New Index from CCFA: Shenzhen Ranking first

Today, China Chain Store & Franchise Association (CCFA) issues the index of convenience stores (CVS) in cities of China, Shenzhen at the top and Beijing the last but one. This survey analysizes the 4 index of chain-orientation CVS taken from 26 medium and large cities about their growth rate, saturability, propotion in 24 hours and government suport.

There comes to the index ranking. The first three cities are Shenzhen, Dongwan and Taiyuan; yet Shanghai ranking 6th , Guangzhou 9th. According to the result of the survey, the researcher notes that the saturability of CVS is generally at low level; up to now, Dongwan and Shanghai have reached the highest level in the motherland, where every 3000 citizens has one convenience store. However, in general, more than 5000 people have one store in most cities; what’s worse, even in some cities every 20,000 or 30,000 have one, such as in Beijing, every 20,700 have one store.

But the development of CVS is at a rapid speed in a whole. Only last year, the average number of CVS in 26 cities has increased by 19.5%, at large higher than that of department store and supermarket. Besides, the growth rate of Xuzhou is as high as 100%, and Wenzhou, Hohhot and Xuzhou all surpass 50%, while Beijing is just at the growth speed of 8% and Shanghai suffers a negative growth, as the only exception amongst the 26 cities, showing a ruthless market competition.

One feature revealed in the result is regional development of CVS in China on a small scale. Under the tremendous pressure of market competition, there is less and less possiblity for CVS to make profit.

Sonia from Shenzhen Post contributes to the story

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