China’s convenience-store market is booming with rapid sales growth and rapid network expansion ahead.
Sales through Chinese convenience stores reached US$19.78 billion last year, representing a compound annual growth rate (CAGR) of 24 percent over the past five years, according to new research from Mintel.
Sales are predicted to grow to $22.75 billion this year and Mintel says there will be more than 117,000 convenience stores in China by 2024 – a huge increase from the 75,000 last year.
“The convenience store sector has experienced double-digit growth, even at this challenging time for brick-and-mortar retail in China. This is due, in part, to consumers’ continuous pursuit of time efficiency, availability and instant fulfillment,” said Chih-yuan Wang, category research director, retail at Mintel Reports – China.
She said to meet customers’ ongoing demand, convenience stores in China need to strengthen their social function and provide more types of the shopping experience, including launching themed stores and exclusive products by collaborating with different manufacturers and brands.
The study shows that more than 61 percent of urban Chinese customers shop at convenience stores several times a week while more than 50 percent of respondents like to window-shop and eat inside convenience stores.
Young and female consumers are more open to themed convenience stores, according to Mintel. More than half (54 percent) of urban Chinese respondents like convenience stores decorated in different themes.
Meanwhile, 56 percent of Chinese respondents say that they like to try new products in convenience stores, skewed towards post-90s (62 percent) and female consumers (60 percent).