Market Entry Strategies Case Study

METRO Cash and Carry – Exploring the Chinese Markets

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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 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) in 2004 with around 2300 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. Further the case discusses the operations, distribution and merchandising strategies of Metro Cash and Carry in China along with its growth strategies.

Pedagogical Objectives:

• The state of the Chinese wholesale and retail setup before and after liberalisation
• Impact of WTO on the local and global retailers operating in China
• Metro’s entry strategy in foreign markets
• Metro Cash and Carry’s operations in China
• Metro’s expansion strategies in China
• Challenges faced by Metro Cash and Carry with the entry of other global players in China.

Keywords : Metro Cash and Carry; German Distributor in India; Foreign Investment Promotion Board; Foreign Direct Investment; Market Entry Strategies Case Study; Indian Distribution Set up; Indian Wholesale Industry; Indian Retail Industry; Organised Retailing; Global Players in India; Membership Cards; Government of India; Wal-Mart

Contents : 
China Retail and Wholesale Market
Metro Cash and Carry Worldwide
Metro Cash and Carry in China
Business Units of Metro Jinjiang Cash and Carry Corporation
Human Resource Development
Growth of Metro Cash and Carry in China
Future Outlook