China has a copycat Walmart that is blowing the big-box retailer out of the water.The retailer, Sun-Art, has succeeded in impressing customers where competitors like Walmart and Tesco have failed, because it understands the Chinese consumer, according to a report by Bloomberg.
“They’re giving them the feel of local street markets with hairy crabs laid on table tops and discounted hot-pot ingredients,” Bloomberg writes. “While Sun-Art might, for instance, offer a discount on soy sauce, a Western chain in China may put Coca-Cola sodas on sale.”
Business is booming: Sun-Art reported a 75 per cent jump in profit this year and has 12.8 per cent market share, compared with Walmart’s 11.2 per cent.
In addition to offering crabs and soy sauce at a discount, the retailer has tanks of fish which customers can select and have killed and de-boned on the spot. Many Chinese street markets offer similar services.
Sun-Art also hires local managers and employees who are more attuned to what the customers want.
Understanding the local consumer is an incredible asset that even Walmart can’t compete with.
Sun-Art isn’t the only Asian spoof of a Western Chain. There are also fast food restaurants and retail stores that mimic KFC and Apple.
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