Wal-Mart China Needs a Facelift
Simple Observation of Western Retail Giants in China
Even tough China is leading the world of e-commerce shopping platforms. Ground floor retail sector is still alive than ever. Many years ago tried successfully to jump in the online shopping bandwagon; Wal-Mart in China is losing sight from retailing fundamentals. They should learn from their adversaries and stick to the core of the game.
Using McDonald occupying prime real-state strategy, Wal-Mart buys places in the city’s busiest districts. Tesco however is focuses on a business management strategy. Combining Chinese sense of merchandising with modern customer service techniques, Tesco has built an excellent business in china, while Wal-Mart jams its shelf with products and hires only few staffs.
No matter the strategy, all retail business eventually comes to few fundamental success factors. Customer demands, price competition, service excellence, store management are some of the few to mention. In the retail business, most of the wrong decision made in the corporate level, and many right decisions come from grass roots type of tactical operation.
Wal-Mart’s in Shenyang, for instance is poorly managed warehouses in a good location. Shelf space, product placing, store flow needs extra attention. They could also hire more staff to manage sections in the store. When customer try to find products in Wal-Mart’s tightly spaced rows, they are less likely to find staff to help.
Tesco on the other hand has enough space for 2.5 shopping carts to pass by between main rows. Not only primary goods have a section staff, but also accessories, stationaries have section staffs to help sell products. The stores are well lighted comparing to the Wal-Mart stores and tactical managers keep a good job on store presentation.
One of the hardest factors for retail business is a Human Resource. Both Tesco and Wal-Mart seem to manage this efficiently. However, noticeable customer service, basic sell's and team building training can be seen in Tesco employees. For instance, when a costumer seems to search for a product in a given section, within less then 30 seconds of looking and remaining in the self area, a staff will show up and recommend a certain product. After acknowledging the costumer preference, the staff again changes the recommendation to suit the costumer need. Up, down, cross, add sells techniques can be seen in the Tesco staffs.
Not to mention overhead cost per staff is significantly high, Tesco type of store management requires great deal of tactical brilliance, training, and ground enforcement. Keeping the staff smiling to provide good service costs money, but it’s a common sense merchandising craftsmanship. Wal-Mart should learn few tricks and stick to the fundamentals.
In the past two years I usually go to Guohuikang, a Shenzhen local super market because of its convenience. But indeed I like CR Vangard very much, because they manage to display a huge variety of goods in a pleasing way.
What is your favorite, super market in china? Why do you go there?
Yeah, also in the West, "green" product is big deal. Sustainable products goes to vigorous inspections before they make that kind of claims.
I really would like to see efforts from Western owned Chinese businesses to be more sustainable.
I think my take here is though consumer's objective is to maximize utility and keeping cost at a lower ebb but the business environment and high employee performance plays a significant role for quality commodities by attaining high customer centricity and producer total revenue in terms of goods and service delivery in the long run.so for effective,efficient and sustainable quality commodities in a business environment do matter not withstanding the cheap stuffs.
Retail markets have their value, Ariunbold. Someone like me, who is hard to fit would have a hard time buying shoes and clothes online. It is necessary for me to try things on to assure proper fit. Also, think of this: while it is convenient to shop online, what you see is not necessarily what you get. Another thing is the safety of your financial information. Overall, internet shopping is safe but you can never be too cautious against hackers and/or identity thieves. Therefore, with due respect to your views, IMO it is best to head out to the store, try what you buy and pay cash for it.
I do love the vino that sells in China though, the other day bought 2007, french wine(because I don't the name of wines) for like 150 Yuan. 2007 supposed to be a good year or something, but I just like the fact it was French and 2007
Pushy (sells motivated) staffs are awesome for a business, but could be little irritating.
How effective to higher pushy staff in the ground floor? 1.8 to 2 billion dollar effective. Chinese retail consumer good market's average y-o-y is that much in static. But in the long term, I think the e-commorce will replace most of the physical consumer retailers in China.
If a sense of "houmous" should be added to a standard qualification for job interview, then I would not get an employment anywhere
Please see Monty Python's "Job interview" for a reference.
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