Ows localization woes
ge from the US style customers’ consump. “Best sellers in retail mostly cosmetics and emphasizes clothes. It e its clothes.” y’s are old-fashioned, t suit Asian people,” ite-collar worker surthe Global Times on Wednesday. “For what it sells, I think the prices are too high. I can find something exactly the same but at a lower price.”
Liu Dingding, a Beijing-based industry analyst, attributed the company’s failure in China to being unable to catch up with the fast-changing and diversified demand of Chinese consumers. “The market in China is changing much faster than those in the US and Europe. These Western giants seem to react a bit slower than their Chinese counterparts.”
Macy’s isn’t the only overseas retailer that faced problems in China. British retailer Marks & Spencer announced it would close its Tmall flagship store in January 2018 after closing all its physical stores in China in 2016.
Other foreign brands, including Mango and Best Buy, have made headlines in recent years owing to their localization struggles in China.
Despite the difficulties, Liu Dingding said that more foreign brands will grab the opportunity to enter China, with the rapid rise of the domestic middle class and the nation’s policy of reform and opening-up.
Experts noted that with the right strategy, foreign brands could still make a fortune in China.
“Securing a local partner is one way – for example, WalMart and Carrefour’s partnerships with Tencent are good options to localize and learn from Chinese experience,” Liu said.
“They have built up operating experience with years of success back home. But before applying this experience in their Chinese operations (they should) respect Chinese culture, hire more Chinese executives and try to adjust the way that they have operated for years back home. That’s the first step to gaining a foothold in the Chinese market,” Liu Dingding noted.
in China is uch faster n the US and