The Chinese retail market over the years has been experiencing a constant growth rate. The National Bureau of Statistics of China has reported that the country has retail sales of buyer goods totaling $3,792.4 billion in 2013, which is a year-on-year growth of 13.2%. In addition, in 2014 the total retail sales of buyer goods amounted to $3,060.6 billion, which is a year-on-year increase of approximately 13%. It is also important to note that the demand for household devices and audio equipment increased by 9% in 2014. It is with these distinct economic trends, coupled together with population growth and the increase of affluence in individuals that have led to the expansion of China's retail market. Its expanding urban population and consumers' desire to spend more will galvanize China's growth of the retail market. Moreover, MarketLine believes that the demand for electronic products within China will advance at a CAGR of 7.2%. Currently Best Buy has 190 stores operating in China and will likely increase within the years to come. As such, Best Buy is in a good position to take advantage of the positive retail movement within China (Sheng Lu, 2010).
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Positive Outlook for Global Consumer Electronics Market .
The global consumer electronics market is projected to expand in the near future. MarketLine predicts that the global consumer electronics market will reach revenues of $254.1 billion in 2013. In addition, the audio visual equipment sector was the most profitable sector in 2013 with revenues amounting to $236.4 billion which is identical to 94.1% of the market's global value (Euro monitor, 2014). Best Buy provides a wide selection of consumer electronics. Some of these include televisions, digital cameras/camcorders, DVDs, compact electronics such as speakers and MP3 players, radios, and all relevant accessories. The preceding data support a positive outlook for the consumer electronic market, which will allow the company to increase its revenue within the short to medium period.
