"Location, location, location," the mantra of homebuyers and sellers, is equally paramount when it comes to setting up shop - and is especially so as China's urbanization drive continues to present retailers with various opportunities for expansion and development.

Over the years, many foreign companies have taken advantage of China's urbanization, such as General Motors, which formed a joint venture with China's SAIC and rapidly expanded to include hundreds of dealerships in many of China's smaller cities.

Another US major fast-food chain, KFC, developed warehouses and supply chains to create scale at regional and national level. It also creatively structured its expansion into smaller cities, carefully planning and sometimes taking years to select the right locations for outlets, according to Yuval Atsmon, a partner at the international consultancy McKinsey & Co.