Group BShannon Bengston, Antonio Castro, Jose Corcía, You Lu, Alexandra Martinez, Marcela Martinez, Stephanie von Bassewitz

The French are coming…

to China

Madrid vs. Shanghai

When? 1995(Beijing)How?• One stop shop• Low price fresh goods• Self service• Free parking

Key Success factor: • Localization• Distribution centers

Carrefour

The environment is very noisy, crowded and every single space is utilized

Family – Happiness – Wealth & Security

Customers coming from all directions and meeting in

Carrefour.French colors.

Europe Shanghai

Carrefour in Shanghai is located close to big

shopping mall in the city centers

Location & Store display

It has 35 stores in Shanghai

Large superficies and wide isles

Location & Store display

Every space is utilized to display products

Layouts separated by categories

Location & Store display

Shanghai’s Carrefour format

Shanghai’s Carrefour format

The product offering is localized and

undifferentiated

Product & Price

The food is really fresh

Additional specialized products are in Carrefour’s

portfolio

Product & PriceImport products are

separated in a more premium and less visited

area

Consumer Promotions

Service

• Self service• Customer oriented• Sale is not aggressive

Learning's

•Focus on facilitating the live of the consumer•Additional services are offered to improve customer’s experience (delivery & online shopping)•Stores locations in different neighborhoods are more appealing to Madrid’s citizens

•Success is based on the deep knowledge of the local customer•Localization of the product offering is the clue to enter to the market•Low-price strategy is very important to compete in this market

Opportunities

•Include different product offering from abroad•Location in more premium places such as shopping malls

•In the future, develop new and more sophisticated service and selling tools (online sales, home delivery)•Improve the physical shopping environment

In the futureM

adrid

Shan

ghai

Bernard Arnault, Chairman, LVMH

We opened the first LV Store 1992 in Beijing. It was attached to a luxury hotel and generated high sales quickly. Nowadays LV owns 12 stores in China, the

amount of people buying LV is increasing, as well as the buying power. However we face the problem that LV

bags and shoes are the items most widely copied. Counterfeiting is a continuous battle but hopeful as China develops, they will enforce the laws more to

protect the intellectual property rights of all brands. In spite of this, sales of foreign luxury goods in China are

booming despite annual incomes that average just $1,000 per person.

Location & Ambience Similarities

Differences-Location & Ambience

Store Layout & Displays-Similarities

We found the following were standard for the 2 stores:

Store Layout & Displays- Differences

Product Variety-Differences

Emotions Triggered

Shannon’s Experience in Madrid:“I was walking home from school with my sports clothes and book bag

and I was shocked to find that I felt out of place and intimidated when I walked into the Louis Vuitton store in Madrid. My broken spanish and my American “look” made the salesforce less eager to assist me. Furthermore the store is very small, with only 2 other customers at that moment, therefore I felt all eyes were on me. Although many things caught my attention, my first impulse was to try on sunglasses. Basically I wanted to get out of the store without knocking anything over, so I would say my experience was intimidating, however I feel they have done an excellent job at creating an aspirational brand”

Emotions Triggered

Marcela’s Experience:“ I intentionally dressed up that day to measure the reactions of the sales

people. I started to look around and found the staff friendly and helpful, although not too aggressive in their sales effort. I asked for assistance to see some wallets that were in a glass casing and the salesperson was pleasant and not overwhelming. I spent some more time in the store but was not motivated enough to make an impulse purchase, although the service was excellent and the store is enjoyable”

Emotions Triggered

Stephanie’s Experience:“ I recently visited the Louis Vuitton store in Shanghai. I noticed here in China,

many women in that area were carrying LV bags, giving me the impression that luxury brands are very important for the Chinese. Once in the store, I had the feeling that luxury items would be more affordable and more common, due to the large size of the store, the high traffic and the fact that everything else here in China is much more affordable for Europeans. However, I soon realized that the items were even more expensive than in Europe. Also, I felt more free to look around, without being observed by the sales staff, although they were friendly and greeted me pleasantly”

THANK YOU!

谢谢！