Us retail giant Walmart upholds a firm belief in the potential of Chinese economic growth, according to its Asia CEO Scott Price.
Speaking at the Asia-Pacific Economic Cooperation (APEC) CEO Summit, Price said that he expects that China will drive more than half of the world’s retail growth over the next decade. This is largely due to the emergence of the Chinese middle class, as well as the shift from a primarily manufacturing based economy to one based on services. Events like Singles Day, China’s biggest online shopping date, have shown that there is a huge demand in the country for good retail.
However, a recent report from HSBC predicted that “profits should emerge as the market matures.” According to HSBC, the online portion of O2O revenues increased by 80% on year in the first half of 2015, reaching $47bn.
In tangent, China’s retail sector is becoming less fragmented and consumers are purchasing more frequently, indicating that there may well be great promise for O2O in the future. Price also referred to the future potential of brick and mortar stores, a required component of O2O. A number of online retailers have invested in a physical presence recently, such as the Amazon book store which opened earlier this month.
Yorum Gönder