Unfolding the post‐transition era: the landscape and mindscape of China's retail industry after 2004

Purpose – The purpose of this paper is to critically investigate the competitive situation in China's retail sector after its three‐year transition period upon accession to the WTO. Based on this suggestions for domestic retailers’ development strategies are made. Design/methodology/approach – The landscape of China's retail sector is given first in the paper. A critical review of variations of regional markets following the models adopted by Swanson and Cui and Liu is carried out. A focus group discussion is conducted. Analysis of the focus group discussion highlights the strategic issues of retail development and expansion. Findings – Synthesis of recent studies on China's retail market and results generated from the focus group indicate that the development patterns in the regional markets could vary. Domestic and international retailers enjoy different advantages and face different challenges in their expansion. Issues concerning learning, infrastructure development, government policy and business culture are addressed. Research limitations/implications – This research provides a holistic view of China's retail market and its evolution after it became totally open to foreign investment at the end of 2004. Practical implications – The synthesis of current studies and discussion of focus group data provide domestic retailers with a “mindscape” of the evolving market they are operating in. This mindscape enables Chinese retailers to articulate mid‐to‐long term strategies in their expansion and respond to the dynamic market situation effectively. Originality/value – This study provides a snapshot of China's retail sector at a critical transitional stage. The discussion serves as a starting point to conceptualise the development patterns of an important emerging market.