Analysis On The Influencing Factors And Performance Of Foreign Retail Localization Strategy

There are some years of history for the foreign retail industry to enter the Chinese retail market,in 1992 the first Sino-Foreign joint venture in China called the First Shanghai Yaohan opened,the foreign retail industry in China has in the past 24 years.After the 24 years of retail market competition,some foreign retail enterprises have been knocked out,but others has increasingly strengthening the position in China's retail market.At present,both of the foreign retail enterprises and traditional Chinese retail enterprises,are facing the great challenge of the emerging Internet retail.But there is no denying that,the foreign retail do better when dealing with the challenge.Many foreign retail enterprises in China is on track with their expansion strategy,such as the layout of the Wal-Mart in China's second and third-tier cities is on fast lane,so it raises the enthusiasm of the traditional Chinese retail enterprises to learn from the foreign retail.Under the cruel competition of the domestic retail market,many traditional Chinese retail enterprises are looking to the overseas,eager to open up the broader overseas retail market.The development of China's retail enterprises for overseas retail market,cannot leave the application of precise localization strategy which meet the needs of overseas customers and the overseas retail environment.So it's very important for China's retail enterprises which in the fierce retail market competition to learn the transmission mechanism among the influence factors,strategies,performance of localization strategy and can apply to the domestic retail market competition and overseas retail market development.This paper,starting from an economic perspective,putting the retail industry as the starting point,systematically analysis and discuss the inner transmission mechanism among the influence factors,strategies,performance of the localization strategy.Unlike other localization strategy research,this paper emphasizes more on the empirical analysis by the application of SEM.After empirically analysis the relevance among the different localization strategy,localization performance,this paper extracts the important factors influencing the localization strategy and the strategy skills which highly correlate with the enterprise performance.Finally,this paper gives some important suggestions for Chinese tradition retail business to cope with foreign retail and expand overseas in the future.