Market study : convenience
store in China
We know
Tesco as a practicer of the «test and learn "... And after some
hesitations Tesco Chine takes the offensive by opting for the convenience store
in Shanghai according to market research in China. A targeting plan urban has directed
«weekly purchases ". The network of convenience stores Tesco China being
mainly based in and around Shanghai.
Convenience store to rise
again in China?
Implanted
since 2004 in China (but having opened its first convenience store to its own brand
only in 2007) Tesco in since undergoes some inconveniences and necessary
regulations of adaptation in particular in 2012. Tesco is not the only one - Wallmart,
Carrefour also was suffering - but at the moment only Tesco decide to abandon this
strategic market.
What is
rather logical considering the cultural difference and considering the business
in China. The import of products was very difficult and, for example, the
stores have difficulty in differentiating them assortments, and in implanting
their own brands sign. And for Tesco it is rather important 40 % of the
assortment in UK is store brand, compared with 10 % only in China. The impacts
are financiers, the value creation being difficult on the local products, and
of differentiation vs the local networks.
E-commerce or convenience
store in China?
By this
e-commerce evolution of closeness Tesco (N°3 of the world distributors) thus
wishes to offer to the Chinese households the possibility of being delivered
fresh products, fruits vegetables food and products of uses everyday life.
It is well
thus about «on-line races". What is interesting it is that to begin, Tesco
wants to depend on nobody by assuming herself its own logistics, for the
control of processes and costs.
In test
version in learn, the customer catchment area will be limited to Shanghai «internal
districts ". In particular screw the mythical convenience store Tesco of
Shanghai street very similar to one trade traditional Chinese.
