Abstract

ABSTRACTOver the past decades the retail industry of the second largest economy worldwide has undergone a ‘retail revolution’. Yet, the Chinese market remains highly fragmented and diverse. The purpose of this paper is to look more closely at the introduction, evolution and changing role of international grocery retailers. This paper provides two kinds of added value. First, it explores the evolution of China’s grocery retailing industry. Second, it provides insight into the changing impact of international retailers in China over time. The paper is based on a wide range of expert interviews, among them leading international and Chinese grocery retailers as well as several on-site observations. The findings extend prior research by providing more comprehensive qualitative evidence regarding the challenges faced by international retailers and the influences upon them. The conclusions demonstrate the initial pioneering role of international players, especially hypermarkets, in China in the 1990s as well as their decreasing importance over time in regards to leadership and innovation. The paper emphasizes the need for retail chains to strengthen their initial advantages and superiority and to further adapt to the Chinese consumer in order to retain market share.

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