Study On Etail In China Commerce Essay


From its formation as a Peoples Republic until mid-70, Chinas economic system remains mainly under tighter control of the central government. Three major sectors of the economy - industrial production, agricultural production and the stock management & selling of goods in commercial departments were under tighter government control. Price mechanism, quantity and variety of every sphere of the economy were fixated by the state departments.

This policy of centralisation gave a tighter control over resources through planned, focused and steady development of China's economy, on one hand, but on the more pessimistic side, this concentrated policy obstructs innovation and growth of the economy.

During the years from 1978 to 1984, economic reforms were extended from rural areas to the cities. These reforms were the starting point for the ‘socialist market economy' which gained reputation in the early years of 90s, after almost 10 years of the reform in 1992. Some of the elements the economy where remained within the tighter control of the central, i.e. the public sector, while other were experimented and implemented within the principles of the capitalistic perspectives; to meet the requirements of the market economy a modern enterprise system was created; a link was created between the domestic and international market to bring ‘synergies' for a unified and open market system throughout China and to identify, allocation and optimization of the available resources; and a radical step was to transform the way the government economic management was operating to establish a complete macro-control system.

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Certain groups and areas were encouraged to develop themselves to help, in turn, other areas and groups which were less fortune in order to bring the prosperity in the longer-term. Furthermore, to bring social stability for Chinese people both in rural areas and in the city, a social security system was formulated according to the circumstances of the Chinese social structure and requirements.

To further the economic reforms and ultimately the development of the economy, in 1997 the Government of the Peoples' Republic of China stresses the importance of the non-conventional private sector. Major factors of production, i.e. capital and technology were accepted as major profit generating segments of the economy.

On 11 December 2001, China became the member of the World Trade Organisation (WTO). Mike Moore, WTO Director General made said at the conclusion of the meeting of the Working Party on China's Accession to the WTO:

“International economic cooperation has brought about this defining moment in the history of the multilateral trading system. With China's membership, the WTO will take a major step towards becoming a truly world organization. The near-universal acceptance of its rules-based system will sever a pivotal role in underpinning global economic cooperation”.

According to WTO negotiations, China commits to ‘liberalize its regime in order to better integrate in the world economy and offer a more predictable environment for trade and foreign investment in accordance with WTO rules. Major commitments undertaken by China are:

* All Non-Chinese individuals and enterprises, whether registered in China or not will be given the fair treatment to trade.

* Dual pricing policies will be eliminated for goods produced to be sold in China as compared to exportable production.

* To protect domestic goods and services, no price controls will be used

* Existing laws will be revised and new legislation will be enacted in order to implement the new WTO agreement by China.

* All enterprise will be able to import and export goods freely, with limited exceptions.

* No export subsidies will be imposed on agricultural products by China.

WTO's annexes, which serves as the guarantees to the WTO member states that the transitional commitments and other reforms will actually be implemented will work as a ‘negotiated timetable' that country's economic policies will work according to WTO rules and obligations.

A socialist market economic system has now taken shape, and the basic role played by the market has been improved in the sphere of resource allocation. At the same time, the macro-control system continues to be perfected. The pattern has basically been formed in which the public sector plays the main role alongside non-public sectors such as individual and private companies to achieve common development. According to the plan, China forecast to have a relatively complete socialist market economy in place by 2010 and this will become comparatively mature by 2020.

Gross Domestic Product (GDP)

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Gross Domestic Product (GDP) in the year of 2009 was 335,353 billion Yuan, an increase of 8.7 percent in respect of the previous period.


Yuan (100 Million) (current prices)











The value added of the primary industry acconted for 10.6 percent of the GDP, deopped by 0.1 percentage point over that in the previous year, that of the secondary industry accounted for 46.8 percent, down by 0.7 % point, and that of the tertiary industry accounted for 42.6 %, up by 0.8 %.

The general leve of consumer prices in China was down by 0.7 % over the previous year. Of this total, the prices for food went up by 0.7%. the producer prices for manufactured foods droped by 5.4 percent, of which, the prices f means of production down by 6.7 percent, and for menas of subsistence decreased by 1.2 percent. The purchasing prices for raw materials, fuels and power wnet down by 7.9 percent. The producer prices for farm products were down by 2.4 percent. The prices for means of agricultural production were down by 2.5 percent. The sales prices for housing in 70 large and medium-sized cities were up by 1.5 percent, of which, that for new residential buildings went up by 1.3 percent, for second hand housing grew by 2.4 percent, and the prices for rental and leasing were down by 0.6 percent.

Per Capita Income

In 2009, the annual per capita net income of rural households was 5,153 Yuan, or a real increase of 8.5 percent over the previous year when the factors of price increase were deducted. The annual per capita disposable income of urban households was 17,175 Yuan, or a real increase of 9.8 percent. The proportion of expenditure on food to the total expenditure of households was 41.0 percent for rural households and 36.5 percent for urban households. According to the 2009 rural poverty line with annual per capita net income below 1,196 Yuan, the population in poverty in rural areas numbered 35.97 million at the end of the year.

























At the end of 2009, a total of 234.98 million people participated in basic pension program, a year-on-year increase of 16.07 million. Of this total, 177.03 million were staff and workers, and 57.95 million were retirees. A total of 400.61 million people participated in urban basic health insurance program, an increase of 82.39 million, of whom 219.61 million people participated in urban basic health insurance program for staff and workers, 181.00 million people participated in programs for residents. A total of 43.35 million people participated in urban health insurance programs were migrant workers coming from the rural areas, an increase of 690 thousand. Some 127.15 million people participated in unemployment insurance programs, an increase of 3.16 million. A total of 148.61 million people participated in work accident insurance, an increase of 10.74 million, of which 55.80 million were migrant workers coming from the rural areas, an increase of 6.38 million. A total of 108.60 million people participated in maternity insurance programs, an increase of 16.06 million. A total of 2,716 counties (cities, districts) conducted the new cooperative medical care system in rural areas, with a participation rate of 94.0 percent. The total expenditure of the new cooperative medical care system in rural areas reached 64.6 billion Yuan, benefiting 490 million people. The pilot of new rural social pension insurance started smoothly. The number of people receiving unemployment insurance payment stood at 2.35 million in 2009.

By the end of 2009, there were all together 39 thousand social welfare institutions of various types providing 2,754 thousand beds, accommodating 2,088 thousand inmates. Of this total, 30 thousand were rural elder-caring organizations providing 1,885 thousand beds, accommodating 1,511 thousand inmates. There were 140 thousand community service facilities without accommodations, of which there were 9,726 community service centers and 25 thousand community service stations. A total of 23.477 million urban residents received the government minimum living allowances, or 129 thousand more than the previous year. About 47.593 million rural residents received the government minimum living allowance, an increase of 4,538 thousand and 5,543 thousand rural residents received government five-guarantee relief, an increase of 57 thousand. Medical aid was provided to 4,172 thousand needy people in cities and 6,884 thousand needy people in rural areas. Another 10.478 million needy people in urban areas were financed to participate in urban medical insurance system, and 36.898 million needy people in rural areas were financed to participate in new type of rural cooperative medical care system. A total of 75.6 billion Yuan worth of social welfare lottery tickets were sold and a total of 4.1 billion Yuan were received from direct donations.


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At the end of 2009, the total of employed people in China numbered 779.95 million, 5.15 million more than that of 2008. Of this total, 311.20 million were employed in urban areas, a net increase of 9.10 million, a newly increase of 11.02 million. The urban unemployment rate through unemployment registration was 4.3 percent at the end of 2009, an increase of 0.1 percentage point over that of 2008.

Population, Living conditions and Social Security

At the end of 2009, the total number of Chinese population reached 1,334.74 million, an increase of 6.72 million over that at the end of 2008. The year 2009 saw 16.15 million births, a crude birth rate of 12.13 per thousand, and 9.43 million deaths, or a crude death rate of 7.08 per thousand. The natural growth rate was 5.05 per thousand. The sex ratio at birth was 119.45.



* Demographics

* Income and expenditures of households

* Income

* Expenditures

* Overall consumer behaviour (consumption patterns)

* Retail Trade in Poland

* Value of retail Sales

o Seasonality

o Rate of return

* Trade infrastructure

o Geography of trade

o Shop/supermarkets: number, area, change

* Polish grocery market

* Value of the market

* Largest polish retailers

* Leading grocery chains

* Profiles of ten largest retail firms and groups in Poland

o Jeronimo Martins Dystrybucja

o Tesco

o Emperia Trading Group

o Carrefour

o Eurocash

o Auchan

o Schwarz Group

o Real

o Bomi Capital Group

o ITM (Intermarche)

o Market trends

§ Consolidation of trade

§ Multi-format retail

§ Development of budget offers

§ Development of loyalty schemes

§ Expenditure on TV advertising

o Main features of distribution channels

o Large format stores

§ Hypermarkets

* Main features of segment development

* Profiles of hypermarket chains in Poland

§ Supermarkets

* Main features and segment development

* Delimarkets

* Profiles of selected supermarket chains in Poland

§ Discount stores

* Main features and segment development

* Profiles o discount chains in Poland

o Small format stores

§ Convenience stores

* Main features and segment development

* Profiles o convenience stores in Poland

§ Petrol station stores in Poland

* Petrol stations at chain stores

§ Other small format stores

* Co-operative stores Spolem

* Profiles of small format grocery chains in Poland

§ Specialist food stores in Poland

§ Online grocery trade

* Preferences and shopping habits of Polish consumers

o Methodology of the survey

o Structure of the sample

o Shopping habits of Polish consumers

§ Person responsible for buying food and articles of everyday use

§ Places to shop

§ Awareness of shops

§ Expenditures

§ Factors influencing the choice of a shop type

§ Loyalty scheme

§ Frequency

§ Number of hours devoted to shopping

§ Day and time of shopping

§ Using the car for shopping

§ Advertising brochures

§ Planning the shopping

§ Factors influencing the choice of food products

§ Promotional events and techniques

§ Online shopping

Economic climate and its impact on the shopping habits of Polish consumers


Economic System, Accessed at Chinese Government's official web portal. Web Link: [Accessed on March 1, 2010]

WTO successfully concludes negotiations on China's entry. Accessed at World Trade Organisation (WTO), Web Link: [Accessed on March 1, 2010]

Trade Policy Review Body, Trade Policy Review, Report by the Secretariat, People's Republic of China (Document WT/TPR/S/161, 28 February 2006), World Trade Organisation, Web Link: [Accessed on March 1, 2010]

Statistical Communiqué of the People's Republic of China on the 2009 National Economic and Social Development , National Bureau of Statistics of China, February 25, 2010 Web Link: [Accessed on March 8, 2010]