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Crossroads in Mexico and in China: Reasons of success and failure

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  1. The story of a drink like no other
  2. The specifics of a controversial product
  3. A high-end positioning
  4. An atypical Communication Mix
  5. Appendices

In Annecy, Marcel Fournier operates a "big" store that was founded in 1822. By 1946, during the trips that he conducted for the U.S., he could observe the development of supermarkets and hypermarkets located on the outskirts of cities.

Back in France, he joined Louis Defforey, a trader, to create a small food distribution company self-service. The two future founders of Carrefour found success but felt that they could go further.

While the latter was content to sell groceries in poorly constructed sheds, Fournier and Defforey agreed to create a supermarket in the U.S. It was bright, charming, and offered products at a discounted price.

The first supermarket was opened in Annecy in 1959. "At first I wanted to call this store 'Agora'", said Marcel Fournier. "And then I told myself that people might think I was selling cats."

The building should settle where the supermarket is located; at the intersection of five streets in the central district of Parmelan and hence the name " Crossroads " the Enlglish translation of the French word ?Carrefour?

Carrefour is a world leader in the distribution. However, the approach is focused and differs from one continent to another. In particular, Carrefour has opted to develop only in countries where it can become a local leader

Regarding the Asian continent, Carrefour began this new venture in 1989 and saw immediately a strong growth. It has all the necessary requirements to meet a challenge, it is the first international retailer to have established in Asia.

The group was able to have a very progressive approach, country by country, targeted where there was growth. As it has been seen, Carrefour now operates in six countries and regions on the continent, Taiwan,Malaysia, Thailand, Indonesia, Singapore and China.

The new store openings are on the rise. The group has won the confidence of the population through its diversity, its price and quality of its products, as well as detailed analysis of local needs and responding to it.

The many European competitors may become a threat, but the multitude of Carrefour and the experience of the Group currently provide it an undeniable force. This allows it to capture more customers, and this is partly due to a loyal customer base

Moreover, Carrefour has, in Asia, to give another image and it has also become a social activist. Indeed during the tsunami, the group has released emergency aid of 300,000 euros to help the disaster victims in southeast Asia.

In Mexico, Carrefour has failed as it had to face severe competition from local and regional distributors, and especially from the large group of Wall Mart. But it has quickly taken against the findings and, true to its strategy of not to stay where it cannot be a leader, the group has removed itself from the market, almost immediately.

The Group has fully managed the differences in behavior between cultures and this did not prevent the European group to conquer the world. Carrefour takes a decisive position that grows day by day in the world of distribution.

Tags: Carrefour-hypermarkets, success in China and reason for failure in Mexico

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