Development Strategy Research On Parkson Retail Group Limited

The global economy continued to recover from the worst financial crisis in decades that started more than3years age. PRC economy was arguably of the best performing major economies in the past3years. Domestic consumption will lead the economic growth in PRC over the next decade. Given the size and continuous expansion of its economy, increasing urbanization and continuous emergence of middle class, improved social safety net and an economic growth model that will be powered by its consumers, the Group believes that PRC domestic consumption market is entering into a "Golden Era" of strong growth. As the symbol of an urban culture, department stores used to take a market-dominant position in China. As a traditional path of the strong relationship, department store industry begins to face challenges from commercial real estate, supermarkets and shops. The department store industry’s position in the Chinese retail industry still showed a rising trend.Parkson Retail Group Limited is one of the few nationwide department store chain operators in China. The Parkson brand was introduced to the Beijing market in the early1990’s and has now expanded to cover30major cities across the PRC market. Through the Company’subsidiaries, jointly controlled entities and associate(hereinafter collectively refer to as the "Group"),the Group now operate46stores of which40are self owned stores and6are managed stores. Localization and consistent market positioning is the key strategy for the continuous growth and success of Parkson. They are tailoring cur merchandise assortments, brand mix and floor space allocation on a store-by-store basis to better serve our targeted middle on a middle-upper end consumers in every city that they operate. The management is confident to successfully execute the Group’s refined and accelerating expansion strategy going forward. Leveraging on the Group’s strong balance sheet, favorable business model, strong brand equity, and huge customer base from the existing Parkson Loyalty Card program, the management believes that the Group is well-positioned to consolidate and maintain its leadership position.In this paper, we propose to use the theory of enterprise strategic management as the central framework to conduct a comprehensive survey and in-depth research on the case of Parkson Retail Group. From this perspective, we hope to shed some light on the importance of the macroeconomic environment, industry economic characteristics, and key success factors in industry competition. Based on the evaluation of those strategic opportunities and challenges which Parkson have faced, as well as their own advantages and disadvantages, we manage to get the view of how to develop a corporate strategic objectives and development strategy, and implementation of the strategy.