Retreat by Macy’s sho

International retailers should localize their operating models and adapt to local conditions and demand, instead of just doing what they’ve done for years back home, if they want to succeed in the Chinese market, analysts said.

These outsiders have to learn from their Chinese counterparts, who have tried and true operating models that could help them gain a further foothold in the country, analysts noted.

The comments came as US-based retailer Macy’s stopped taking orders on its online store on Chinese e-commerce platform Tmall.com on Monday. This is Macy’s only sales channel in the Chinese mainland, so the move means a full retreat from a direct presence in the market.

The decision follows the closure of the US retail giant’s Chinese official website in June, and it also ends a joint venture set up less than three years ago with Hong Kong-based Fung Retailing to explore China’s retail market.

An online customer service employee of Macy’s told the Global Times on Wednesday that “We made the decision since our contract with Alibaba’s Tmall will end on December 31, and we welcome customers from all over the world to order on the Macy’s US official website.

“We won’t have any other sales channel in the mainland,” the person said.

Liu Hui, an analyst at Uni-retail Business and Management Co in Beijing, told the Global Times on Wednesday that the US company’s retreat from the Chinese mainland market mainly reflects its poor localization strategy, which failed to attract local customers.

“Macy’s operating structure is not flexible

“The market changing mu than those in Europe.”