China's Retail Reality
Posted by Dan on April 2, 2008 at 05:28 AM
Great post up over at Jeremy Gordon's China Business Services Blog on the reality Best Buy has been facing in trying to bring its retail concept into China. If you are thinking of bringing your retail business into China, read Jeremy's post, entitled, "Retail Reality." It concludes with two oft-heard tips on doing business in China, but two points well worth reiterating:
-- government policy and regulation can change quickly, with a big impact on business-- board level support from HQ is a must
Check it out.
Comments
I can't leave a comment on the site with the article so I will burden this site with my thoughts instead.
Although I can not speak for Kingfisher because I have no idea what the corp is or stands for even after reading the entirety of the article, I can speak with substantial knowledge about Best Buy. It's success in the US is no doubt due to its ability to offer mid-range, affordable electronics and appliances to the general population. In China, if it offered the same products they would not be new or innovative, nor would the prices be comparatively cheaper.
Also the proliferation of fake electronics and knock offs contributes a lot to the success of Best Buy, I'm sure. The only thing I could see working that was merely touched on in the article is their Geek Squad service. 24/7 personal, drive-to-your-house service to help you out when your electronic malfunctions? I think that has a chance...
Overall, lesson learned. China's consumers are a tough crowd to please...
Posted by: something_picasso | April 2, 2008 8:02 PM