Expansion of Japanese retail into China and the formation of merchandising capability

Case study of retailers in Beijing

Abstract

While the expansion of the manufacturing sector has slowed down in recent years, overseas expansion of the retail industry has intensified. The market in China is forecasted to record high growth and has become a battleground for large retailers from every country. This paper explores the expansion of Ito Yokado and 7-Eleven in Beijing on the basis of local surveys conducted in 2009 and analyzes success factors for Japanese retail industry expansion. The concept of merchandising is used as the analysis framework and particular attention is given to operational activities regarding merchandising capability of retail companies.