China has statistical retail potential in abundance and that is a major reason behind formation of Current Economic Retail Internationalisation in China. Geographical coverage of modern FMCG retail outlets is very limited. Only Hungary has a lower density of supermarkets and hypermarkets than Shanghai, the most prosperous urban centre in China. In practice, China has only a relatively small affluent population that has the financial means to afford sophisticated products and services.
Logistics remains one of the greatest challenges facing the development of a modern integrated distribution and retail sector in China. Another important constraint on the development of modern retailing is the shortage of experienced retail staff. First mover foreign retailers have had to invest heavily in training local staff at all levels and then face fierce competition from later entrants who seek to poach promising managerial talent, particularly in the cities of Beijing, Guangzhou, Shanghai and Shenzhen.