Market Entry Strategies Case Study

Carrefour in China

OR

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.

Pedagogical Objectives:

• To discuss Carrefour's successful entry into China and how it positioned itself to attract the Chinese shopper
• To discuss the competitive forces that typically affect the retail giants.

Keywords : Carrefour; China's retail industry; Hypermarkets; Restrictions on foreign retailers; The reform process; Wal-Mart; Metro AG; Market Entry Strategies Case Study; Procurement centres; WTO (World Trade Organisation) ascension; Joint ventures; Lianhua supermarkets

Contents : 
Introduction
China’s Retail Industry
Carrefour
Major Supermarkets And Hypermarkets In Shanghai
China’s Top Retail Chains In 2002
Major Foreign-Invested Hypermarkets In China