China's retail sales are expected to more than double by 2013, growing from $1.22 trillion in 2007 to $3.2 trillion four years from now, according to BMI Forecast Modelling. Strong underlying economic trends, population growth and the increasing wealth of individuals are key factors behind retail market expansion.
Regulatory reform after China joined the World Trade Organization in 2001 has let foreign retailers make significant inroads into the market, contributing to annual retail sales growth estimated at 21%. According to Global Demographics, more than 30% of all urban households in China had yearly incomes in excess of CNY40,000 (US$5,848) in 2007. The National Bureau of Statistics (NBS) estimates that urban retail sales accounted for nearly 70% of total retail sales in 2008.
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