China Retail Opening In Study

Some large scale retail enterprises of developed countries began extending to market overseas since the nineties of last century and international operation have been the new tendency of retail industry. Based on eclectic theory of international production, we can interpret the trend. But the practical causes are the appearance of global life style, market saturation of parent countries and keeping up the advantages of retail innovations. Moreover, China introduces foreign investments into retail field as the result of continually deepening the opening to the outside world and wishing to access to WTO. Five stages had been gone through since China opened retail industry in 1992. Although there are some problems during the process, this kind of gradual opening strategy is successful, because it fits in with the needs of foreign investments entering into China and the present conditions of our retail business.Because of the gap of retail industry between China and developed countries, its opening is certain to bring some impact to itself in managerial idea, scale and pattern, etc. Foreign investments have explicit positive effects, though, while they bring funds and advance management to us. They are also beneficial to enhance the organization degree of our retail enterprises, the welfare of consumers and enlarge China's export. We could conclude, based on analyzing the market conditions and their competitive advantages, that the impact to our retail industry will be limited.In order to gauge the opening of retail business and strengthen its competitive power, we should work at both microscopic views and macroscopic ones. As far as the former, on the one hand, complete laws and regulations should be mapped out, including improving the conditions of market access and ways of examination and approval, pragmatically regulating foreign businessmen's proportion of stock rights in joint-venture enterprises and gradually granting them national treatment; on the other hand, scientific and reasonable policies of circulation industry should be formulated to further deepen the reform of property right of commercial enterprises, foster commercial groups and strengthen the macroscopic management according to international usual rules and practices. As far as the later, instead of solely depending on the protection of national policy, retail enterprises should adjust marketing strategy, found efficient delivery system, improve commodity and service quality and lower costs, develop and use information technology, create excellent corporation culture and conduct international operation so as to enhance their competitive strength.