Chinese Wal-Mart

Recently Wal-Mart Stores has revamped its legal practices in Asia and started to acquire more Chinese markets. Wal-Mart received many negative attentions in the previous years regarding the safety issues with the Bangladesh factory and the violation of laws in India. However, they are continuing with their plans to invest in China. The company said that they will put down $82 million dollars to upgrade Chinese stores.

In my opinion Wal-Mart is facing many obstacles because most Chinese consumers do not perceive Wal-Mart as a high-end foreign brand anymore. They can still recall the incident in Chongqing where ordinary pork was mislabeled as an expensive organic one. Additionally, Chinese consumers are also aware that Wal-Mart stores are built like warehouses with poor shopping environment. This could hurt Wal-Mart’s image as a sophisticated foreign brand. Hence, Wal-Mart faces many threats in the legal department, as well as its brand positioning.

However, there are some existing opportunities for Wal-Mart such as the online shopping services. Recently, online stores like Yihaodian and Taobao are receiving a lot of positive attention.  Chinese consumers enjoy the convenience of online shopping. If Wal-Mart can sell its products through Taobao or open their own online store then their sales will increase dramatically. This is also an opportunity for them to restore their image as a foreign brand with superior quality.

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