Retailing in China
China has attracted much attention as the giant slowly awakens and puts its 1.2 billion population in the limelight as potential consumers. As an emerging superpower, China holds immense opportunities for the rest of the world. Many have taken advantage of the “open-door” policies and have steadily...
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| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2013
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/51444 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | China has attracted much attention as the giant slowly awakens and puts its 1.2 billion population in the limelight as potential consumers. As an emerging superpower, China holds immense opportunities for the rest of the world. Many have taken advantage of the “open-door” policies and have steadily streamed into this “Land of the Dragons” to try to capture this huge market.
As the local retail scene becomes more saturated and competitive, many retailers are fighting lower profit margins and even losses. With the current emphasis on globalization, Singapore’s government is encouraging Singaporean firms to regionalise in an attempt to exploit opportunities abroad and remain competitive. All these factors combined might have given companies the push in spreading their wings overseas. This study was undertaken in an attempt to gain a deeper understanding of China’s retail market. Through analysis of secondary data, we hope to shed some light on the opportunities and problems of doing business in China, especially in the retail scene.
From our research and analysis, we found that while opportunities abound for investors, problems exist in the form of antiquated distribution system, wide disparity in income between rural and urban consumers, differing tastes and preferences between regions, just to highlight a few.
Expanding overseas is not only for multinational corporations. Smaller companies are also able to compete effectively in the international arena if the right strategy is employed. One way for smaller Singaporean companies to enter the China market would be via franchising and partnership with the local companies. Though the action is predominantly in Beijing, Shanghai and Guangdong at the moment, other cities and provinces that are not as crowded should also be considered.
Further research and studies are still required before a company actually ventures overseas. We hope that this study would be useful as a preliminary background for those intending to enter China’s retail market. |
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