浅析沃尔玛在中国本土化及对中国企业的启示.doc

山东交通学院毕业论文IntroductionWal-Mart Stores, Inc. was founded by American retail legend Mr. Sam Walton in Arkansas in 1962. Over forty years later, it has become the worlds largest private employer and retailer, one of the Fortune 500 and has been among the most valuable brands for many years. The company employs over 1.8 million associates worldwide and operates more than 6,600 units in 16 countries. Wal-Mart serves more than 176 million customers worldwide per week.Wal-Mart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumable business. Besides, it is also the largest toy seller in the United States, with an estimated 22 % of the retail toy business, having surpassed Toys R Us in the late-1990s.Internationally, Wal-Mart operates in Mexico as Walmex, in the United Kingdom as ASDA and in Japan as The Seiyu Co., Ltd. In 2006, Wal-Marts international operations accounted for approximately 20.1% of total sales. Wholly-owned operations are located in Argentina, Brazil, Canada, South Korea, Puerto Rico, and the United Kingdom. Wal-Marts investments outside North America have produced mixed results. Recently Wal-Mart moved to sell its retail operations in South Korea and Germany. Today, with over 2.1 million associates worldwide, Wal-Mart operates more than 8,400 units in 15 countries under 55 different banners, and serves more than 200 million customers per week. Wal-Mart had $405 billion in annual sales in fiscal year 2010 (FYE10, Feb. 1, 2009 to Jan. 31, 2010). The charitable giving numbers including cash and in-kind gifts was more than $512 million in FYE 10; a 20% increase over the previous years giving. In 2010, Wal-Mart regained the seat at the top of the Fortune 500, and ranked first among retailers in Fortune Magazines 2010 Most Admired Companies survey.China has become Wal-Marts second largest market in the world following America and China is gradually becoming its most important overseas market. Continuing to maintain its leadership in Chinas retail market will be Wal-Marts main objective. The analysis and study of Wal-Marts marketing strategies will provide a strong reference to people engaging in retail industry and have a profound influence on the prosperity and development of our retail industry.Before this paper, many scholars have researched Wal-Marts localization process in China. It is well known that Wal-Mart does not achieve its goal in China, and logistics system and information system are usually considered as the main reasons why Wal-Mart fails watchdogs confidence. In this paper, the author will conduct an analysis of Wal-Marts specific marketing strategy and research its 4P. In this paper, the author will analyze the reasons from two aspects: Firstly, Different objective conditions between China and US, mainly on logistic system and information system. Secondly, the mistakes that Wal-Mart made in marketing strategy, mainly on 4P-product, promotion, price and place. 1BackgroundChinese economy has grown rapidly since reform and opening up. Thanks to that, from 1994-2007, Chinas retail volume increased by 16.3% every year on average. According to the rule of WTO, in 2004, China concealed foreign retail investors regional restriction, shareholding regulation and quantity limitation. In 2005, the number of foreign retailers which were authorized to invest in China soared by 65%. Till now, more than 40 of the worlds 50 largest retailers have invested in China. Wal-Mart entered the Chinese market in 1996. The first Supercenter and Sams Club were opened in Shenzhen, Guangdong Province. Till June 2006, there were 60 units in 30 cities, including Beijing, Changchun, Changsha, Chongqing, Dalian, Dongguan, Fuzhou, Guiyang, Harbin, Jinan, Jinjiang, Kunming, Nanchang, Nanjing, Nanning, Qingdao, Shantou, Shanghai, Shenyang, Shenzhen, Taiyuan, Tianjin, Weifang, Wuhan, Wuhu, Xiamen, Yueyang, Yuxi, Yantai and Jinhua.But Wal-Mart, the worlds largest retailer, fails the people who are confident in its future in China. When Wal-Mart first entered Chinas interior area, it had hoped to achieve $100 billion in sales. However, not only is Wal-Marts $100 billion figure a distant goal, in Chinas retailing market, Wal-Marts market share has retreated. According to data of Trade Department in 2003, Wal-Mart ranked 17th in Chinese retail industry. In 2004, Wal-Mart has slid to 20th. In 2005, Wal-Mart ranked 30th. In 2006, Wal-Mart opened 78 new stores, less than its main opponent Carrefours 84 new stores. Both in 2007 and 2008, its newly- opened stores less than it planned. 2Analysis of Wal-Marts frustrationThere are several reasons that caused Wal-Marts frustration in China like localization, strategy, furious competition and the communication with government.2.1 Objective conditions2.1.1 Logistics systemFlexible and efficient logistics system is an important reason why Wal-Mart is so successful all over the world. Wal-Mart has set up a large number of stores around a distribution center. When the number reaches to a certain scale, the distribution will exert functions to guarantee its price advantage in the markets. With the help of efficient logistics system, Wal-Mart minimizes its products stock and transportation time. In addition, the operating costs are lowered. It is only takes two days distribute after receive stores orders. But this pattern not performs in China. The high efficient highway network is a key factor to this system. But Chinas highway is not well developed. Till 2035, Chinas highway length will reach eight hundred and ninety thousand kilometers which is the same level as the United States in 1950. And in China, the highway companies ask for some irrational fees that increase the transporting costs. Besides, America does not have to pay highway tolls While China impose highway toll. That increase the transportation cost.In the United States, 85% of Wal-Marts commodities are transported by its distribution center in order to reduce the costs. Till 2007, Wal-Mart opened more than four thousand stores in the United States. Every distribution center supports one hundred and twenty stores on average. Its distribution costs are less than 3% of sales volume, while its opponents are 4.5% to 5%. In Chinese market, Wal-Mart only has 2 distribution centers in Shenzhen and Tianjin. So in China, it is very difficult to build a logistics system as in US. 2.1.2 Information systems The advanced and efficient information system owned by Wal-Mart is very famous in retail industry. With the help of commercial satellites, it is convenient for Wal-Mart to realize global networking of information system. Wal-Mart has more than 4,000 stores all over the world, and in an hour these stores can take stock every commoditys inventory and sales. Because of the close connection between internal and external information system, Wal-Mart can exchange sales, transportation and order information with suppliers daily, which makes the store sales and ordering can keep pace with production. In addition, since 1980, Wal-Mart began to force suppliers to dock with its information system; this is a reason why Wal-Mart system can play an important role in the United States. But at the present stage, Chinas business environment weakened Wal-Marts information advantage, most domestic suppliers informatization level is low, and only simple data can be exchanged. At the same time, because of the policy restriction, the satellite communication systems cannot be put into use in China. So its global procurement system and global logistics system cannot work effectively; the backstage logistics system cannot closely cooperate as in foreign countries; cross-regional chain of distribution is difficult to achieve. That will greatly influence the execution of Wal-Marts low price policy in China. In the United States, Wal-Marts policy for suppliers is not only demand that suppliers product have a good rank in the same products, and claims no EDI (data exchange interface), dont come to me. In China, Wal-Mart faces another situation. It is difficult to realize its policy of purchasing directly from factory to reduce costs.2.2 Strategies2.2.1 Localization Wal-Mart ever fancied that in China it could copy its consistent management mode and culture philosophy that is used in every branch around the world, but it did not succeed. The problem here is that the system can be reestablished, but culture cannot be simply duplicated. Enterprise culture is the constantly accumulation of a companys philosophy, value and moral standard during development process, it permeates every employee ideas. So enterprise culture is the crux of Wal-Mart present management problems. Now the situation has shown that in the localization process Wal-Mart is acclimatized. We can say that if the logistics problem is Wal-Marts flaw, then in China, corporate culture is the Wal-Mart of internal injury.2.2.2 ProductWal-Mart has a variety of products，including a lot of relatively unique imported goods. That should be its advantage. But some foreign brand products in China cannot get consumers recognition, and the price is high, so its market sale is not satisfying. Secondly, the locating places of goods have problems. In store arrangement, Wal-Mart highlights leisure, but this is not applicable in China, the Chinese like to pick goods from a pile of commodities. Such as in Carrefour, goods arrangement is compact and sales atmosphere is warm. The open space of Wal-Mart cannot form a visual impact feeling on consumers. The classification of goods shelves and goods marks is not distinct, that is usually confusing consumers.On Wal-Marts own brand in China, it has 1800 brands of products in sales (these brand names have no contact with the word Wal-Mart). Self-owned brands have a relatively low price and a bigger profit margin compared with other brands. For a supermarket, running its own brands is a good way to make profits. Although Wal-Mart plan to increase sales of its own brands in China, the result is not satisfying. For example, HuiYi-Wal-Marts own brand operates food, daily goods and clean sanitation supplies business, the price is relatively cheap, but the product image is not satisfactory. Take HuiYi bottle water as an example, in order to save costs, its quality is poor. It is important for bottle water to give people the feeling of refresh, but HuiYi mineral water is hard to make the people has the desire to drink.2.2.3 Promotion costWal-Mart is holding the idea of saving every penny, so it does not spend a lot of funds on promotion. In China, most people see supermarket as a place to kill time but no direct purchase purpose, so appropriate and attractive advertising is a good method to promote sales. The entry and corridor in Carrefour, are always filled with seasonal promotional products, and in these floats promotional products stand around with the customers, Customers will follow float guidance naturally go shopping route expected. And at Wal-Mart, no promotion advertising, only occasionally labeled goods with special offer, it is difficult to determine satisfactory shopping route, so customers often stroll the whole Wal-Mart but do not find the eligible products, let alone accident shopping. Wal-Marts saving in promotion is even reflected in some celebrations. In the opening celebration of shopping plaza in Dalian Wal-Mart, the stores small advertising customers are limited to extend, and some promotional materials only can be get in the cashier if you purchase goods in the supermarket, which makes the customers who are used to multifarious promotion figures thinks that Wal-Mart is too mean. Then a bad impression be left in customers mind.2.2.4 Low price every dayThe strategy of “low price every day” causes some other problems in China. The strategy of “low price every day” arouses price war with retailers. To win this war, every retailer tries hard to push for low prices. In those companies, Wal-Mart is known for miserly. Despite Wal-Marts $27 billion of trade with Chinese suppliers, Wal-Marts push for low prices has had a negative affect on the companys relations with reputable factories in China. Many factories are starting to demand higher prices, reject Wal-Marts orders outright or subcontract the low-priced orders to less reputable factories, decreasing accountability and safety. Factories are rejecting Wal-Marts low priced orders. In July 2007, Chinas largest hosiery manufacturer, Langsha Group, announced it would no longer fill Wal-Marts low priced orders. In the last two to three years, Langsha filled more than $5 million dollars worth of Wal-Mart orders. A fast growing Chinese market and higher priced orders from Europe would displace Wal-Marts orders.Despite Wal-Marts request to buy directly from factories, many suppliers continue to sell goods to trade groups who then sell goods to Wal-Mart. Some suppliers note that the risk and logistics of working directly with Wal-Mart are not worth the price. On the other hand, Chinas distribution channels exist for a very long time; Wal-Mart has no other choice but to accept the existence of agent.In view of the bad relationship with some big factories, Wal-Mart has no other choice but to cooperate with some sweatshops. That causes a series of problems which severely damaged its reputation. Because of the cooperation between Wal-Mart and sweat factories, many factories receive fewer orders and even get bankrupt, and plenty of workers lose their jobs which affect peoples purchasing power. At the same time, the closure of stores will block many enterprise sales channels, which force many powerful enterprises to relinquish the plan of setting up shop. That creates a vicious circle. Eventually, What Wal-Mart loses is not just reputation but also its sale volume.The cooperation between Wal-Mart and sweatshop brings a series of problems and negative influence. Firstly, sweatshops never cover laborers insurance, defaults salary, evade taxes, sweat factory outside law and is the creator of many tragedies. Wal-Marts cooperating with these enterprises is actually supported the generation of tragedy. Secondly, Wal-Mart has the ability of supplying chain management, but in China it not be used effectively. As Wal-Mart and batch of sweat factory cooperate, and the informatization level of sweat factory is usually low, the commodity information sharing function which is advocated by Wal-Mart is failed to control cost.Thirdly, low-cost commodities may hide quality problems. Wal-Marts commodity (especially foods) has a variety of problems. Consumers complain that Wal-Marts discount milk have deteriorated; consumers complain that cooked food smells too smelly; meat prices is too high; the price of pollution-free product is too high, and such products have no obvious logo, and cant convince consumers; Shopping bags are not environmentally, the bags for food cannot reach health standards; Consumers also think Wal-Mart vegetables are update too slow and some vegetables have quality problems.2.2.5 Place of Sams clubSams club has a big advantage of commodity prices, but in China, people find it is difficult to identify with this sales pattern. There is a large gap between Chinas economic development level and the development level of western countries. In China, car-owning family is not as much as in western countries. And although Chinas traffic contracture is largely better than before, it is still cannot comparable with western countries like US. Sams club usually is located in the zone which is far from downtown areas, so traffic isnt convenient; therefore, even the membership store has a large preferential discount, it is difficult to attract consumers.2.3 E-commerceBetween 2008 and 2009, the number of Chinese online shoppers grows by 45.9 % and is up to 108 million and online sales nearly double to 250 billion ($36.6 billion). About 90 percent of total online sales are consumer-to-consumer transactions, though the business-to-consumer model is also successful in Chinas e-commerce market. Textile, audiovisual products, books, cosmetics, electronics, jewelry, and toys are among the most popular items sold online. Online shoppers are generally satisfied with the choice of products and convenient payment methods.Chinese government supports the development of e-commerce in the retail sector and aims to have online shopping sales accounting for more than 5 percent of Chinas total retail sales by the end of the Twelfth Five-Year Plan (2011-15). The 2009 MOFCOM Opinions on Developing E-Commerce in the Distribution Sector lay out the types of retailers targeted for development:1) Online-only retailers that provide apparel, audiovisual products, books, home appliances, and home furnishings online. 2) Multi-channel retailers that have traditional stores and offer online shop services. 3) Third party e-commerce platforms that provide consumer-to-consumer or business-to-consumer services that help small and medium-sized enterprises and individuals conduct business online, such as A. To improve the e-commerce market environment, the PRC government is turning to regulation. In addition to adopting the e-commerce model specifications and the Internet trading services specification (SB/T10519-2009)two voluntary industrial standards that guide business models and transaction servicesSAIC has also drafted Administrative Measures for Online Commodities Trading and Related Services, which were recently released for public comment. The measures specify the criteria and procedures for online business registration, emphasize protecting trademarks and company names, and task SAIC with monitoring online goods and s