Case3 - C ase 3- Retailing in China Charles Le Shova Guruna...

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Case 3- Retailing in China
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Charles Le Shova Guruna Hassan Raza MGT 3020 Michael Madore April 7, 2008
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Retail consulter, Sarah Harrison was asked to go to Suzhou, China to give valued merchandising advice for a large department store, First Department Store . The department store was extremely large (8000 sqft) spanning over 6 floors, it was heavily staffed, disorganized and felt cramped despite the overall size of the store. The staff that were present did not speak any English despite the stores front sign “Welcome Foreign Visitors,” nor did they present themselves in a professional manner. She was later informed that the staff quota was a requirement by law and the employees lacked motivation or training due to the security of their jobs. She spent 6 days in China speaking to the general manager of the department store were she gathered valued information about the stores management style and goals. The stores long-term goals were to become the top department store in Suzhou and eventually all of China. From the information gathered, it seems that the problem may be employee motivation. Although the store seems to be disorganized and unwelcoming to Sarah, it doesn’t deter any customers from lining up and purchasing items. It may be that the cluttered messy store appeals to Chinese people in making them believe they are getting the best deal based on the condition of the store. Ask yourself? How many times have you been to a liquidation or dollar store where it was completely
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organized like a larger retailer? Has it stopped you from going there? It’s likely that if you’re searching for deals, you’ll put up with the condition of the store regardless how bad it is. For Chinese culture, it is common to shop at markets and multi-vender locations where organization is not a priority. Class isn’t a decision- altering concern for the culture, more accurately, what’s important is simply attaining the cheapest price. It is mentioned that “consumers window shop in the pleasant environment of their store, but then do their buying wherever they can get the best price.” Furthermore “ The Chinese shopper operates according to the adage
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Case3 - C ase 3- Retailing in China Charles Le Shova Guruna...

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