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.