Fifth largest national retailer of China face increased competition from Wal-Mart and Carrefour, with the opening of the fastest growing retail market in China in January 2005. In response, Beijing Hualian developed a new “shop” family aimed at the middle class growing in the nation, comprised of young consumers have tastes size fashion. As hypermarkets, warehouses Hualian family include the food and non-food lines, but differ in design and in the mix of products and brands noticed. Results flagship store (hypermarket in Beijing renewed) have been encouraging, with revenues and profits up and customers who spend more on each visit. The company must decide quickly deploy Stores family in China. Strategic issues are preferably competition moving quickly to new cities, the balance of power purchase multinational retailers were also buy goods for export, based on the understanding of Beijing Hualian internal market rapidly changing capital for expanding access, training and retention of Chinese management talent.
by
David E. Bell
Source: Harvard Business School
27 pages.
Date Posted: November 14, 2005. Prod #: 906403-PDF-ENG
Beijing Hualian solution case
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