China Retail Explansion Map

US Retailers target rising middle class in 2nd tier cities US companies such as Gap and Starbucks are hoping their new store locations will attract middle-class Chinese shoppers who aspire for signs of wealth, despite living in less developed cities. These "2nd tier cities" are growing faster than the more modern cities, causing retailers to rebuke traditional strategy based on historic retail sales in favor of growth in imports. Retail Sales in China Billions of dollars > 16 12 - 15.9 8 - 11.9 4 - 7.9 0- 3.9 Retail sales tend to Cities by development follow the coastal, 1st tier city more developed 2nd tier city areas Tiers are commonly defined by a combination of population and economic expansion 2 Fourteen of China's 2nd tier 3. To meet this demand for foreign goods, US Retailers are rapidly opening stores in cities account for 8% of population, but 53% of total imports 2nd tier cities. Source: US Dept of Commerce 2010 Credit: Jenn Ash