Excerpt from: China Supply Chain and Logistics Strategy
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| February 21, 2008 | | Both retail giants are competing for market share in China | Wal-Mart and Carrefour opened 23 and 30 new hypermarkets – store floor space over 5,000 square meters, respectively last year. This is part of the 10-year battle for both retail giants to compete for market share in China. The first-tier cities, such as Shanghai, Beijing and Guangzhou, are becoming saturated, both giants saw the opportunities in second- and third-tier cities. Nearly 40 percent of Carrefour stores are in second-tier cities. Carrefour and Wal-Mart have a slight different methodology for the future expansion. Wal-Mart is focused on acquisition of other retail chains while Carrefour prefers the organic expansion with the growth of its own business. China’s retail market is highly competitive. In order to maintain the market share and stay competitive, companies must have a solid supply chain to provide goods at the lowest cost and shortest lead time. | | |
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