2. Reasons to why Marks & Spencer wants to open stores in China
3. Necessary knowledge before entering the Chinese market
4. Consequences of opening a multinational store after another in China
China, a country filled with potential?
Improved international relations, a constant expanding economy and increased foreign investment, all this, makes China a country filled with potential for multinational companies. One of the companies who have grabbed this opportunity is Marks & Spencer. This essay will discuss why Marks & Spencer has expanded to China, why it is necessary to know the Chinese ways of doing business, and the consequences of the opening of one multinational store after another in China.
Marks & Spencer’s sales have fallen with six percent in the last three months, and have had their worst performance in three years. By opening a store in China they hope to obtain positive results again. The store is placed in Shanghai, and is on 40,000 square feet, which makes it the biggest store they have ever opened in Asia. For Marks & Spencer it was a major opportunity to expand in China, since the British products are very popular in among the Chinese people.
The opening is a part of long-term plan; they hope to attract China’s increasingly well-to-do people. If everything goes as planned, Marks & Spencer will open another 50 stores in China, hoping that one out of eight will consume their products.
When companies like Marks and Spencer want to do business in China, they have to be aware of the Chinese ways of doing business, before entering their market, or it could ruin it all for them.
Chinese people value proper behaviour very highly. When you start a meeting you shake hands and give a small nod with the head. You have to avoid not shaking their hands to energetic, or they will intercept is as aggressive. Nor do they like physical contact, like putting your arm around someone’s shoulders, or patting them...