Analysis On M&A In Chinese Retail Market By Transactional Enterprises

Since Dec. 11th in 2004, Chinese retail market is fully opened to the world and our retail industry keeps growing fast and steadily; department store mode is main retail mode, while other new modes are developed, and foreign retail enterprises are developing faster than domestic ones. Transnational retail enterprises rush into Chinese retail market, while transnational M&A becomes the main investment tool.Under the condition of that there is no mature transnational investment theory for retail industry, this passage firstly uses International Production Compromise Theory for reference and takes WAL-MART investment in China for example to analyze motives of transnational investment in Chinese retail market; then it is giving out Empirical Analysis of motives through overview of domestic economy, investment policy and the requirement of its own development by transnational retail enterprises.Secondly, positive effectiveness by transnational M&A are discussed from the aspects of market, economy and society, while negative effectiveness are demonstrated in two areas: the possibility to form and abuse monopoly power and the adverse influence on retail manufacturing.Finally, based on discussion of above two parts, countermeasures are put forward on how national retail enterprises survive in the furious competition caused by investment from transnational retail enterprises. The countermeasures include depending on encouraging policy by our country, making full use of domestic advantages, learning from the advantages cherished by transnational retail enterprises and improving operation and management skills continually to engine the development of our domestic retail industry.