Carrefour in China
- The Chinese retail market
- Analysis of the Chinese retail market
- A picture of China's retail market: facts and figures
- What are the requirements to set up an hypermarket in China?
- Carrefour in China
- Carrefour's profile in the world
- The beginning in Asia and the strategy in China
- Comparison with other French groups
- The future challenges of Carrefour China
- The difficulties Carrefour encountered and which are likely to last
- One predominant future challenge: become the leader. Thanks to which strategies?
- The role Carrefour could play in the Chinese society
"I have confidence in the ability of the Group's management team to continue the satisfactory implementation of our strategy and successfully complete the major projects already underway, which are beginning to give us a glimpse of the Carrefour group of the future". These are some words of Mr Luc Vandevelve, chairman of the supervisory board of Carrefour, in the 2005 Annual Report of the company. Two years later, in 2007, it was clear that Mr Vandevelve's confidence was right. The glimpse is now even clearer: the strategy and projects of Carrefour have become successful. At the same time, a part of the globe has woken up and has particularly caught the eyes of journalists and economists for some years: the Asian continent, and China in particular, which is now considered as a key to the Group's development. This study is aimed at discussing and analyzing the strategy of a mass marketing company in a giant country.
[...] In fact, China could become the 3rd outlet for Carrefour in terms of turnover biggest mass marketing groups specialized in dietary Number of Turnover 2005 Main brands Groups countries (billion before tax) Neighborhood Market Walmart (USA) Sam's club Carrefour 93.6 Carrefour, ED 30 (France) Metro 55.7 Extra, Metro, Real 30 (Germany) 54.2 Tesco 7 Tesco 48.7 Kroger, Ralph's, Smith's 1 Kroger (USA) Ahold 44.5 Albet Heijn, Gall & Gall 17 (Netherlands) Rewe 41.7 Rewe 14 (Germany) Auchan 41 Auchan, Atac 3 (France) Edeka (Germany) 38.1 Edeka, Netto, Spar 5 Aldi (Germany) 26 Aldi 16 As described, Carrefour is in Europe the mass marketing leader, very far from its main competitors. [...]
[...] CARREFOUR IN CHINA In order to fully analyse the subject, we then have to know more about the main actor, Carrefour. We will first see a general profile of the group in order to know more about its activities in the world. Then, we will focus on the key element of the subject, which it's the Carrefour's strategy to conquer a big and so different country such as China. Finally, we will draw a comparison between Carrefour and other French groups settled in China Carrefour's profile in the world Overall view of the group Created in 1959, the group has merged with Promodès in 1999, which allows it to get a predominant place on the European market, considering the food mass marketing. [...]
[...] Carrefour is also present in China through the hard discount stores DIA (225 stores on the 1st January 2006). Besides Carrefour, only five overseas-funded chain store operators entered the list, including Suguo Supermarket (seventh place), China Resources Vanguard (15th place), Wal-Mart China - Carrefour's main rival- (20th place with 48 hypermarkets stores and 0.2 per cent of the market shares), and Jinjiang Metro (23th place). The other foreign players on the market are Tesco and Park'n shop. Auchan, the other French retailer, owns 19 hypermarkets. [...]