After operating in China for less than six years, in 2011, both Home Depot and Best Buy, two major big-box retailers from the U.S. announced the close of their stores in spite of the increasing size of the Chinese middle class. Based on this backdrop, I wrote a teaching case study “What Is Up With The U.S. Big-Box Retailers In China? The cases of Home Depot and Best Buy“, which was published at China Research Center.
Both cases illustrate the typical challenges facing western retailers success in China. The big-box retailers not only need to face the challenges from their local competitors and the different practices in Chinese retail industry, but also to adapt to Chinese consumption culture. Facing the complex operating environment, both companies need a long-term vision and commitment to strengthen their brand image and create values for their customers.
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