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The retreat of international retailers in China is nearly complete.
As one of the first international retail corporations to enter mainland China, Carrefour from France has had several of its "old stores" put up closure announcements approaching the end of 2021. At the beginning of 2021, it closed 14 stores in just 2 months.
American retail giant Wal-Mart has closed 107 stores in China in recent years. The first store it opened in China was closed on December 7th, 2021, which has saddened some local consumers.
Before Carrefour and Wal-Mart, a large number of foreign-owned retail outlets have chosen to take their losses. These include companies from around the world. They have been retreating from the Chinese market, almost exclusively from 2018 to mid-2021.
Both Chinese consumers and those in the retail industry can feel that this is an end of an era, and the future is full of uncertainty.
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Interessante YT comments:
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I think there are multiple reasons 1. More neighborhood small grocery stores are available 2. Taobao is convenient and super competitive - delivered to your door 3. More neighborhood specialty stores available - fruit , bakeries , restaurants etc. 4. Traffic congestion and traveling time is becoming increasingly a problem 5. Covid discourages movement of ppl. 6. Demographics - as older ppl are doing the shopping , they prefer doing it in their neighborhood
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Several years ago, Walmart hired investigators to check out why the costs were so high and quality so low on their local purchases. What they found was that the Chinese Mafia and local police were cooperating to send foreign stores the products that local markets had rejected. The prices charged however, were for top quality. The Mafia had also paid off or bribed the store financial officers and warehouse personnel. This resulted in charges for goods never delivered and payments for products never delivered.
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I remember that Carrefour had all their stores in Yunnan province closed and a large fine imposed. The heinous crime was labelling normal chicken as organic! A bit rich from the land of Sanlu tainted baby milk powder and gutter oil.
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One more reasons many malls are closing is, in the past, walking in the mall with family or couple visiting malls or friends meeting at caf้ in the mall is in trend, but not so anymore, youngster preferred buying online and stay online rather than going out. No more gathering at the mall.
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1. You do not rent out these retail spaces with the primary aim to make high profit. You rent these spaces out to make the city attractive, to contribute for creating an interesting and attractive neighbourhood, and liveable spaces for people. That will earn the money for the city long term, not high rents.
2. All these foreign retailers were only allowed into China, because they were 60 years behind. They needed foreigners to teach them how to operate this sort of companies, and that quickly.
3. The CCP will not allow foreign companies to reap the harvest on long-term. They will find ways to take away what you build up. Once you have done what they wanted you do, they won't give you the nice bright smile anymore and you can go. Don't waste your time and money. I experienced that myself, too.
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what you described was happening way back before the 2000's...a kimberly-clark manager who worked in a china plant in the late 1990's described local chinese managers actually stealing machinery from the company and starting a production plant right next to the kimberly-clark plant to make the same knock off products and needless to say going to a chinese court did not help at all because the court always rule in favor of the local chinese who was stealing from the foreign company..the manager was giving a lecture back in 2003 on doing business in china and his conclusion was that he was just training the local chinese to take over the business in china...in the short term this strategy may work for china but in the long term it will hurt china when other country start banning chinese company from doing business just like
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Online shopping. It's online shopping. You can order everything online and delivered for nothing in China, so there's little point to go to any stores. You can even get fresh fruit and other groceries direct from farmer, no middleman needed.
[ Bericht 2% gewijzigd door slashdotter3 op 26-06-2023 10:12:42 ]