Being able to step-up when the opportunity presents itself is a sign of a company’s solid positioning and ability to ramp from an average position to an outstanding position. In many respects, timing plays a large part in being ready to step up, but so does understanding how the local/regional game is played. Putting the two together, when the chance presents itself, means a company is likely to be getting larger sooner rather than later.
China 3C Group Inc., a leading wholesale distributor and retailer in Eastern China, offers a range of products to its over 900 retail stores. In the very near future, it will also begin to offer small electronic products in Wal-Mart China Stores. The company works primarily with electronic products as its main base but offers a full range of products to suit every need. It is noted for its far-reaching distribution network within eastern China, and its ability to respond quickly to changing trends and reported issues within the network.
In many respects, the company’s partnering with Wal-Mart is a perfect fit. The companies have a similar product base and appear to operate with the same business principles. The first steps of this particular alliance are limited to small electronic items such as small home appliances, computers and computer peripherals. How long the companies intend to keep the relationship at this level is anybody’s guess, although given that China 3C Group has a wide selection of wholesale items to offer, the two companies are likely to find more common ground quickly.
The company is fairly well established within the eastern portions of China. These regions, or provinces, are the principle centers of population within China and the regions where a new middle-class of Chinese is forming. From an economic standpoint, the rapid formation of this middle-class also leads to quick adaptation to existing and established trends found in the Western consumer. With this in mind, it is not that great a leap to suggest that Wall-Mart’s entry into the market – and China 3C Group’s association with this model (which has been successful in the West) – will also be successful in this burgeoning, Chinese middle-class. If recent economic history is an indicator, China 3C Group is positioned to be a big winner, as China permits access to a “new” Western-style retail experience.
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