Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 7 pages
Data source: Published sources
Abstract
For marketers around the world, China presents a vast demography in terms of consumer habits and preferences. After the country embarked on an ''open door'' policy, many multinationals thrived on the country''s diversity and consumer spending power. In the retailing sector, the arrival of multinationals changed the way the Chinese shopped, owing to the emergence of different types of retail formats. In this arena, France- based Carrefour successfully pioneered the hypermarket format by establishing 50 stores in just 10 years. Other giants that followed were the US-based Wal-Mart and Germany-based Metro AG. However, the domestic hypermarket operators countered the threat from foreign giants by merging their operations and expanding their presence. The case study details Carrefour''s successful entry into China and how it poised itself to attract the Chinese shopper. The case also presents the competitive forces that typically affect the retail giants.
About
Abstract
For marketers around the world, China presents a vast demography in terms of consumer habits and preferences. After the country embarked on an ''open door'' policy, many multinationals thrived on the country''s diversity and consumer spending power. In the retailing sector, the arrival of multinationals changed the way the Chinese shopped, owing to the emergence of different types of retail formats. In this arena, France- based Carrefour successfully pioneered the hypermarket format by establishing 50 stores in just 10 years. Other giants that followed were the US-based Wal-Mart and Germany-based Metro AG. However, the domestic hypermarket operators countered the threat from foreign giants by merging their operations and expanding their presence. The case study details Carrefour''s successful entry into China and how it poised itself to attract the Chinese shopper. The case also presents the competitive forces that typically affect the retail giants.