It's not really being beaten at all. It is merely shifting from smaller, independent shops/stalls to established franchises. In many cases, these franchises are a form of co-operative, a joint venture established by a number of former successful, smaller, independent store/stall owners.
This is happening directly because of recent and current "interest in/actions against" piracy. Such actions should only be taken at face value, as they are specifically about saving face on an international stage. However, the one defining consequence here in China is the increased "kickbacks" required to operate such a business. The "overheads" are beyond the majority of smaller stores/stalls, hence the reduction in number of such businesses, and subsequent formation of franchises.
This is an example of how statistics are unreliable, and best used to support an untenable/untrue position or assertion. It is something at which this particular regime is very, very accomplished. It has to be, in order to maintain itself. I am using very careful, neutral language here, as I have been living/working here for 14 years, and would like to continue doing so.
Another important factor to note is the shift towards digital piracy, which is just...massive. You wouldn't believe it- every single piece of software, every piece of entertainment media you can imagine, right at one's fingertips within minutes, with zero moderation/intervention in sight. No-one under the age of 28 will even walk into a "Music/DVD" store anymore. It's another example of seriously skewed/selective statistics in a well-orchestrated international PR campaign.
China is an amazing place on many different levels, both positive and negative.
