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Essay / Consumer and Retail Trends in China
Table of ContentsRelationshipStrategy and ManagementChallenges and OpportunitiesImplication and ContributionConclusionRelationshipSeveral studies have highlighted that maintaining good relationships with stakeholders is essential for retailers. However, stakeholder perceptions are different depending on the region, according to some comparative studies. In the Chinese context, researchers suggest that companies should focus on the relationship with the supplier, the government and the customer, and the relationship with the government is vital for multinational companies, while in the Western context, the relationship with government is important, but it is not emphasized as much. in China. Furthermore, researchers suggest that management in the Western context should also consider the relationship with employees, which is barely mentioned in the Chinese context. In the Western context, researchers have used the term "relational network" to describe relationships with stakeholders, specifically referring to relationships with government, partners, and potential partners. In the Chinese context, instead of calling it a "relational network", some Western researchers use the term "guanxi network" to distinguish the uniqueness of the Chinese network from that of Western cultures. The term “guanxi” has a pejorative meaning that implies corruption from the perspective of cooperating companies and the government. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essay First, the Chinese government should be seen as two distinct parties: a central government as executive director and many local governments as as executioners. A plan adopted by the central government may not be fully implemented by the local government. This baseless plan is due to intentional non-execution by local governments or unintentional execution due to centralized bureaucracy. Therefore, it is possible that MSCs may encounter obstacles or devalued benefits as they expected from the central government's announced plan. Second, local suppliers are of two types: state-owned enterprises and non-state-owned enterprises. Public companies have serious bureaucratic problems. No state-owned enterprise also values guanxi networks to some extent. Maintaining good relationships with these suppliers has direct impacts on operational strategies of low cost, quality and flexibility. Stable relationships with suppliers can help supermarket chains pursue their goals of quality and flexibility. A contrary example is that Walmart came down hard on its suppliers and forced them to cut costs. This damaged its relationships with suppliers. Therefore, many high-quality suppliers are switching to other domestic companies. Managing a robust and dense “guanxi network” will allow MSCs to access new business opportunities, experience fewer obstacles from government, and access critical resources. When it comes to customer relationships, researchers agree that good customer relationships have some positive effect on performance. Some researchers argue that customer relationship research lacks robust measures to accurately indicate the extent to which good relationships contribute to good brand and performance outcomes. Others argue that branding in the sales industryChinese retail is not as efficient as in other regions. Rather, they suggest that Chinese customers are loyal to “low prices and value” rather than “well-known brands.” Strategy and Management Appropriate Strategy and Management Quality plays a vital role in the successful performance of the MSC. The most frequently discussed aspects are market differentiation, innovation, localization, strategic alliance and flexible strategies. Studies have examined the correlation between environment, performance, and strategies using quantitative, qualitative, or mixed methods approaches. Most studies have been conducted in the form of interviews or surveys and few studies map the company's archived objectives (e.g. financial situation) to its strategies. Remaining articles discuss literature or case studies on general topics such as technology and innovation and describe existing challenges for the operation of MSCs in China. In short, the case studies demonstrate that flexible strategies adapted to the institutional environment are essential. A single stable strategy is not an appropriate approach as the institutional environment is continually evolving. When it comes to specific strategies and tactics, marketing differentiation has been highlighted in many country-specific studies. Competition in many traditional sectors is becoming fierce and tense. Therefore, distinctive market positioning or product differentiation can alleviate competitive pressure by avoiding direct competition. It is particularly effective in industries where products are very price sensitive and where products are not very distinctive. Furthermore, localization and strategic alliance constitute essential models for MSCs to integrate into the local institution. Many MNC cases have shown that many multinational companies failed in China because they failed to acclimatize to the local environment. Finally, the importance of supply chain management is well recognized in the retail industry. It is the system that a business uses to deliver demanding goods to the right customers at the right time. A supermarket brand with a well-organized logistics and supply chain strategy has a distinct advantage over other market players, while supply chain optimization serves as a competitive tool. This gives the retailer a huge cost advantage, especially compared to smaller retailers. There is no doubt that an effective supply chain strategy is essential for any MSC and domestic business.Challenges and OpportunitiesThis part synthesizes the results of previous analytical work, approaching the research questions on a solutions-focused basis. Changes in the business environment can be seen as opportunities and threats. There is no doubt that the growing awareness of consumerism among future generations and the transformation from a manufacturing-led approach to a consumption-led approach encompasses new marketing opportunities. Service-based industries are expected to grow in the near future. First, previous studies on Western countries have indicated that mergers and strategic alliances are common in supermarket sectors and that the government generally implements strict processes to avoid monopolistic competition. On the other hand, many venture capital firms, with or without roots in retail, have invested in China's supermarket industry, resulting ina merger of national companies with greater scale and more resources and a wild expansion of their activities nationally. Competition is worth considering. Second, government involvement can be positive or negative. The government encourages foreign investment and the development of the retail sector, and protectionism is weakened in modern periods. However, bureaucracy and business remain unresolved problems for domestic and foreign businesses. In addition, large domestic companies usually have close relationships with the government, which will cause MSCs harm in competition. Finally, an interesting conclusion is that the use of newly emerged and popularized technologies such as big data, data mining and e-commerce. wallet, have been studied in both Chinese and Western cultures in recent years. Researchers suggest that using these technologies quickly and effectively could help supermarkets get a few years ahead of the competition. Many creative retail formats cooperating with these technologies have emerged. For example, Amazon created cashier-less stores and Alibaba created a food retail format integrating online e-commerce and offline stores. Many other innovative formats are merging in China and no current research has examined these practices. These new formats are still in the market review stage. The future of retail formats is unpredictable. At this point, academic research regarding retail format innovation lags behind practice. In order to compete with domestic companies and proactively adapt to a changing environment, MSCs must respond accordingly to the environment, its positioning and situations. Researchers have suggested that three critical success factors specifically for MSCs in China are a robust “guanxi” network, flexible and dynamic strategies, and high-quality senior management. In a stable communist context dominated by a single party, the government is heavily involved in market activities. The execution of policies and regulations may not be effective, but most of the time it is extremely effective. Therefore, responding quickly to policy and regulatory changes is a fundamental capability for MSCs. Furthermore, the corruption-compliant government system should not be omitted. This can disrupt fair competition in the market and this phenomenon is particularly visible in lower-tier cities. To mitigate risks caused by corruption and bureaucracy, MSCs could establish links with governments or ally with local partners who have a strong “guanxi” network in China. There is a wide range of well-developed and practiced strategies aimed at achieving different goals. for commercial purposes in a particular situation. He is convinced that flexible strategies are suggested for MSCs. A mono-fixed strategy will not be effective for a country in a period of development, within several cultural groups, a vast territory and a huge territory. Chinese markets are very fragmented and should not be treated as a whole. For example, first-tier cities (e.g. Beijing, Shanghai, etc.) should be treated as well-developed areas. Its economic size and consumer purchasing power are as strong as those of developed western regions. Second-tier cities (Hangzhou, Nanjing) can be.