The Relaitonship Between Foreign Retail Enterpirses’ Form Choice, Regional Expansion And Their Performance In China

With more and more foreign retail enterprises’ market expansion inthe China mainland, the increasingly fierce competition in the retailindustry of our country make the retailers face the unprecedentedchallenge. At the same time, the motivation of foreign retail enterprises’internationalization entering the mainland China market, competitivestrategy, store image, space expansion, logistics mode and businessperformance problems also got the attention of more scholars. But inrecent years, the cases which famous foreign retail enterprises failed inChinese market because of bleak performance also occured commonly,which made the foreign retail enterprises’ performance have become thefocus of the retail industry. This article will explore the relationshipbetween business formats, regional expansion and the performance offoreign retail enterprises by combining the past research of foreign retailenterprises’ operation in China.The paper chose Carrefour, Wal-mart, Metro, Auchan, Rt-mart fiveforeign retail enterprises which entered the China mainland market at thesame stage to compare by adopting the way of case study, and thensummarizes the regularity in view of the case enterprises. The casecomparative study of this paper mainly has two key parts, namely, caseanalysis, case discussion and proposition development: case studiesmainly distinguish case enterprises’ business formats and regionalexpansion strategy types, with the growth rate of average growth rate ofsale, stores and market shares three indicators to measure businessperformance, in this process, we also added the enterprise characteristicfactors; Then in case discussion and proposition development part, wefirstly sum up the five companies’ business format choices, regional expansion strategies and business performance, and then analysis and putforward the proposition.Through the comparative study of many cases, The paper found thatthe foreign retail enterprises’ business format choices and its performancein China have no significant correlation, the regional expansion strategiescan influence their performance, and the coupling of the two strategicchoices also have an impact on corporates’ performance, but theenterprises characteristic of foreign retail enterprises in China mainlandhave no effect on performance. In the last part of the article, the authorsummarizes the main conclusions of this analysis, also the importance ofinternational expansion for retail enterprises, express the expectation ofthe overseas expansion of retail enterprises in our country.