China will build a national rural retail network within five
years, an official from Minister of Commerce (MOC) said in Beijing
on?Friday.
Xu Ming, deputy director of MOC market system development
department, said China will develop chain supermarkets and express
stores in counties and major towns, and transform country fairs to
chain stores. The government also encourages retailers to update
rural grocery stores into distribution outlets or franchisers.
Despite amounting to more than 70 percent of the country's
population, Chinese rural population have a disproportionate
consumption capacity.
According to the National Bureau of Statistics, in the first
quarter of 2004, consumption by the citizens of rural China fell to
34 percent of the national total, a record low since 1990s. It is
believed that the shrinking rural consumption results from the low
income of peasants and inefficient distribution network.
There are only 1.6 country markets for every 60,000 peasants.
These rudimentary open-air fairs are filled with fake commodities
and illegal dealings due to lack of quality surveillance equipment
and regulations. Registration fee, commissions and taxes raised
dealing cost and therefore discouragepeasants from entry.
According to Xu, the government will encourage businesses to
develop cheap but durable products tailored to rural demands. It
will further improve infrastructures in rural areas, including
transportation, electricity, communication and drinking
water.
?
(Xinhua News Agency July 24, 2004)
