Wumart Stores (Wumart) founded a privately owned, local Chinese retail chain operation by a private entrepreneur in 1994. The decade after its founding, the company saw a small suburban supermarket grow to be the seventh largest chain retailer (over 500 stores) in China. By using regional positioning in the market, focusing on one of the richest regions of China – Beijing, the implementation of low-cost expansion strategies take the opportunity to state-owned assets restructuring, use multi-format … Read more »

Wumart Stores (Wumart) founded a privately owned, local Chinese retail chain operation by a private entrepreneur in 1994. The decade after its founding, the company saw a small suburban supermarket grow to be the seventh largest chain retailer (over 500 stores) in China. By using regional positioning in the market, focusing on one of the richest regions of China – Beijing, the implementation of low-cost expansion strategies take the opportunity to state-owned assets restructuring, use multi-format store development in both the most mature and fastest growing segment, and make the first investment information technology among its domestic counterparts, Wumart establishes strong competitive advantages that set it apart from its domestic competition. On the 10-year anniversary, China fully opened its retail sector to foreign participation. Compete vying for a share of the major consumer China market, but after it was hampered by many regulatory barriers to foreign retail giants are now on a level platform by their large financial resources secured strong industry knowledge and management know-how and a long-term commitment to China . The market is becoming more competitive and is expected to experience massive consolidation. In the end, only the best performers are to survive with any appreciable extent. The test is Wumart management strategies to maintain its competitive advantage in the face of challenges from domestic and foreign giants colleagues to carry on the success story, and eventually realize his goal to develop an eternal national brand.

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from
Hong Iris Wang,
Ali Farhoomand,
Zhigang Tao,
Dongya Li
Source: University of Hong Kong
19 pages.
Release Date: 19, January 2007. Prod #: HKU635-PDF-ENG
Wumart Stores: China’s answer to Wal-Mart HBR case solution