Market Entry Strategies Case Study

Tesco in China: Opportunities and Challenges

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Abstract:

China is the second largest grocery retail market in Asia after Japan. Grocery retailing in China offers tremendous scope and potential for the existing players and new entrants to this sector. Their business models are based on the varied tastes, cultures and vast regional expanses of China, which supports diverse retail formats like:

1. Convenience stores
2. Supermarkets
3. Hypermarkets
4. Department stores

There is much scope for modern format retailers to increase penetration in suburban areas and second tier cities. The ability of retailers to interpret the changing needs of consumers, and tailoring the service for the intricacies of the market, is vital for future growth. Many international and local players like Carrefour, Wal-Mart, Tesco and Lianhua are in the fray. Tesco, the UK-based grocery retailer is adopting a multipronged stance in China. This case study helps to analyse the multiformat strategic approach of Tesco and whether it would succeed in China.

Pedagogical Objectives:

• To study consumer behaviour in China for grocery purchases.
• To analyse the evolving grocery retail formats in China.
• To analyse the success of Tesco's multiformat retailing strategies in China.

Keywords :  Tesco in China; Multiformat; Grocery retail business; Tesco Express; Convenience stores; Supermarkets; France's Carrefour; US Wal-Mart; Hypermarkets; Hymal stores

Contents : 
Grocery Retail Business in China
Asian Shopper’s Attribute Pyramid
Food Retail Format in China
Predicted Growth in Grocery Sales
The impact of urbanisation on the grocery market
Leading retailers hypermarket Expansion
Market Share of Leading Retailers
Tesco –Values and Processes