Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 13 pages
Data source: Published sources
Topics:
Metro Cash and Carry; Retail; German wholesaler in China; Foreign direct investment in China; World Trade Organisation (WTO); Logistics; Hans-Joachim Koerber; Jean-Luc Tuzes; Jinjiang Group; Wet markets; Government of China; Global players in China; Wal-Mart; Carrefour; Radio frequency identification (RFID); e-Procurement
Abstract
In 2004 China, with a population of 1.3 billion, was one of the world''s largest retail markets. With the liberalisation of the Chinese economy in 1992 and its subsequent entry into the World Trade Organisation (WTO) in 2001, the Chinese retail market saw the entry of many global retailers. Metro Cash and Carry was the third largest retailer in Europe and the fourth largest in the world, with annual sales of 56.4 billion euros (US$68.9 billion), and around 2,300 outlets in 28 countries. It entered the Chinese market in 1996 and faced competition from other global retailers like Wal-Mart and Carrefour. This case discusses in detail the Chinese retail and wholesale market after liberalisation. The case also discusses the operations, distribution and merchandising strategies of Metro Cash and Carry in China along with its growth strategies. The case can be used to discuss the following points: (1) the state of the Chinese wholesale and retail setup before and after liberalisation; (2) the impact of the WTO on the local and global retailers operating in China; (3) Metro''s entry strategy into foreign markets; (4) Metro Cash and Carry''s operations in China; (5) Metro''s expansion strategies in China; and (6) the challenges faced by Metro Cash and Carry with the entry of other global players into China.
About
Abstract
In 2004 China, with a population of 1.3 billion, was one of the world''s largest retail markets. With the liberalisation of the Chinese economy in 1992 and its subsequent entry into the World Trade Organisation (WTO) in 2001, the Chinese retail market saw the entry of many global retailers. Metro Cash and Carry was the third largest retailer in Europe and the fourth largest in the world, with annual sales of 56.4 billion euros (US$68.9 billion), and around 2,300 outlets in 28 countries. It entered the Chinese market in 1996 and faced competition from other global retailers like Wal-Mart and Carrefour. This case discusses in detail the Chinese retail and wholesale market after liberalisation. The case also discusses the operations, distribution and merchandising strategies of Metro Cash and Carry in China along with its growth strategies. The case can be used to discuss the following points: (1) the state of the Chinese wholesale and retail setup before and after liberalisation; (2) the impact of the WTO on the local and global retailers operating in China; (3) Metro''s entry strategy into foreign markets; (4) Metro Cash and Carry''s operations in China; (5) Metro''s expansion strategies in China; and (6) the challenges faced by Metro Cash and Carry with the entry of other global players into China.