Walmart's Marketing Strategy in China

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Marketing Write-Ups Group 4-No.1|


Past success will be the future failure.
- Ali Farhoomand, Director, Asia Case Research Centre

It seems ironical the president of Wal-Mart China, CassianChueng resigned just at the beginning when China’s government fully opened its retail market to foreign retailers in 2005; which was considered to be a declaration of failure to fulfill the retail giant’s expectation in China of Chueng. After one decade of operation in China, Wal-Mart has provided continuous negative returns to the headquarter in the US and was ranked only 20 in the top 25 chain stores in China at the end of 2004 according to China Chain Store Association.

The rise of this retail giant of US has proved the success of its unique Wal-Mart Way. The core idea of “Every Day Low Prices” combined with a set of beliefslike providing great customer service, showing respect for the individual and striving for excellence contributed the success of Wal-Mart. These managing philosophies are transported from one store to another, one state to another and one county to another until China where Wal-Mart has met strong adversaries of keeping their ends meet.With the NO.1 world’s population of 1.3 billion, China is the apple in Wal-Mart’s eye. However, opportunities along with challenges have given Wal-Mart a serious hit on the head and there are lessons to draw from if Wal-Mart wants to replicate its triumph in China.

Understanding the Chinese Consumers

Wal-Mart’s strategy to enter into Chinese market is surely a wise one. While how to do business in China is another, and trying to implement the same operation strategies in the US to China would be hazardous.

People tend to rely on past successful experiences for future actions guidelines. But applying which shall accord to the time, place and people involved. Although the giant number of population 1.3...
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