Abstract

The cases discusses, UK based home improvement retailer, B&Q's foray into China. B&Q entered the Chinese market in the year 1999 by opening a store in Shanghai through a joint venture with Home Decorative Building Materials Limited, a Shanghai based property developer. At that time, the Do-it-Yourself (DIY) concept had not gained popularity in China. Overcoming the initial challenges, B&Q was able to establish itself firmly in the Chinese market. B&Q modified its stores to suit the Chinese consumers and introduced the concept of 'Buy-it-Yourself.' The company's growth coincided with the rapid infrastructural development in the country, and increased activity in the housing sector. The rapid growth of the Chinese home improvement industry led several leading international companies like IKEA to expand their operations in the country. By late 2006, B&Q faced stiff competition from foreign as well as local companies like OrientHome. The case examines the entry and expansion strategies of B&Q in China and how the company is positioned to face increasing competition in the Chinese home improvement industry.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study and analyze the entry and expansion strategies of B&Q in China
• Examine B&Q's localization strategies in China
• Appreciate B&Q's efforts to amalgamate its global best practices with locally viable strategies in China
• Evaluate B&Q's efforts to train the local personnel in the company's best practices
• Analyze the competitive position of B&Q in China

Keywords

B&Q China, Home Improvement Industry, World Trade Organization, Do It Yourself Concept, Entry Strategy, Growth Strategies , Joint Venture, Retail Expansion, Foreign Direct Investment, Supply chain management, Leading Retailers in China, Every Day Fair Prices, International Trade Practices