People keep talks about the emerging market, and one of the biggest emering marketing, China, has atrrected many international companies’s attention. Many of those companies are very optimistic about the potential of Chinese market.
Is that always the turth? Does all the famous international companies make their sucesses in the Chinese market? The answer was “no” for the fact that “this statement is too abosulute”. However, when it comes to the leading consumer electironic corperation, Buestbuy, many people are surprised by their complete failure in Chinese market and asking if the oversea companies is really able to do well in chinese market.
The bestbuy store in Shanghai after shutting down (from the newsletter called 青年报)
The failure of Bestbuy in 2011 isn’t the end of the the story. Two years later, after MediaMarket, the electronic store lauched by Metro AG, the third largest wholesale&retailer in the world, which acquisitded all the locations of bestbuy in China, deceided to shutdown themselves. That is, the repetition of the story of Bestbuy.
What causes the two big retailer fails?
The answer is that both of them does not adjusted themselves properly to chinese market. Bestbuy simply copied the pattern that it was in the united steates, even if the store made a little bit change on consumers’ experience. However, the size of targeted consumers of bestbuy is relatively small, and most people prefer to bargin with the salesclerks and buy the products through the personal conversation, rather than the feeling of “be assisted by some experters who doesn’t communicate with you emotionally.” And the supply chain of the eletronic products are also different from the pattern in the US, and the size was not big enough to compete with the local retailers, such as Suning, Gome, to reduce its distribution costs. Bestbuy do realized this but still fail to find a approperate propostion in the market, and failures on addressing those issues resulted in the loss of those companies in the competitive market.