Walmart: competitive crossroads in the chinese retail market

Abstract

Structural reforms in China have led it to record average growth rates of 9.1 percent from 1999 to 2017. Because of this position in the world of technological advances and the driving force of the global economy, it can be distinguished as the trend towards the new world economy, posed by Braudel (1986). In this context, China’s economic growth is also promoted through domestic consumption. To support this provision, the Chinese government encourages private investment in retail. The multinational Wal-Mart Stores, Inc., has been in China since 1996. However, it does not manage to consolidate its presence, which is expressed in the low productivity and minimum competition in the Chinese community. These two factors are the result of low sales revenue, reflecting the insufficient preference for the merchandise, establishments and logistics of the Walmart China subsidiary. Contrary to the efforts of coupling to the tastes and preferences of the local consumer. Therefore, the objective of the work involves studying the productivity and competition of the retailer Walmart China in terms of sales revenue. The method is analytical-descriptive. The document is supported theoretically and empirically. The latter with company data and own calculations on productivity and competition.