Walmart’s Troubles in China

Walmart entered Chinese retail in 1996 and has been the symbol of modernity for the Chinese middle class. Recent years, however, have been troubling for the retail giant in $ 5-Trillion Chinese retail market- with declining profits and changing buyer preferences.

Some of the challenges:

  • The older generation preferring the unorganised sector for regular purchase over large stores
  • The younger generation moving on to ease of e-commerce (rise of JD) and quick home deliveries
  • The Chinese buying behaviour dependent on small purchases multiple times a week unlike the American habit of stocking for the long week
  • Growing sales from Sam’s Club where the earnings from per-dollar revenue are small.

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