The Reaction Of China's Retailing Industry To The Aggressive Entry Of Foreign Retailers

With the customer market becoming more and more mature, China's retailing sector has developed very quickly. Retailing formats have changed from street merchants, mom-and-pop stores and department stores into supermarkets, specialty stores and shopping malls; e-retailing stores are also appearing recently. The consumer goods are in great abundance and customer service is also unproved a lot. However, compared with multinational retailers, China's retailers still have a long way to go. Domestic retailers are highly fragmented and small-scaled; distribution networks remain unsophisticated; the technology is pretty low; and the relationship between suppliers and retailers also needs better coordination.According to the commission to WTO, China released the limitations on foreign-funded investments in terms of area, stockholding and quantity. Since then, foreign retailers flooded into domestic market and opened more stores on a large scale. They have better management system, large scale, low-price products and perfect customer service; all of their advantages make the domestic competition in retailing sector much tougher, so it is very pressing for retailing practitioners as well as academic researchers to analyze the challenges domestic retailers are facing and make suitable strategies.In view of this necessity, this paper tries to study the environment of domestic retailing with SWOT analysis and find better ways to cope with the challenges and survive the competition. There are totally six parts in this paper. The first part gives us a general idea about the retailing industry such as its definition, retail forms and dynamic changes. The second part introduces the development of Chinese retailing industry and analyses the present situation that domestic retailers are facing. The third part develops a joint understanding of the external environment of domestic...