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Marketing strategy play a most vital part for each organisation in order to getting success in the market. Various types of marketing strategies are existing in the retail industry which can be utilised by retail companies in order to getting desired success. In the report the company has been chosen which is Morrisons organisation which is a British multinational organisation and want to enter into China's retail market. In this report, country's retail industry environment will be discussed by using PESTLE analysis. In addition to this, the study will be discussed about various market entry options and market segmentation approach to sustain in China's market. Beside from it, the report will also be discussed about porter's generic strategy to understand the market.
PESTLE Analysis China's Retail Industry:
In terms of China country, there are numbers of political factors existing in the nation which is making great impact upon its retail sector in the country (Cronin-Gilmore, 2012). Several types of legal trade rules and regulations are presented in china legislation provision which is furnishing effective guidelines to its retail sector to doing their business activities in respective manner.
The retail sector in china is not considered to be a prestigious industry by the Chinese government and is therefore not sanctioned like the heavy industry sector in the UK. China does not see a need to restrict the development of the industry. It can be said that, there are number of opportunities arisen towards retail sector growth in the nation. In addition to this, modernisation is also important factor for country's retail industry, the national government of the country is making changes in the share of its traditional street markets. The major reasons for doing so it to expand retail networks of chain supermarket into western province in China. Chain has open market system and its government allow several multinational brands in the Chinese retail market (White, 2010). It is increasing opportunities for several foreign brands in the sector to enter into nation.
Economic growth of the industry also play major role in for increasing growth of the country. In this regard, GDP growth of the country is frequently increasing in the nation because of several types of corporation making contribution in growing up the industry in Chinese retail market. However, domestic demand is to remain strong for future of the industry in country as well as, in case of high consumption of retail product and services in market, there are huge scope of various retail business to enter into country's retail sector. In addition to this, taxation policies and rate of the corporate income tax in China is 25%. Several domestic and foreign companies are working in retail sector and they are filling taxes as per government policies towards corporate field (Wensley, 2010). Apart from it, large number of fresh productions are being done in the nation and it is very essential for to find local suppliers capable of furnishing product and services as per international quality of standard in business. Thus, there are huge scope of entering into Chinese retail market and getting appropriate growth in firm. Economic growth of the nation attract several types countries in the industry.
There are several types of social prospect in the country which is making impact in the growth of retail sector in the nation. In has been seen that, China is one of the biggest population growing country around the world and they have large numbers of consumption of each products and services. So it can be said that, they have high volume of using of various retail products and services which making great impact on the growth of industry in China. In addition to this, other social element is, people of the country belongs from different-different regions and they have different types of culture which affect their buying behaviour in market. In modern time, it has been seen that, people aware to use of products and services as per modern needs in the market (Baker and Saren, eds., 2016). Apart from it, peoples are health conscious and they used to figure out various issues which incurred in their health, so they use several types of grocery and retail products which provided by premium brand in market.
In case of retail industry of China country, it can be said that, various types of technological factors are making great impact on productivity and profitability of the industry in this sector. In retail sector, several types of distribution technologies are implementing in various retail outlets and they have opportunities to raise in their productivity by using technological mechanism in industry. In retail industry, there are various types of technological tools are being using by organisations in respect to furnishing retail product and services in effective way. In China, several types of innovation is being generated by nation's people. Suppliers channels must be connect to the distributor and company in proper manner so that can easily sell their products. In this case, Various types of IT tools are using by organisational professionals in case of making engagement with each other