CHINA will surpass the United States as the world’s largest retail market within the next three years, according to new research.

    Retail sales volume growth will hit 7.9 percent by 2018, compared with 2.6 percent for North America and the global average of 3.4 percent, PwC and the Economist Intelligence Unit (EIU) said in a joint report late Thursday.

    A look at China’s trajectory reveals a dwindling pace of growth over the years, yet its figures remain well above global peers.

    “Despite its slower growth, China remains irresistible to global retail chains. Although annual retail volume has fallen from 15.6 percent in 2009, China is still expected to average growth of 8.7 percent in the next two years,” the report said.

    Home to 19 percent of the world’s population, the rise of the Chinese consumer became increasingly important over the past decade thanks to higher wages, booming urbanization and improved standards of living. By 2022, McKinsey estimates that 75 percent of the Chinese mainland’s residents will be classified as middle class, compared with just 4 percent in 2012.

    International markets are fearful about a protracted slowdown in the Chinese mainland after 2014 gross domestic product (GDP) came in at 7.4 percent, the slowest pace since 1990. However, PwC and the EIU believe that such concerns are overhyped.

    “Yes, China is slowing down, but compared to the West, its GDP growth is enviable,” Jon Copestake, chief retail and consumer goods analyst at Economist Intelligence Unit, said in the report.

    “Having said that getting the basics right is crucial [for retailers.] That means engaging with local partners and developing products to cater to local tastes,” he added.(SD-Agencies)