5th China domestic retail facing increased competition from Wal-Mart and Carrefour China with the opening of a fast-growing retail market in January 2005. In response, Beijing Hualian developed a new "Family Store" format focused on the growing middle class of the country, consisting of young consumers with more fashionable tastes. As hypermarket, Hualian family include both food and non-food lines, but differ in design and product and brand mix, which will be conducted. Results of a pilot store (renovated hypermarket in Beijing) have been encouraging, with revenues and profits, and customers spend more on each visit. company must decide how quickly deploy Family stores in China. Strategic issues include forestalling competition moving quickly in the new cities, the balance of the purchasing power of multinational retailers who were buying goods for export Beijing Hualian understanding of the rapidly changing domestic market, access to capital for expansion, and the training and retention of Chinese talent management.
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by David E. Bell Source: Harvard Business School 27 pages. Publication Date: November 14, 2005. Prod. #: 906403-PDF-ENG