| Chinese commercial sector has begun its efforts to attract foreign investments since 1992. During this period, many international renowned commercial companies came to China and established their businesses in this country, among which are Walmart of the United States, Carrefour of France and Metro, a German-Swedish joint-venture, etc. Until December, 1999, twenty-one projects of retail joint-ventures had been ratified by the State Council of China and 227 by the local governments in various ways. All the foreign investments, with their advanced techniques and ideas in management and marketing, have not only caused a rapid impact on the traditional state-owned commercial corporations, but also quickened their steps toward their modernization.Now that a competitive situation has been formed, in which there are all kinds of ownership and various forms of corporations, the state-owned companies are faced with increasingly serious challenges. On November 15, 1999, the government of the United States and the government of the People's Republic of China signed an agreement allowing China to become a member country in WTO, the World Trade Organization. Hence China is expected to have a seat in WTO before long. As a promise ,Chinese government has declared that all the restrictions against the foreign intervention in Chinese commercial sector will be lifted within 3 to 5 years after it has entered WTO. In addition ,the foreign corporations will also have the right to deal with retail businesses, wholesale businesses and other special businesses approved by the government, excluding some certain businesses that are prohibited by the government. The foreign investors will be allowed to incorporate themselves with state-owned Chinese companies to establish joint ventures or to set up their own enterprises in China. The territorial restrictions and the restrictions of the amount of their investment will also gradually be lifted. It is no doubt that a more rapid impact is at hand. How could the state-owned companies survive the increasing competition by means of reforming their management and adjusting their strategy to the new situation is the overall problem of these companies.Chengdu is the commercial hub in southwest china, bearing a reputation for its commercial tradition and commercial environment. During the past 7 years since 1993 when Pacific Department Store, a Taiwanese retail company, entered Chengdu market, Chengdu has become one of the cities that contain all kinds of retail enterprise. In Chengdu there are department stores such as Chengdu People's Department Store (Group) Co., Ltd. ,Huanian Department Store,Itoyokado and Wangfujin Department Store etc.; and there are specialty stores such as Pacific, Parkson and Renhe Spring etc.; and there are supermarkets, such as Wuhou, Carrefour and Trust-mart etc.; and there are chain stores, such as Red Flag and Huhui etc.; and there are Wholesale Clubs, such as Pricesmart and Metro, a company on its way to enter Chengdu market. In addition, there are also Super Centers, such as the Conference and Exhibition Center. The age when a few state-owned companies have the domination in retail business has ended and a system of multi-polar and multi-centered competition is under construction. After the foreign commercial corporations entered Chengdu, due to their advanced ideas and techniques in management, they have won a great profit and their percentage in the market is yearly soaring.In contrast, Chengdu People's Department Store(Group) Co., Ltd., the leader of retail companies in Chengdu, though keeping on the top in retail business in southwest China, has partially lost its market percentage and has showed senility in its development. In the past few years, its increase in sales scale has slowed down and has even stopped. As the eighth bestseller of all retail companies in China, the Group has encountered problems with universality. This article, from both a macroscopical point of view and a microcosmical point of view and on the base of a study on the fa... |
PDF Full Text Request