Abstract

The case discusses the entry and expansion strategies of French retailer Carrefour, in the Chinese market. Carrefour began its Chinese operations by forming joint ventures in the year 1995. The company entered into direct deals with the local governments of various provinces in China to get the approval to set up its stores. By the early 2000s, Carrefour had emerged as the largest foreign retailer in China. The company considered China to consist of several small markets instead of one large market, and accordingly employed strategies for operating in the country. Most of the products sold in Carrefour stores were procured from China. The store formats, location, and the products sold were customized according to the local preferences, and the store managers were empowered to run the stores according to the local requirements. The case also highlights the challenges faced by Carrefour in China. It discusses the competition that the company faces in China especially after Wal-Mart's acquisition of Trust-Mart. The case includes a note on the Chinese retail industry.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study and analyze the entry and expansion strategies of Carrefour in China
• Evaluate the strategy of operating in China through several joint venture partners
• Examine Carrefour's expansion strategy into China, where it considered the country to be several small markets rather than one huge market
• Understand how Carrefour brought changes in its store formats and operational methods to cater to the needs and preferences of consumers in China
• Examine how Carrefour implemented the localization strategies in China

Keywords

Carrefour China, Globalization, International Business, Localization, Retail Industry in China, Entry Strategies, Expansion Strategies, Decentralization, Autonomy, Chinese Laws and Regulations, Store Management, Supply Chain Management, HR Practices, Wal-Mart in China, Carrefour China, Globalization