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Tesco opens own-brand China store | Tesco opens own-brand China store |
(about 1 hour later) | |
Tesco has opened its first own-brand supermarket in China. | Tesco has opened its first own-brand supermarket in China. |
The UK giant already has investments in 46 Chinese stores under the name of its Chinese partner, Le Gou, which translates as "Happy Shopping". | The UK giant already has investments in 46 Chinese stores under the name of its Chinese partner, Le Gou, which translates as "Happy Shopping". |
Tesco's new store in Beijing is competing with other international chains that are well established in China, such as Wal-Mart and Carrefour. | Tesco's new store in Beijing is competing with other international chains that are well established in China, such as Wal-Mart and Carrefour. |
Analysts said that Tesco's challenges included offering products that Chinese people would buy. | Analysts said that Tesco's challenges included offering products that Chinese people would buy. |
Market share | Market share |
Chinese customers won't think of Tesco as British, but as another Western chain Hana Ben-Shabat | |
AT Kearney retail consultant, Hana Ben-Shabat, told the BBC that opening under its own brand was a good move for Tesco. | AT Kearney retail consultant, Hana Ben-Shabat, told the BBC that opening under its own brand was a good move for Tesco. |
"Chinese consumers are very open to foreign brands," she said. | "Chinese consumers are very open to foreign brands," she said. |
"They won't think of Tesco as British - but as another Western chain. | |
"The Western supermarket chains are starting in the main cities, like Beijing, Shanghai and some others. | "The Western supermarket chains are starting in the main cities, like Beijing, Shanghai and some others. |
"I think the biggest challenge, in terms of gaining market share, is going to be how quickly all of them can move into the second-and-third-tiered cities." | "I think the biggest challenge, in terms of gaining market share, is going to be how quickly all of them can move into the second-and-third-tiered cities." |
Another challenge was understanding local consumers and their tastes, she added. | Another challenge was understanding local consumers and their tastes, she added. |
Separately, Chinese state media has reported that one of the country's biggest retailers, Beijing Wangfujing Department Store Group, has attracted the interest of two American investors. | |
Private equity groups Warburg Pincus and the Carlyle Group are among around 20 foreign firms vying for a stake in the company, the China Daily said. |
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