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MIRHAMI 2030 “Future Images of Food Consumption", Phase

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SECTION II: GLOBAL REPORT SUMMARY & ANALYSIS<br />

Mirhami <strong>2030</strong><br />

The retail sector show signs <strong>of</strong> polarization, with the lower end <strong>of</strong> the market consisting <strong>of</strong><br />

discounters and the premium end <strong>of</strong> the market growing. The trend is also towards larger<br />

outlets, due to consumer preference for these, which has forced smaller outlets to close down.<br />

Germany has a well­developed and well­established retail sector, which shows a high degree <strong>of</strong><br />

saturation.<br />

2.5.4 China<br />

China's annual retail growth is ranked first among 12 major countries in Asia. Urbanization<br />

continues to drive retail sales growth. China is not a single market due to regional differences.<br />

China's top 100 retailers account for only about 8% <strong>of</strong> the market in the year 2002.<br />

Outstanding domestic hypermarket retailers include Shanghai Lianhua Century Hypermarket,<br />

Shanghai Hualian Hypermarket, Beijing Hualian Hypermarket, Shanghai Nong­gong­shang<br />

Supermarket group and Suguo Hypermarket. Their sales in 2003 reached 200.8 billion,<br />

accounting for 4.5% <strong>of</strong> the total retail industry. The growth <strong>of</strong> hypermarket sales in 2002 and<br />

2003 was at 19.8% and 17.8% respectively. Independent grocers are the most important<br />

business format in the retail industry due to its sheer contribution to total retail sales in China.<br />

There are over 300 foreign retailers arriving from (almost) all continents (Wal­Mart, Carrefour,<br />

Parkn’ Shop, 7 eleven, Ito, Daiei). No truly "national" brands are available in China, as<br />

provincial governments want to protect their local businesses.<br />

Shopping for food is very much a female activity but signs to do it together appear. Men might<br />

follow the wife’s shopping list. (This is the identical shopping habit as in America). <strong>Food</strong> shops<br />

are normally very close to homes therefore people don’t store food ingredients at home.<br />

Kitchens are small. Chinese prefer fresh food stuffs and want to buy them as fresh “even alive”<br />

(hen, fish) as possible.<br />

2.5.4 Hong Kong<br />

A.S. Watson Group and Dairy Farm Group are two the most important and dominating<br />

holding groups in Hong Kong’s wholesale and retail. They operate varies giant store chains.<br />

They both play very significant roles in Hong Kong’s market. A.S. Watson Group evolved to<br />

international retail and manufacturing business. It operates Watson’s Your Personal Store,<br />

PARKnSHOP supermarket chain, TASTE food galleria, Great <strong>Food</strong> Hall, Gourmet boutique<br />

style fine food hall, Fortress electrical appliance stores, Watson's Wine Cellar and Nuance­<br />

Watson airport duty free shops. ASW is also a major producer and distributor <strong>of</strong> water<br />

products and beverages. A.S. Watson Group is a part <strong>of</strong> Hutchison Whampoa Limited in<br />

Hong Kong. Dairy Farm Group operates stores in Hong Kong, Taiwan, mainland China, and<br />

some South Asia countries. In Hong Kong, they operates Manning, personal stores, Wellcome<br />

supermarket chain, IKEA furniture, 7­Eleven convenience stores, GNC health care stores,<br />

Oliver’s food hall, and Maxim caterings.<br />

Wet markets (torit, kauppahallit) are also popular shopping places. Live fish and hen, fresh<br />

slaughtered meat (during previous night), fresh vegetables and fruits and Chinese specialties<br />

(t<strong>of</strong>u, rice sorts, spices, seaweed, and mushrooms) are bought there. Hong Kong imports most<br />

<strong>of</strong> its food from surrounding countries. <strong>Food</strong> brands from Europe (esp. UK, France and<br />

Germany), North America, Japan, China, Thailand and Australia are available on food store<br />

shelves even Finnish brands can be found: Finn Crisp, Panda, Benecol, Battery.<br />

© Finpro & Finland Futures Research Centre<br />

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