Business Case Studies, Market Entry Strategies Case Study, China's Luxury Retailing Industry, Saks Inc.'s Market Entry Strategies

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Market Entry Strategies Case Study

Case Title:

China's Luxury Retailing Industry: Saks Inc.'s Market Entry Strategies

Publication Year : 2006

Authors: Muthu Kumar, Sumit Kumar Chaudhuri

Industry: Retailing


Case Code: MES0037

Teaching Note: Not Available

Structured Assignment: Not Available

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Since its economic reforms in 1978, increasing purchasing power in China coupled with growth in private consumption and growing awareness of luxury goods have fuelled the growth of the market for luxury products in the country. It is estimated that by 2015, China would surpass the US and Japan as the largest luxury market in the world. To cash in on such growth potential, Saks, one of the leading high-end luxury department chains from the US is planning to foray into China.

Pedagogical Objectives:

  • To discuss and debate the impact of economic reforms in China on luxury retailing in the country
  • To understand the success factors in China's luxury retailing industry
  • To discuss the market entry strategy of Saks in China.

Keywords : China's luxury retailing industry; China's consumer behaviour; Saks Inc.; Market Entry Strategies Case Study; Market entry strategies; Late movers' advantage and disadvantage; Purchasing power, Gross Domestic Product (GDP) and consumption; Competition; Cosmetics and personal care products; Joint venture, partnership and alliance; Roosevelt China Investments Corporation; Proctor & Gamble (P&G); Giorgios Armani; L'Oreal; Shiseido; Department stores

Contents : 
China’s Economy: The Emergence of Luxury Customers
Gross Domestic Product Forecasts
A Forecast of Increasing Purchasing Power
Chinese Urban Households and Total Urban Disposable Income
China: Share of Urban Households by Income Class
China’s Luxury Retailing Industry: The Competitive Landscape
Saks Inc.’s Market Entry Strategies

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