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Marketing Strategy In China – The Case Study Of B&Q

2813 words - 11 pages

Marketing Strategy in China - The case study of B&Q
IntroductionB&Q the largest DIY retailer in Europe, entered the Chinese market in the year 1999 by opening a store in Shanghai through a joint venture with Home Decorative Building Materials Limited, a Shanghai based property developer (Murphy et al., 2006). Although B&Q does very well in Europe, Chinese DIY market is quite different from western markets in many aspects mainly owing to the characteristics of Chinese consumers' behaviour.Do-It-Yourself (DIY) Concept was successfully developed in western countries for several decades owing to its convenience, timesaving, economy and the interests during the process of do-it-yourself. B&Q was a pioneer in launching the Buy-It-Yourself (BIY) concept in the retail stores in China (Gilman, 2003). Even though it was a new concept in the field of decoration in China it became popular in recent years, especially in Shanghai, which is the most modern and fashionable city where people are always ready to accept new things from the outside world in Mainland China.Company backgroundB&Q was founded in March 1969 in Southampton, England by Richard Block and David Quayle. The store was originally called Block & Quayle, but this was soon shortened to B&Q. B&Q is the largest DIY retailer in Europe and the third largest in the world. It is a subsidiary of the retail group Kingfisher plc, which is listed on the London Stock Exchange. Up to now,it has opened more than 775 chain stores in 13 countries and regions in the world (B&Q history, 2004).Literature ReviewB&Q's International Market Entry in ChinaWith the increase of Chinese people's living standard, more and more of them have incremental ability, intention and desire to improve their homes, which offered a good environment for foreign-invested DIY chains' (like B&Q, IKEA, etc) emergence in the Chinese market.B&Q started to globalisation of its business around the world in 1994. The first B&Q store was opened in Taiwan in 1996. General Manager was appointed to establish B&Q in China in 1997 to enter mainland. After the establishment of a joint-venture, the first B&Q store opened in Hutai, Shanghai, on June 18, 1999 and so far it has established 52 stores in Mainland China, 9 of which are in Shanghai. In the year 2002 it opened its regional office and it was also ranked no. 1 by China Retail Association. In the year 2005, B&Q acquired 13 Chinese DIY stores of OBI from a German-owed competitor, and commit itself to further expand in China in future (Murphy et al., 2006).B&Q China operates from large Warehouses, which tries to cater for the needs of both home owners wishing to improve and decorate their homes as well as trade and professional customers. The stores stock around 40,000 different products and have large flooring, tiling, bathroom, kitchen and paint departments. Furthermore, a huge choice of Electrical, plumbing, doors and...

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