The retail industry in mainland China is expected to return to its normal levels within the next 12 months. There has been an increasing number of retailers that opted for the multi-channel marketing method, such as observing online sales launches and delivery services.
The Asia-Pacific Retail Flash Survey showed that more than 80 percent of the respondents felt optimistic toward growth in retail sales. They also claimed that business operations and trends would return to normal levels within 12 months.
About 13 percent of the respondents claimed to expand their business to Indian and other Asian markets. About 67 percent said that they have resumed business operations within the last three months, while over 80 percent believed that business would be back to normal by next year.
The survey was conducted last April 28, 2020, and May 21, 2020. The purpose of which was to collect data about experience-based and product-based retail activities in the Asia-Pacific regions. It also looked into industry response during the pandemic.
According to the head of research at CBRE Xie Chen, the relatively upbeat recovery in the Chinese mainland showed that improvement may be achieved by the middle of 2021. He added that China has experienced a steady rebound in the shopping centre industry as well. Sales promotions were rolled out across the country during the second quarter that resulted in a boost of traffic and sales of the retail sector.
The head and senior director of Savills China research James McDonald also claimed that there would be a multi-speed retail recovery. This would result in effective pandemic countermeasures, improved consumer confidence and government support, and work resumption for most businesses in the industry.
More retailers still continue to receive relief measures from the Chinese government, including aid from their landlords. About 90 percent of the respondents claimed that these aids might still maintain and improve their businesses in the future.
On the other hand, more retailers still continue to adjust to the 'new normal' of conducting businesses. Some have improved their store network plans and increased their focus on online sales capacity. The move was said to be a response to new demands and trends during the pandemic.
About 13 percent of the Chinese respondents also manifested their intent to expand their businesses by opening new stores across China. The second highest percentage level was said to be among all markets surveyed in the region. The retail market, along with travel and hospitality sectors, were among the hardest-hit industries during the pandemic.
