HRM 594walmart vs carrefour part 3Carrefour adopts a strategy of differentiation across all its global markets, with a focus on locally sourced products, especially regarding fresh food. This is particularly the case in China, where around 9 percent of items are sourced domestically. Similarly, around 90 percent of its products offered at Wal-Mart's Chinese stores are produced in China. Carrefour
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HRM 594
walmart vs carrefour part 3
Carrefour adopts a strategy of differentiation across all its global markets, with a focus on locally sourced products, especially regarding fresh food. This is particularly the case in China, where around 9 percent of items are sourced domestically. Similarly, around 90 percent of its products offered at Wal-Mart's Chinese stores are produced in China. Carrefour has developed direct sourcing agreements with Chinese farmers, with the creation of direct procurement centers, and the company acquired in 2007 a 160 square kilometer plot of land where up to 40,000 farmers will produce food for the company. A greater emphasis on partnerships with farmers enables Carrefour to have better control over food quality, and to reduce buying costs.
Adapting Product Assortment
Product assortment varies across China's regions, reflecting major variations in average incomes.
Differing logistics strategies
The two companies have adopted different logistics strategies, Carrefour adopting a decentralized approach, which it justifies by the fact that there is no national logistics system in China, while Wal-Mart focuses on building a nationwide distribution network, based on three distribution centers.
Environment issues on the agenda
Corporate social responsibility (CSR) has become a more important part of retailers' strategy, as a result of greater customer and media scrutiny over ethical standards of retailers and product manufacturers alike, leading to numerous environmental initiatives among leading retailers.
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