| Chinese government has abrogated its limitations on foreign-funded investments in the retailing industry in terms of area, stockholding and quantity from Dec.11, 2004. Besides that, the wholly-owned enterprises of foreign retailing companies have been allowed to set up. Those means Chinese retailing industry has entirely opened the door to the foreign companies. The foreign retailers will accelerate their developments and extensions greatly in China. There are still so many weaknesses in domestic retailing chain stores. For example, the lower industry degree of concertration, improper layout for developing new stores, poor managerment skills, unhealthy relationship with suppliers, wanting more specialists of the industry, the shortage of fund, undeveloped logistic and information systems, etc. These weaknesses will make domestic companies be at the inferior position　within the competition with foreign competors, even the foreign retailers will be at the dominant position in Chinese retailing industry.Through the analysis of the macroenvironment and industry forces, we can find that domestic retailers are in great disadvantage for competing with foreign competitors. For example, be short of government support, facing the continuing leaving of persons with ability, and the impacts with the advanced conception brought by the foreign competitors. Obviously, the foreign retailers will enter the stage of fast growth.This article consists of four parts.The first part comes with the basic knowledge of retailing industry and chain store mode as well as their histories. The second is the current status of Chinese retailing industry and chain stores. The third is the analysis of the macroenvironment and Chinese retailing industry. The last part is the emphasis of this article. Based on the analysis of the case studies about Wal-Mart and Wu-Mart, this article tried to find some effective competition strategies for local companies from eight aspects and provides serval sound advice. |
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