Sunday, December 9, 2012

RT-MART vs. WALMART in China

Sun Art Retail Group has been a huge competitor in the Chinese retail market where Wal-Mart, Tesco, and Carrefour are the big players. However, having the feel of an ordinary local store plus making it scale to the size of the big players seems to be a very effective strategy in China. This indicates that RT-Mart is becoming dominant in most provinces and cities.

The advantage of knowing the customer needs more precisely than other western providers made the difference. Local management accompanied with offering discounts on regional specialties had made a setback for the western retailers. Actually the western retailers also counted on the market in Asia to compensate for the recently reported decrease in revenues in Europe.

Can we see a dawn of localized retailers in each region of the world who would become "Wal-Mart" of that region? Is it possible to move retail stores to a different culture and compete with local stores? What is the best strategy to understand the customers needs if they come from a very different culture? 

Resources :
[1] http://www.bloomberg.com/news/2012-12-09/sea-bass-with-barbie-dolls-challenge-wal-mart-in-china.html
[2]http://www.wal-martchina.com/english/walmart/wminchina.htm

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