Are increasing wages a problem for foreign retailers in China?

Yes, increasing wages across all industries have been and remain a top challenge for companies operating in China. The steadily increasing minimum wage in different provinces and the increase of the salary demands of top talent have both greatly affected the salary development in the retail sector. At the same time, ongoing large-scale growth in the retail sector has enabled candidates to weigh professional opportunities by salary and smoothly transition from one company to another. The average salary increase a Chinese employee can expect from changing companies is around 35 percent of his/her annual gross salary. The expected year-on-year salary increase of staying within the same company ranges from just 5-10 percent.