B&Q's Strategies in China

While planning its entry into China, B&Q initially considered one of the three major Chinese cities - Shenzhen, Beijing and Shanghai - for the opening of its first store. In 1998, the company finally decided to set up a store in Shanghai mainly because of its diverse population and as it was the commercial capital of the country. B&Q then looked for a potential partner to form a joint venture based on certain criteria (Refer to Table I for B&Q's criteria to set up the joint venture).

In 1999, B&Q formed a joint venture with Home Decorative Building Materials Ltd. - a Shanghai based property developer, which offered land in Shanghai. The joint venture was named Shanghai B&Q Decorative Materials Company (Shanghai B&Q)...

The exterior and interior design of the B&Q Shanghai store was done in white and orange colors, typical of its stores in the UK. The store was big with vast ceilings, high racking and was well lit with bright lights. Each department had instruction boards explaining how to assemble and use the products. The floor employees gave vivid product demonstrations to the customer. The stores had a special children's corner where children could play and construct houses using small pieces of wood (Refer Exhibit II for a photograph of a B&Q store (exterior) in China).