dairy products |
10,000 tons |
933.79 |
|
Soft drinks |
10,000 tons |
2841.41 |
|
Crude oil |
10,000 tons |
12293.17 |
|
Refined crude oil |
10,000 tons |
19915.16 |
|
Gasoline |
10,000 tons |
3668.09 |
|
Kerosene |
10,000 tons |
647.93 |
|
Diesel fuel |
10,000 tons |
7665.25 |
|
Lubricating oil |
10,000 tons |
387.27 |
|
Fuel oil |
10,000 tons |
1468.65 |
|
Natural-gas |
100 million cubic metres |
384.46 |
|
Electricity |
100 million kwh |
17832.45 |
|
Pig iron |
10,000 tons |
26263.97 |
|
Steel |
10,000 tons |
27250.63 |
|
Rolled steel |
10,000 tons |
29895.75 |
|
Ferroalloy |
10,000 tons |
858.99 |
|
Chemical fertilizers |
10,000 tons |
3444.61 |
|
Chemical pesticides |
10,000 tons |
87.49 |
|
Paint |
10,000 tons |
213.71 |
|
Dyestuff |
10,000 tons |
82.14 |
|
Chemical medicines |
10,000 tons |
102.47 |
|
Outer tyres |
10 thousand pieces |
28038.25 |
|
Synthetic rubber |
10,000 tons |
122.77 |
|
Camera |
10,000 |
5124.97 |
|
Cement |
10,000 tons |
76228.77 |
|
Plate glass |
10,000 cases |
26079.93 |
|
Power generating equipment |
10,000 kw |
7058.61 |
|
Alternate motors |
10,000 kw |
9639.11 |
|
Metal-cutting machines |
10 '000 Unit |
35.94 |
|
Motor vehicles |
10 '000 Unit |
492.47 |
|
Of which: trucks |
10 '000 Unit |
136.21 |
|
Large-medium tractors |
Unit |
146526 |
|
Small tractors |
10 '000 Unit |
131.84 |
|
Locomotives |
10,000 kw |
691 |
|
Railway passenger coaches |
Unit |
965 |
|
Railway freight wagons |
Unit |
26461 |
|
Internal combustion engines |
10,000 kw |
29502.84 |
|
Electronic computers |
Unit |
38342 |
|
Micro-electronic computers |
10 '000 Unit |
6051.53 |
|
Iron ore |
10,000 tons |
35044.48 |
|
Sulphur iron Ore |
10,000 tons |
725.93 |
|
Phosphorite Ore |
10,000 tons |
2469.78 |
|
Silk textiles |
10,000 m |
546574.37 |
|
Coke |
10,000 tons |
17740.82 |
|
Sulphuric acid |
10,000 tons |
3185.73 |
|
Concentrated Nitric Acid |
10,000 tons |
114.68 |
|
Caustic soda |
10,000 tons |
966.14 |
|
Soda ash |
10,000 tons |
1035.53 |
|
Synthetic ammonia |
10,000 tons |
3264.43 |
|
Nitrogenous fertilizer |
10,000 tons |
2524.65 |
|
Urea |
10,000 tons |
1449.92 |
|
Phosphoric fertilizer |
10,000 tons |
773.33 |
|
Potassic fertilizer |
10,000 tons |
146.36 |
|
Synthetic detergent |
10,000 tons |
354.7 |
|
Copper |
10,000 tons |
191.28 |
|
Lead |
10,000 tons |
171.11 |
|
Zinc |
10,000 tons |
197.47 |
|
Aluminum |
10,000 tons |
583.31 |
|
LPG |
10,000 tons |
1144.69 |
|
Aluminium oxide |
10,000 tons |
833.18 |
|
Aluminum products |
10,000 tons |
491.97 |
|
Copper products |
10,000 tons |
359.93 |
|
Steel ships for civil use |
10,000 tons |
698.19 |
|
Household refrigerator |
10,000 units |
3056.5 |
|
Freezers |
10,000 units |
565.75 |
|
Air conditioners |
10,000 units |
5777.06 |
|
Range Hoods |
10,000 units |
568.88 |
|
Carrier communication equipment |
unit |
3754 |
|
Optical communicaiton equipment |
unit |
221599 |
|
Program-controlled switchboard |
10 '000 Unit |
4518.9 |
|
Color Kinescope |
10,000 units |
5330 |
|
Facsimile machines |
10,000 units |
819.8 |
|
Mobile communicaiton equipment |
10 '000 Unit |
300 |
|
Semiconductor intergrated circuit |
10 '000 Unit |
2365680.27 |
|
Semiconductor intergrated circuit large scale |
10 '000 Unit |
714294.27 |
|
Video Recorders |
10 '000 Unit |
693.08 |
|
Hi-Fi |
10 '000 Unit |
3311.45 |
|
Duplicating machinery |
Unit |
287.65 |
|
Thermal electricity |
100 mil.kwh |
14876.38 |
|
Hydropower |
100 mil.kwh |
2557.86 |
|
Plastic products |
10,000 tons |
1902.57 |
|
Dust Collectors |
10 '000 Unit |
3264.68 |
|
Electric cooker |
10 '000 Unit |
4886.7 |
Consumer Price Index and Retail Price Index by region
Same period last year=100
Aug 2006 |