Carrefour Strategies To Enter The Chinese Market

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Carrefour Strategies to enter Chinese market For a few years, China has become a key area in the global strategies of multinational companies. Many companies have understood the crucial part that China would play in their investment and, thus, have accelerated those investments in China on a large scale. However, for that to happen, these companies have to integrate China’s economic and social activities; therefore, not only do they have to adapt their products to the Chinese market, they need to adapt themselves to a whole different system than where they are from. This has been the case with a famous French supermarket chain: Carrefour. Indeed, thanks to an adapted organization, Carrefour has “conquered” the Chinese market, but not without difficulties. “Our development relies on a very local, very differentiated positioning, even in the same city”, said Jean-Luc Chéreau, president of Carrefour China1. Not only the supermarket chain has adapted itself to the whole country, it has adapted itself to every various cities and even districts. Here are some keys to Carrefour adaptation to the Chinese environment and how it managed to succeed. First of all, Carrefour has adopted a quick extension all around China and particularly in city centers since one of the specificities of the Chinese market is that 45% of the clients come by bus and 15% by bicycles2. This extension targets above all the big cities such as Shanghai, Beijing and Guangzhou as the clientele is much more abundant here. Secondly, Carrefour has leaned on an aggressive price-politic since its main strategy consists in adapting to the local demand. By using the system of promotions and Carrefour products, it has decreased considerably its price to meet the market local prices. In a way of adapting to the local demand, Carrefour has created a Chinese website in order

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