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Unit 7 Business Strategies Text A Text B Text C Text A Text A Words and Expressions Notes Exercises Text A Introduction For both domestic and foreign retailers, China is a market of unprecedented opportunity. But it is turning into a battleground. Text A Ready for warfare in the aisles ①Move out of Chinas big cities or even into the suburbs, however, and shopping habits become more traditional as income levels fall. At a ②Vanguard supermarket in an unfashionable part of Shenzhen, manager Hu Fan tries to satisfy traditional and modern tastes. Text A ③On the ground floor people net live fish and pick through tanks of frogs, trussed turtles and glistening chicken feet. But next to the unwrapped meat (shoppers traditionally like to handle meat to test its freshness), are plastic-covered pieces with reassuring expiry dates. Shoppers can choose from 130 types of fruit, twice the number found in a typical market. Text A As organised retailers move to smaller cities and further inland to escape competition and soaring rents, they face huge variations in taste and extreme price sensitivity. This complicates distribution further and raises costs. Wal-Marts buying teams arrive in a city five months before a new store opens to research local habits: “There are thousands of uniquenesses,” says Wal-Marts Mr Hatfield. People in Zhejiang like toilet paper “as rough as sandpaper”; the top seller in Kunming is spicy chicken feet; and Shandong natives Text A like to buy whole steamed pigs faces to slice up and dip in soy sauce and vinegar. Operating profitably in poorer markets often means switching to smaller stores with a narrower range. Xu Lingling, chief financial officer at Lianhua, says that whereas big foreign players, such as Carrefour, have taken top sites in large cities, Chinese chains may be better suited to mid-sized towns where productivity is lower. ④And these may suit a different approach—such as the franchising of McDonalds, KFC and Tupperwa
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