Commercial Trade & Distribution

1. Development Status
Nanjing is a commercial and logistics center in East China, with a well-developed commercial trade & distribution industry. Nanjing’s total retail sales of consumer goods ranks No.1 in Jiangsu and No.2 in East China. The commercial trade & distribution industry is one of Nanjing's competitive and pillar industries. In 2016, Nanjing's total retail sales of consumer goods was RMB 508.82 billion, and the market consumption has grown steadily. In terms of foreign trade, Nanjing's total import volume was RMB 136.304 billion and export volume was RMB 195.215 billion, for a grand total of RMB 331.519 billion in 2016.,Both saw positive growth.


Currently, Nanjing boasts all kinds of large-scale commercial facilities and numerous well-known international brands. Xinjiekou has become one of the country's commercial areas with the most commercial facilities and internationally renowned brands. Nanjing has numerous well-known leading enterprises in the commercial trade & distribution industry, such as Suning Appliance Co., Ltd., Suguo Supermarket Co., Ltd., Hisap High Technology Corporation, Nanjing Xinjiekou Department Store Co., Ltd. (Nanjing Cenbest), Nanjing Golden Eagle International Shopping Group Center Co., Ltd., Jiangsu Deji Group Co., Ltd., SUMEC Group Corporation (SUMEC), and Jiangsu Overseas Enterprise Group Co., Ltd.


2. Development Advantages
(1) Commercial structure Nanjing is located in the eastern coastal region, the frontline of China's reform and opening-up. During its development over the past 30 years, Nanjing has attracted a number of foreign-invested enterprises from whom Nanjing’s local enterprises have learned advanced business models and management philosophies. The chain-store operational format originated from the Yangtze River Delta. The development level of Nanjing's chain-store operations ranks top in China.


(2) Commercial logistics Nanjing is located downstream of the Yangtze River golden waterway. It boasts three transportation hubs that include high-speed railways, airports, and ports and has a complete transportation network that consists of railway, road, waterway, air, and pipeline transportation modes. Nanjing has significant advantages as a comprehensive transportation hub. Nanjing's logistics industry has been developing well. In 2016, Nanjing was rated as one of China's modern innovative logistics development pilot cities.


(3) E-commerce Nanjing was shortlisted for the first group of national e-commerce model cities in 2011. Its e-commerce development level ranks top in China. In 2015, the city's e-commerce trade volume was RMB 871.5 billion, ranking No.1 in Jiangsu province. The local enterprise Suning.com is an e-commerce leader and enjoys 5% of the online retail market share. Solid e-commerce foundations facilitate development of the commercial trade & distribution industry.


3. Development Goals and Priorities
(1) Development Goals
Continue to consolidate and improve Nanjing's position as a regional central city for commerce and trade. Accelerate construction of various specialized wholesale markets, form a multi-level and multi-form wholesale trading system, and build a modern procurement trading platform that integrates merchandise display, information dissemination, pricing, and e-commerce.


(2) Development Priorities
a) Actively develop chain-store operations, drive large-scale chain enterprises to accelerate development through mergers, and develop a number of leading chain operation enterprises.

b) Accelerate e-commerce development and improve the level of informatization and modernization in the commercial trade & distribution industry.

c) Bring in more top-tier department stores, international well-known brand stores, and international entertainment and leisure enterprises.


4. Supportive Policies (excerpt)
(1) Outline of the 13th Five-Year Plan for National Economic and Social Development in Nanjing
Accelerate the transformation and upgrade of the commercial trade & distribution industry, and positively develop online retailing, cross-border e-commerce, and other new business forms and models. Promote service-oriented development of the manufacturing industry, promote the resource and business integration of manufacturing enterprises and production service enterprises, and accelerate the transformation of the manufacturing industry from being production-oriented to being service-oriented.


(2) Nanjing's 13th Five-Year Plan for Developing the Service Industry
New growth in consumerism will be fostered. The percentage of consumerism to GDP will rise to 60%, and the coverage of convenient commercial facilities in urban built-up areas will be 100%.


Regional commercial and logistics center: Nanjing's total retail sales of consumer goods will exceed RMB 700 billion and keep ranking in the top three in the Yangtze River Delta. A pattern of large market, great distribution, and great trade will form. The modernization level and dominant position of the commercial and logistics industry will be further improved.

 

(3) No.14 document (2005), Notice on Printing and Issuing the Jiangsu Provincial Regulations on Special Funds for Developing Commercial Chains (Trial) issued by the Department of Finance of Jiangsu Province
Since 2005, the Department of Finance of Jiangsu Province has arranged dedicated funds of RMB 15 million every year to support and develop influential and promising start-up chain enterprises that rank in the top 10 in Jiangsu province or top 50 in China.


(4) No 132 document (2005), Nanjing Municipal Action Plan for Accelerating Development of the Service Industry issued by Nanjing Municipal People's Government
If chain enterprises plan to engage in selling tobacco, medicine, books, newspapers, magazines, and audio and video products, only the headquarters of such enterprises need to apply to approval authorities. Chain operation enterprises' logistics distribution centers that are certified by competent authorities are eligible to apply for all favorable policies for logistics enterprises. If branches set up by chain enterprises across regions implement a unified operation and accounting system without setting up separate bank accounts for settlement or preparing separate financial statements and account books under the leadership of the headquarters, connect to computers at the headquarters, and have unified and standard management, the headquarters shall declare and pay taxes to tax authorities in the district where the headquarters is located after being approved by financial and tax authorities. The incremental portion is shared between all regions based on the sales percentage.


Accelerate construction of the rural distribution network. Encourage large-scale commercial and trade enterprise groups to develop chain stores that serve the rural areas and provide consumer goods and agricultural production materials. Provide financial support and rewards to enterprises that set up chain stores in villages and towns, establish distribution centers in suburban counties, and implement reliable projects in the countryside.


5. Primary Vehicles
Three municipal commercial and trade centers, including Xinjiekou, Hexi, and South Nanjing New Town commercial and trade centers, and four municipal commercial and trade sub-centers, including Dongshan, Pukou, Xianlin, and Hunan Road municipal commercial and trade sub-centers