Retailers eye big chances in small cities

As China is keen to expand brick-and-mortar and virtual shopping infrastructure to further bolster the country's consumption potential, domestic players have begun to deploy resources in niche markets to maintain robust growth.

The government's combined measures to stimulate domestic consumption capacity, including creating new forms of brick-and-mortar and online shopping, and improving logistics facilities in the country's rural areas, are creating opportunities.

Gome Retail, a major retail chain operator in China, will partner with Germany-based kitchen retailer Ixina to open 200 stores in first-, second-and third-tier cities over the next three years.