There are music chain stores in China. I've seen some of them near the metro in Beijing. They don't have HMV and other music chain stores that you are use to, but they do have them. You have to look around more because if I found them you can to. You can do it!

It's called "Baidu MP3 Search".

Because everything here, especially music is pirated.  So any store selling legit products would go out of business in a week.

And....just about any dvd or cd can be found in the corner dvd shops if  you don't want to download it. From 3 to 10 yuan each. FRom time to time you can score some real rare gems too. Haven't frequented those shops lately but I see them around.

A cd, in general, is pretty expensive. Considering that almost all music can be found somewhere online for free, they don't have any reason to buy it, even if it was cheap. There are a lot of people back home who do that too. Me, I'm weird because I like having the cd. I'm a big fan of Kpop, and they all come with lots of pictures, sometimes other stuff. A Chinese cd comes at an even better price with even more stuff, so I have a few of those, although they are all boy bands.

Because the Chinese model of business is based on imitation, so if a good store tried to open a chain in most markets, overnight, there would be five mom and pop stores open on the same street, starting with the place next door. They would bootleg the legit products and sell them for a lot cheaper.

The winner would be the store selling things the cheapest. Heck with quality...

Music stores all over the world are going bankrupt because of online pirated downloading.  
The Chinese are kings of the copy rip off, so how in the world would a legit music store be successful in China?? 
QQ has every song under the sun for free download.
Crap...I managed to build a 16k song collection for free before even arriving here.