Thanks for chenting’s introduce about the reasons of sainsbury’s enter to China, the background of China and cultural profile. Next I will say something about the risk and challenges of sainsbury’s will meet in China and make some recommendations.

1 文化差异产生的误解 陈婷已经提到了 例如握手 之前和之后

First of all, risks they will meet in China is the different culture may lead to unsatisfactory business relationships. Miss chen has been talked about the difference. For example shake hand. Before or after.

2 区域发展不均衡 虽然中国地域是统一的 但是各城市之间存在很大的经济状况的差异 经济状况的差异加剧了社会差异 例如人均收入水平 消费习惯 不同城市之间是不同的 比如一线城市 如 上海 北京 广州 这些城市的人均收入和消费水平普遍高于二线城市 如郑州 西安 济南等等 在过去 一些外国企业往往比较热衷于开发沿海省份的市场 例如浙江 江苏 上海等 因为人口多和收入高 中国的地域差异意味着sainsbury’s在进入中国市场之前要仔细考虑优势位置的选择 以便更好的针对广泛的中国市场

Then the unbalanced development between the area will be talked. Although China is unified in the geographic sense. But there is still a big economic condition gap between different cities. And the situation lead to the gap of society. Like the consumption custom is different between different cities. The first-tier cities such as Shanghai Beijing Guangzhou. These cities person income are higher than second-tier cities. In a market the size of China, geographic differences are wide. It means before Sainsbury’s entry to China, they need to think carefully about the choose of market location to target the broader China market.

3 激烈的竞争

和已经在中国建立起业务的其他西方零售商相比 例如Walmart Carrefour Tesco, Sainsbury’s是比较晚进入中国的 而且还有中国local supermarket 所以会面临不小的竞争压力 对于sainsbury’s来说 如何在激烈的竞争中脱颖而出 是个挑战

Fierce competition in China also a risk for sainsbury’s. Compared with western retailers such as Walmart Carrefour, Tesco, which have established businesses in China, Sainsbury’s is a latecomer. Also there are many local supermarkets. Therefore, Sainsbury’s will face a big competing stress. For sainsbury’s, how to stand out from the fierce competition is a challenge.

Next there are some recommendations for Sainsbury’s.

1 外国企业的共同目标市场主要集中在中国的一线城市 一些高人口密度地区 这些地区的收入水平高于全国平均水平 而且一线城市是中国最成熟的市场 就消费者行为来说 一线城市是limit experience 的外国企业进入中国最适合的试点 所以 建议sainsbury’s 选择一线城市开始进入中国市场 虽然总部在一级城市可能提供最低的风险点的市场进入,但是这同时也意味着公司会面临更高的运营成本和更多的竞争。

In recent years, foreign enterprises has been to focus on China’s Tier 1 cities like Shanghai, Beijing and Guangzhou. These cities are high populated areas and the income levels well above the national average. And Tier 1 cities are China’s most mature markets in terms of consumer behaviour, and are the most suitable testing group for foreign companies with limited experience in China. So recommending Sainsbury’s choose the tier 1 cities as the first point to enter to China market. Although being based in a tier 1 city may offer the lowest risk point of market entry, but it will also mean that the company faces higher operational costs and more competition.

在sainsbury’s在中国一线城市的市场稳定之后 可以集中开发新的市场 二线城市和三线城市 这些城市的经济一直在增长 收入也在增加 二线城市不仅仅只需要较低的设置成本和运营成本 而且居民购买力和需求也在迅速上升 比如天津 武汉 从长远来看 进入二线甚至三线市场对外国公司来说 可以使他们获得先发优势 获得长期的市场成功

After Sainsbury’s get a stability of the first-tier cities in China, they can focus on new market on second and third tier cities. The economy and citizen income both increasing. Not only Tier 2 cities have the advantage of lower set-up and operating costs, but also the increase in consumer spending power in these areas is creating a rapid growth in demand for foreign manufactured goods and products, such as Shenzhen, Tianjin, and Wuhan. Over the long term, including Tier 2 and even Tier 3 cities in their strategy can enable sainsbury’s to gain first-mover advantage in these cities and lead to greater long-term market success.

3. 对sainsbury’s来说 花时间设定客户位置和供应商 了解分销渠道是很重要的 而且要充分了解当地的监管壁垒 当地设厂和筹备运输设备 了解如何获取原材料 当地的投资政策和人力成本等因素

For Sainsbury’s, mapping out the location of customers and suppliers is very important. and fully researching any local regulatory barriers that could block market entry in specific regions. Sainsbury’s planning to set up a local manufacturing facility will be required to research a broader range of factors, such as local manufacturing and transport infrastructure, access to key raw materials, local investment policies, the availability and cost of human resources.