The Research On The Foreign Invasion Of China’s Retail Industry And Its Impact

China joined WTO in 2001, promising the full liberalization of the domestic retail market in 2004. In order to fulfill its commitments, China canceled the foreign retailers equity,geographical and other restrictions on December 11, 2004. Which means foreign retailers to enter the Chinese market is becoming even more free.Since the full liberalization of the retail industry, with a large number of foreign capital into the retail market, the retail industry security issue has been the focus of attention,research based on the impact of foreign capital of retail industry security has also achieved some results.On the one hand,the entry of foreign retailers into our retail industry makes up for lack of funds, bringing the international advanced technology and service management concepts,forcing local retailers to improve labor productivity through competition with foreign enterprise.On the other hand, the continuous expansion of foreign retailers squeezes the living space of local retailers. At the same time, foreign capital’ region selection strategy exacerbates the imbalance of regional development of retail, and may create a monopoly in some large cities, which are not conducive to the healthy development of China’s retail industry as a whole.The key to the retail industry safety under open conditions is to coordinate the development of foreign and domestic enterprises.Firstly, this paper analyzes overall development of China’s retail industry, reviewed the invasion history of China’s foreign retail, and analyzes current invasion situation of foreign retail, found that the regional distribution and format distribution of foreign retail is uneven, sole tendency and own brand strategy is obvious.Secondly, based on the theory in industrial safety, combined with the characteristics of retail development, this paper establishes evaluation index system from four aspects of industrial control, industrial competitiveness, industrial development power,industrial interests, and conduct dynamic evaluation of foreign retail invasion from 2005 to2013.China’s foreign retail invasion to Shanghai was found to be highest-invasion level,Beijing, Guangdong, Tianjin, Jiangsu, Zhejiang to be second highest-invasion level, and the remaining provinces the general level or below invasion, and then made depth analysis of foreign retail invasion from the aspects of the whole invasion status and regional differences.Finally, this paper analyzes the impact of foreign invasion on China’s retail market structure, market competition and local retailers, and empirically analyzes the influence of foreign invasion on local retails in eastern, central and western regions.Based on the conclusion, this paper puts forward policy recommendations to promote the healthy development of the retail industry.