Carrefour Strategy In China Essay

864 words - 4 pages


Study and analyze the entry and expansion strategies of Carrefour in China


The Chinese market, along with Brazil, India and Russia, is one of the fastest growing markets in the world. It is the country with the largest amount of consumers.
250 cities with population over 1 million and a steady rise of living standards…  
For the mass-market retailing, China offers limitless opportunities; more than for any other market segments.
The challenge in China is that with this big population there is a wide range of diversity.
Because of these differences, it is very important for businesses wanting to enter China to work with ...view middle of the document...

Moreover, at that time, the market was not well explored by researchers and international companies, which could give a reliable advice on Chinese customers’ tastes. As a result, at the first stages, Carrefour was exploring the market, observing customers’ behavior and correcting existing marketing strategies.
Before entering China, Carrefour was operating in Taiwan for 7 years. This experience largely helped the company to suite new customers tastes as long as both Eastern cultures are quite similar.
In 1995, foreign investors could not directly operate retail stores. Therefore, the company entered the market as a local partner of Shanghai Hualian Company, which had close relationship with government at that time.
This “partnership” led to rapid expansion of Carrefour in Shanghai

The company also formed a joint venture with Zhong Chuang, a Chinese management consulting firm. They established a firm called Jia chuang that managed the hypermarket in Shanghai, named Chuang Yi Ja but as Carrefour had a major part in running and managing the store, the signboard had the name Carrefour displayed on them.
After its entry into mainland China, Carrefour grew quickly and opened 100 stores within 12 years. In the year 2006, Carrefour employed 40,000 people in China (98 % were Chinese) and served about 300 million Chinese customers per year. Carrefour is seen as the number one French employer and currently buys its products from 22,300 local Chinese suppliers.

Carrefour China market entry strategy was primarily to target first-tier cities, which were not saturated with numerous producers at that time. Location plays an important role in market...

Other Essays Like Carrefour Strategy in China

Wal-Mart Stores: “Every Day Low Prices” in China

1712 words - 7 pages The beginning of spring 2005 must have left a mark on the corporate strategy of every retailer vying for a share in China, the world’s most populous consumer market. From this time on, foreign retailers were no longer constrained to specified regions, forced to enter into joint ventures with local partners, or hampered by a lack of distribution rights—China’s retail market had thawed and was laid open to all. To the world’s largest retailer

It Is Late to Enter China

915 words - 4 pages Critique Paper INTRODUCTION Is it too late to enter China by Edward Tse the Chairman of Booz & Company, Greater China and the author of the China Strategy: Harnessing the Power of the World’s Fastest-Growing Economy? China is a tough market and the competitors may have gotten their first by the biggest mistake would be choosing not to invest in China by Edward Tse. Summary of article While many other countries have slipped into an economic

Cross Cultural Perspectives

1799 words - 8 pages embarked on a strategy that involved focusing resources on Coke’s megabrands, an unprecedented amount of standardization, and the official dissolution of the boundaries between Coke’s U.S. and international organizations. Fifteen years later and under new leadership, Coke’s strategy looks very different and is no longer always the same in different parts of the world. In big, emerging markets such as China and India, Coke has lowered price

Business Culture and Strategy

2417 words - 10 pages ” Customer First, Service Foremost”, that means customers are the suppliers of food and clothing for China Telecom, they considered that its services are related to the interests of the most of people and the realization of development, what they do is based on customers and their purpose is to satisfy the customers’ needs. The purpose of this report is to analyses the Customer Care Strategy in China Telecom. And some recommendations will be proposed in

Wal-Mart Stores Inc: Dominating Global Retailing Comprehensive Case

4282 words - 18 pages it grows around the world, it is important to its success that it exchanges best practices among all the countries where it operates. Wal-Mart launched its globalization efforts with an initial foray into Mexico, then to Brazil, as well as Argentina. It then penetrated Europe with its stores in Germany and in the United Kingdom. Its Asian strategy composed of China, Korea and Japan. Falling trade barriers due to globalization

Global & Amp; Applied Economics

2207 words - 9 pages ,it though the social media get more customers and connect with more potential customers. Statistics and Measures The other thing about social media is that you can track your traffic. You can test, and plan your marketing strategy, and view of feedback and response some social media sites have a built-in measuring tool. Like Carrefour. These are some of the main advantages, social media can make your business better, no matter how your

Recent Research on China Ups (Uninterrupted Power Supply) Market, 2014-2018

1002 words - 5 pages Competitive Edge 5.1.4 Development In China 5.2 Schneider Electric 5.2.1 Company Profile 5.2.2 Business Performance 5.2.3 Competitive Edge 5.2.4 Development In China 5.3 Delta Green Tech 5.3.1 Company Profile 5.3.2 Business Performance 5.3.3 Competitive Edge 5.3.4 Future Development Strategy Research and Forecast of China UPS (Uninterrupted Power Supply) Market, 2014-2018 5.4 American Power Conversion 5.5 Santak 6. Key Ups Enterprises In

Rfid-Working with Rfid

1834 words - 8 pages Visibility Labor & Material Costs Asset Utilization Contract Manufacturing Supplier Management Source: EPC-Global 7 Turning Client Vision into Results Atos Origin has a solid position in these Industries Atos Origin has excellent Customer References and Supply Chain related SI capabilities in the industries where RFID-EPC will have an impact…. Retail Customer References Customer References •Carrefour, Auchan, PPR, AVIS

Foreign Relations of China

2426 words - 10 pages is now no border dispute between Russia and China along their 4300 km border. China also reached a 2000 agreement with Vietnam to resolve some differences over their maritime border, though disagreements remain over some islands in the South China Sea. During the late 1990s and early 21st century, Chinese foreign policy appeared to be focused on improving relations with Russia and Europe to counterbalance the United States. This strategy was

Latest Research on Investment Prospective of Automotive Tire Market in China, 2014-2018

1234 words - 5 pages Competitiveness 6.3.4 Development In China 6.4 Continental 6.4.1 Company Profile 6.4.2 Business Performance 6.4.3 Competitiveness 6.4.4 Development In China 7. Major Automotive Tire Enterprises In China 7.1 Guizhou Tyre Co., Ltd 7.1.1 Company Profile 7.1.2 Business Performance 7.1.3 Competitiveness 7.1.4 Future Development Strategy 7.2 Aeolus Tyre Co., Ltd 7.2.1 Company Profile 7.2.2 Business Performance 7.2.3 Competitiveness 7.2.4 Future Development

Coach in China

547 words - 3 pages Will Coach be able to replicate its Japan success story in China? Why was the firm successful in Japan? Despite Coach’s success in Japan, it is very unlikely that Coach can replicate its success in the China market with the same strategy or Coach’s (then) current targeting strategy. Although both countries are in Asia, however, Coach neglected to realize there are huge cultural and economical differences in both countries. We are looking at

Related Papers

Marketing Strategy Of Vodca In China

4340 words - 18 pages   TABLE OF CONTENTS: 1. Introduction : Background and Opportunity 1.1. Alcoholic Drinks in China - A Market Analysis 3 1.2. The Vodka Market in China 3 1.3. Iceberg - Company and Product Overview 4 2. Market Research Methodology 2.1. Overview 5 2.2. Survey 5 3. Analysis 3.1. Main Competitors in the Vodka Market in Beijing 6 3.2. Market Share Analysis 6 3.3. Distribution Channels Analysis 7 3.3.1. Supermarkets 7 3.3.2. Online

Carrefour China Essay

1066 words - 5 pages Introduction Carrefour was established in 1959 in France by the Fournier and Defforey families. In French, it means “crossroad or intersection of thoughts and ideas”. It aims to integrate the concept of a large department store and the self-service concept. There are four main types of Carrefour stores: hypermarkets, supermarkets, hard discount stores and convenience stores. Carrefour entered China in 1995 and opened the first

Carrefour And Pão De Açucar Negotiations

2971 words - 12 pages , Brazil, China and United Arab Emirates. The main global strategy of Carrefour is to have hypermarkets instead of smaller sized supermarkets. Carrefour started with a single store opened on 1 January of 1958. In 1995, there were already a chain of supermarket and it grew even more after a merger with Promodès, one of its major competitors in the French market at that time. The Carrefour group was the first in Europe to open a

Economic Analysis Exercise

678 words - 3 pages in China had been of chicken product with beef only making up 35 percent (Farnham, 2010). II. Compare and contrast McDonald’s strategies in China with those of Wal-Mart in Mexico. McDonald’s responded to the changing economic conditions in China that included increased incomes, urbanization, and use of automobiles. This lead to the development of its strategy of emphasizing the drive-through as a major engine of growth. The company had to