The Great Wal Mart of China Presented By: Brittany Risser, Brent Pleasant, Patricia Moon

Opening Day in Chongqing “We can’t wait for Wal-Mart to open. We’re practically counting the days.” – Li Daping 120,000 customers By 8am: line for 85 cent rotisserie chicken is 50 people 75 checkout lanes are 15 people deep “We can’t wait for Wal-Mart to open. We’re practically counting the days.” – Li Daping 120,000 customers By 8am: line for 85 cent rotisserie chicken is 50 people 75 checkout lanes are 15 people deep

Plans for China Executives view China as best bet for long term growth – 100 cities with populations of 1 million or more – $6 trillion in total retail spending each year Will open 15 new stores in 2005 China stores grossed less than 2% of international sales – Numbers have nowhere to go but up Have 230 stores by 2009 Executives view China as best bet for long term growth – 100 cities with populations of 1 million or more – $6 trillion in total retail spending each year Will open 15 new stores in 2005 China stores grossed less than 2% of international sales – Numbers have nowhere to go but up Have 230 stores by 2009

Catering to Local Needs Chinese do shopping by foot, have smaller living spaces, and smaller refrigerators – Will buy in smaller quantities – Devote more floor space to food products Like to touch items and try out – Sales associates will take items out of packaging and demonstrate their uses Bundling products together – Eg: Red wine with free cans of Sprite Chinese do shopping by foot, have smaller living spaces, and smaller refrigerators – Will buy in smaller quantities – Devote more floor space to food products Like to touch items and try out – Sales associates will take items out of packaging and demonstrate their uses Bundling products together – Eg: Red wine with free cans of Sprite

Catering to Local Needs Offering local food favorites – Spicy chicken feet, tofu, live lobsters, turtles and bullfrogs “Retail-tainment” Space for school groups to perform Organized daily activities for the elderly Offering local food favorites – Spicy chicken feet, tofu, live lobsters, turtles and bullfrogs “Retail-tainment” Space for school groups to perform Organized daily activities for the elderly

Hurdles to Overcome Finding qualified managers – Hiring and training of 500 employees per store Finding sites for stores – State owned retailers have priority Competitors – Shanghai’s Brilliance Group (3,300 stores) – France’s Carrefour Vows to match Wal-Mart’s expansion in China store for store Finding qualified managers – Hiring and training of 500 employees per store Finding sites for stores – State owned retailers have priority Competitors – Shanghai’s Brilliance Group (3,300 stores) – France’s Carrefour Vows to match Wal-Mart’s expansion in China store for store

Wal-Mart and China Expansion plans too timid Not only open stores, but plans to purchase more product for US stores In 2005, only bought 10% products from China Will pit American workers against Chinese “My job is to find the best value for our customers…China gives us a competitive products…There is no reason for us not to buy there.” Andrew Tsuei Expansion plans too timid Not only open stores, but plans to purchase more product for US stores In 2005, only bought 10% products from China Will pit American workers against Chinese “My job is to find the best value for our customers…China gives us a competitive products…There is no reason for us not to buy there.” Andrew Tsuei

Thank you