As an ancient capital in China’s long history, Xi’an inherited rich culture and history which has deeply influenced the city till now. The height limit of all buildings in downtown areas surrounded by ancient walls and gates leads to typical building structure among all retailing formats. Meanwhile, with the implementation of “the Belt and Road Initiative”, this ancient city has been not only penetrated with modern grocery retailers but also well prepared for new concepts of retailing.
The down town area in Xi’an is surrounded by ancient walls and gates. In order to protect the historic culture, buildings in this area are all limited to a certain height. With such height limit, department stores have to scale out in order to expand its selling space.
Xi’an is highly penetrated with convenient stores, yet the market is extremely fragmented with a large number of independent players. The majority of the independent convenience stores adopt very similar logos to the leading chained player, Everyday, yet with different brand names.
Sun Simiao, known as the “King of Medicine” in Tang Dynasty left rich culture of Traditional Chinese Medicine, widely accepted among Xi’an residents. Moreover, Mount Qin, near Xi’an city, is rich in various traditional Chinese medicine materials, supports the popularity of TCM in Xi’an.
With rising disposable income and ongoing urbanisation, imported goodsparticularly beauty and personal care products and packaged food witnessedincreasing popularity, leading to the development of cross-boarder e-commercein Xi’an, which is also highly supported by local governments, to follow the “theBelt and Road Initiative”.
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