Sunday, March 27, 2011

Why foreign DIY stores fail in China - Shaun Rein

Home Depot StorefrontNot popular in China via Wikipedia
Foreign DIY-stores like B&Q, Home Depot and Saint-Gobain are retreating from China despite the booming economy, and nobody should be surprised, tells Shaun Rein in The Age. DIY does not fit the image people want to have.
The Age:
"Do-it-yourself is not popular in China," Shaun Rein, managing director of China Market Research Group...
"The feeling in China is that if you do it yourself that means you are a peasant -- not the sturdy, manly image DIY chains have crafted in the US."...Rein said that on some of the few DIY items that do sell in China, both B&Q and Home Depot priced themselves out of the local market by charging much more than Chinese competitors.
Shaun Rein is a speaker at the China Speakers Bureau. Do you want to learn more on how foreign businesses fail in China - or can win - do ask him for your meeting or conference, and give us a call.
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1 comment:

Unknown said...

Who was surprised by this? Chinese who can afford the house won't go to a DIY store because:

1. They don't know how to fix, literally, anything. Simply not in the culture to wield tools beyond a cell phone.

2. If they did know how to fix anything, there's have nowhere to store the tools in a 110 meter apartment.

3. If they did have room, they still wouldn't do the job because all property reverts back to the State in 70 years so why bother when the reality is that most properties will never see thirty years before falling apart or being demolished for newer, larger apartments.

4. And yea, manual labor is strictly for peasants. Today's bourgeoisie are never more than two generations from peasantry and having clawed their way up from that, damn sure have no desire for a whiff of it now.

Really, should have asked an ex-pat and saved millions.