The road to China
Interview with Sherman Chui – Bedford Technologies

Sherman Chui is Associate Director at Bedford Technologies*, an IT services company with offices in Hong Kong and Guangzhou (Canton). He shares insight into what is set to be the world's biggest retail market.

What's new in retail in China?
"Right now specialty retailing is booming in China. Access to international media has been limited in the past so until now most Chinese people have had little or no awareness of global retail brands. The arrival of big names as international retailers compete to open stores in China is changing this. TV advertising works well but is expensive and audiences fragmented. Advertising space in daily newspapers and magazines is cheaper but readership is still low. In fact, it is the high streets and shopping centres themselves which represent the most powerful means of communication for global retail brands entering the country. Stores are springing up out of nowhere and it is quite common for a retailer to occupy five zones across two floors of a department store, or even ten to twenty points of sale within the same shopping centre! Retailers basing their strategies on the old Chinese approach: "repetition creates reputation", are enjoying the most success. Etam is a case in point, increasing its PoS count from 0 to 1,500 across the north of China in just 6 months!"

How does central China differ to the rest of the country?
"Average incomes are much lower in rural areas and basic essentials account for most retail purchases. Brand awareness is also low compared to those living in large seaside towns or inland cities. Clothing and shoes represent the biggest retail sector, followed by mobile telephones, computers and jewellery."

* Bedford Technologies is VCSTIMELESS' approved partner in China. It provides training, installation and client support for Colombus Retail.