Chinese Market Analysis

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1. Introduction In recent years, some foreign retailers have operated in China successfully. A good example of it is Carrefour. To know how to Carrefour succeeds, this report will analyse it. The report includes 4 parts. At first, it introduces Carrefour simply. The second is the analysis of the Chinese retail market environment and SWOT of Carrefour. Thirdly, report will evaluate Carrefour’s marketing strategies. Finally, it makes recommendation on whether the Chinese market is a suitable destination for Carrefour. 2. Introduction of Carrefour Carrefour is a grocery retailer of France which is the second biggest retailer in the world. It has operated 13 years in China. Nowadays, it own 79 hypermarkets, 200 champion supermarkets and 8 discount stores in 31 Chinese cities. The sale of Carrefour is the biggest in the all of foreign capitals in Chinese retail market (Chen, 2007). 3. The Analysis of Chinese Retail Market Environment and SWOT of Carrefour 3.1 Social Economic Environment Analysis Due to the fast development of Chinese economy, people’s income also had a rapid increase. Figure 1 shows the per capita annual disposable income in China during the last decade. (source: National Bureau of Statistics of China, 2008) According to the figure 1, Chinese people had more disposable money. Therefore, their purchasing power has become stronger and stronger which means people can spend more money satisfying their needs (Baidu, 2008). It make Chinese retail market has opportunity to sell more products. On the other hand, the rise of income leads consumer’s demand increase (Lu, 2007). It brings a big challenge to Chinese retail market. They need provide not only good product, but also good service to consumer which will increase their cost. Taking one with another, the increase of people’s income is a good thing to Chinese retail market. To Carrefour, there is

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