Foreign retail giants like Carrefour Wal-Mart expand in China
KeywordsGiants Wal-Mart China foreign capital Carrefour
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Xinhua Tianjin, June 30 (reporter Meng Hua Wang Zongkai) as China's economy took the lead in the financial crisis, foreign business giants stepped up their expansion in China, and a new round of competition in the Chinese retail market has begun. In the 17th session of China Tianjin Investment Fair, "multinational business and Tianjin--2010 Opportunity Cooperation Prospects Forum", Carrefour (China) company North area director Timmy revealed its large-scale expansion plan: "It is expected that at the end of this year, people will see the new more than 10 Carrefour stores in Hebei province." Carrefour, which has always been based on its own expansion, is gearing up for large-scale mergers and acquisitions in Chinese retail companies. The reporter learned that Carrefour and Hebei Baolong Warehouse commercial Chain Co., Ltd. has entered the substantive stage of negotiations. If the takeover succeeds, Carrefour will hold the Paolongcan to complete its first acquisition business since entering the Chinese market. At the same time, another international giant Wal-Mart has also stepped up its pace of development in China. "In 2009, Wal-Mart opened 55 stores in China, surpassing the total annual opening of Chinese competitors." Wal-Mart's path in China will go faster and farther in the future. "Wal-Mart (China) Investment Development Co., Ltd. Senior property manager Lu Zhiping said. Lu Zhiping told reporters that Wal-Mart entered China in 1996, after 14 years of development, the rapid increase in the number of shops, 2009 has been developed to 178 stores. China's retail market remains vibrant compared with the slower-growing global retail market. The Chinese market has become an engine for the development of these multinational retail giants. Carrefour's global performance report showed its 2009 full-year revenue of 96 billion euros, down 1.4% per cent year-on-year. But in the Chinese market, store sales rose 3.1% in the fourth quarter of 2009, up 1.8% in the year. Lu Zhiping also said that in Wal-Mart's global strategic position, "the Chinese market is a vital link". Experts pointed out that China's retail market in the future there is a lot of room for development. Now, expanding domestic demand has become an important guideline for China's economic growth, and the total retail sales of consumer goods has increased significantly, which has brought development opportunities for foreign multinational retail enterprises. Lu Zhiping said: "Wal-Mart's next development will focus on the potential of three-tier cities." Zhouliqun, a professor at Nankai University's School of Economics, points out that with the increasing cost of Chinese market and fierce competition, it has become a new focus of foreign multinational retail enterprises to march to two or three or even four-line cities. At the same time as the small and medium-sized cities, transnational large commercial enterprises in China's big cities began to "deep" pace. Wal-Mart's current strategic goal is to "expand across the country", whether it is an existing city or an emerging urban area, to serve the income of families and the increasing consumption per capita of potential customers. "Wal-Mart statistics show that more than 350 million people are expected to grow in China's big cities by 2025," he said. According to the McKinsey report, as per capita income and rising personal consumption, 95% of China's GDP is expected to come from big cities by 2025. ”Lu Zhiping said. Some multinational business groups are beginning to try to exploit China's high-end services market. Rakuten, the first in Asia's retail business, will start its first wholly-owned store in Tianjin, with more than 50,000 square metres of business area. Lotte Department Store (Tianjin) Business Management Co., Ltd. General manager Cai Xiaofeng said that the new store will be formally satisfied next year, the full introduction of Lotte Department store will be the most distinctive business model and service concept, including private shopping guide, "node Marketing" and so on. In the face of the "expansion" and "deep ploughing" of multinational commercial enterprises, Chinese local retailers have maintained a calm mentality. "The wolf is in fact long ago, the sheep is not less." Chen Shao, deputy general manager of Tianjin People's music supermarket, said that "the biggest advantage of Chinese local retailers is knowing what local consumers want." Its low-cost and regional advantages cannot be squeezed and replaced by foreign investment. At present, there are many local Chinese chains, or to explore the layout strategy, or actively listed to seek more powerful capital integration, through strong alliances to build strategic alliances, by virtue of the market and cultural well-known advantages, according to their own characteristics to innovate, adopt a differentiated strategy to their own long attack the enemy short, playing a piece of heaven and earth. "At present, many of China's domestic retail trade" small junk "has begun to become a powerful" fleet ", with China's sustained economic development, China's market potential is huge. Market cake bigger, I believe that the foreign retail industry will benefit from it. "Zhouliqun said.
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