Empirical Research On The Location Distribution Behavior Of Foreign-funded Retailers In Yangtze River Delta

In western countries, the Retail is called"The industry rely on location", the key of the success of the Retail is the"location". Since our country retail industry fully opened in 2004, Foreign-funded retailers began to accelerate the expansion of the market in our country, as more and more foreign-funded retailers into china mainland, it not only bring advanced management experience , but also bring advanced location methods.Firstly, this article reviewed the existing literature about the location choice of foreign-funded retail enterprises and the related factors of influencing. Mainly from three angles of foreign-funded enterprises retailers,the location choice of foreign-funded enterprises and empirical study. Expected to seeking the support points for the next qualitative and quantitative analysis.Second,On the basis of the theory about the retail enterprises location choice and previous studies, the article qualitative analysis the factors influential the foreign-funded retailers to choice location. Grouped the factors which influencing the foreign-funded retailers choosing locations into four categories: Macroeconomic factors,Cost factors,Investment environment factors,Institutional factors. Subdivided into eleven sub-factors: Level of economic development,Regional consumption levels,Retail market size and market potential,Labor costs,Infrastructure costs and supporting industries,Market liberalization,Market competition,Demographic and Cultural factors,Political,Legal,Regional business policy.Again, foreign-funded retail enterprises in the Yangtze River Delta region as object, described and analyzed the characteristics of the development process of the foreign-funded retail enterprises in the Yangtze River Delta region. With emphasis on analysis the location choice of the foreign-funded retail enterprises in the Yangtze River Delta region, provide a realistic basis for the next analysis.Then, using the panel data of 2004-2009 years, with variable intercept model with fixed effects for GLS weighted regression hybrid data processing method, empirical analysis the foreign-funded retail enterprises in Yangtze River Delta location choice behavior. When the institutional factors in the model without the introduction of index cases, the empirical results show that since the full liberalization of the retail industry (2004-2010), the foreign retailers invest in the Yangtze River Delta region is mainly affected by the spending power of local residents and regional infrastructure facilities level and regional opening up level . there is a strong positive correlation between them, these conclusions are in line with the expectations. Not consistent with the expectations hypothesis is that the empirical results shows the number of retail enterprises and the number of foreign retailers have a strong positive correlation, that means the foreign retail enterprises in the Yangtze River Delta are rapidly seize the market, does not think too much to the local Business competition. Instead consider a performance of a good business climate and the better developed retail market. The study also found that compared to the nominal wage level , the investment companies will pay more attention to the quality of the regional labor. All this shows that since the full liberalization of the retail trade, the foreign-funded retail enterprises investment behavior acts more mature in the Yangtze River Delta.Finally, on the basis of empirical research, the paper summary and forecast the foreign enterprise location choice behavior in Yangtze River Delta, and this paper give some suggestions for the future development of the foreign retailers in china.