Foreign firms face challenges cashing in

As many Western retailers are well aware, China’s retail market is one of the most lucrative in the world.

However, while the country’s 1.3 billion consumers offer immense potential, getting to them is another matter, notes an executive with Boston Consulting Group in Shanghai.

For starters, much of the retail market is served by state-owned distribution companies and small, private wholesalers.

Therefore, despite the fact that the retail industry is growing by 50 percent per year in China, it’s estimated that modern Western retailers reach only one-quarter of the 500 million consumers who live in or near the 3,000 largest cities and towns.