Case ID: HKU670     Solution ID: 28044

Carrefour China Case Solution


When in 1995, the company opened its first ever Carrefour outlet in China, they were able to have an outstanding start in the Chinese retailing market. It was only 1999, when they earned the name as the third largest Chinese retailer and ranked second in the franchising sector. This followed a series of achievement for the company, when in 2000 its sales in China were able to cross US$0.99 billion and it was only 2004, when their outlets reached a tremendous figure of 62, thus accounting for 51.2% relative increase since the previous year. It was not surprising at that time if its total outlets were proudly equal to the total outlets jointly owned by the two largest retailers, Wal-Mart (43) and Metro (23). However in the recent times competition has matured in the Chinese market, as many local and multinational retailers have grown in presence. Interestingly these retailers have managed to capture the in-land and second tier areas where Carrefour is yet to make an origination. The question is whether Carrefour will continue to enjoy its historical achievements in the coming future too?

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