Beware of the Flood of Gold: The Development and Prospects of Foreign Capital in China's Retail Industry

Author: Chu Baotai
Publisher:
Publish Date: 2003-07-01
Features: The growing effective demand of China's 1.3 billion population provides unlimited business opportunities for the retail industry. This is not only an industry that can drive the takeoff of the domestic economy but will also become an engine for revitalizing the international economy. In the competition that has already unfolded in China's modern retail market, how to achieve self-awareness and understanding of opponents, and what strategies should be adopted to achieve victory over the strong with the weak? This is what retail industry peers want to know, and it is the question this book aims to answer.
The nature of capital is not always gentle, especially when it has already gathered momentum and is about to engage in market competition with rivals. None of them are willing to give up without a successful outcome. Capital has the instinct to devour weaker competitors. International commercial capital has a more fierce devouring capacity than industrial capital. With the vast amount of monetary capital in hand, they can set up procurement centers and retail points everywhere, controlling the critical passageways from manufacturing factories to consumers, and dominating the intermediate links of the social and economic operation. Once they deem it necessary, they can stir up trouble, like the wind sweeping leaves, sweeping across the entire market. If traditional national commerce is unprepared, the fate of most enterprises is likely to be tragic: either being subsumed by them or going out of business.
Facing the overwhelming tide of international commercial capital, what policy should China adopt—should it "block" or "guide"? This the story of the two ancient Chinese water control heroes, "" and "," whose eight-generation saga is well-known. The current situation is that the Chinese government's policy first builds high dams to block the fierce flood outside, but suddenly opens the, letting the accumulated flood rush. In the face of such a massive shockwave, if measures are not effective, what will be the outcome for national commercial capital?