Wal-Mart, the world-famous discount department store, operates 260 outlets in China, ranging from classic Supercenters to retail partnerships with local Chinese retailer Trust mart, and employs more than 90,000 associates. Wal-Mart’s CEO Ed Chan explained in a recent interview with McKinsey that Wal-Mart sees enormous potential for future growth in China.

Commitment to Wal-Mart, Commitment to China
All Wal-Mart and associated stores operating in China are run by Chinese general managers. The Wal-Mart team in China connect strongly with the global brand values and mission: to save their customers money so they can live better. Ed Chan explained that employees are passionate about Wal-Mart and passionate about China, allowing them to work hard to build the brand here. Regional Differences
During the interview, Chan identified the differences in climate, customer preferences, and income level amongst the various geographic regions of China. Due to these vast differences, such factors need to be taken into account by companies attempting to sell their products and services in China. This may seem to be common sense, but overlooking regional characteristics has caused problems for Wal-Mart in other countries in the past, like Canada for example. Conducting comprehensive market research would be a good way for Wal-Mart to gain insights and formulate a brand strategy that reaches target consumer groups effectively.

Trends
A major trend in China is and will continue to be online shopping and e-commerce, although Wal-Mart itself does not yet have an online business. Chan also mentioned the impressive infrastructure development in China, which he sees as the first step in paving the way for future distribution of goods and consumption in the world’s most populous nation.

Wal-Mart will encounter many opportunities and challenges as it seeks to strengthen its foothold in China. In the early stages of a brand’s development, brand differentiation and relevance should be focused on. In later stages brand esteem and knowledge will be increasingly important. It remains to be seen whether Wal-Mart will realize the same degree of success as it has in other countries, especially in such a unique and dynamic market as China.
Source: McKinsey Quarterly. (October, 2009). China's retail revolution: An Interview with Wal-Mart's Ed Chan.