(31 May 2016) VOICE-OVER
WAL-MART IS LEARNING THAT THE SHOPPING EXPERIENCE CAN BE FAR DIFFERENT ON THE OTHER SIDE OF THE GLOBE. IN CHINA CUSTOMERS LIKE A HANDS-ON APPROACH WHEN CHOOSING FOOD.
SOUNDBITE (Mandarin), Zhong Guoyan, 53 years old, Shenzhen resident and Wal-mart shopper:
"I like when the products are fresh and the quality is good. When I come here, I have a look. If it's good, then I will buy. If it's only cheap, I won't buy it."
WAL-MART HAS BEEN ABLE TO DOMINATE THE U.S. MARKETPLACE BY KEEPING PRICES LOW. BUT IN CHINA, ITS FINDING THE "EVERYDAY LOW PRICES" SLOGAN GETS LOST IN TRANSLATION.
SOUNDBITE (Shanghainese), Zhang Miaozhun, Shanghai resident:
"If a supermarket is cheap every day, it must be because nobody wants to go buy there. Cheap things don't have a good quality. If a shop sells things always very cheap, it must be losing money. There must be a reason."
GETTING IT RIGHT IN CHINA IS CRITICAL FOR WAL-MART. ANALYSTS SAY INCREASED COMPETITION FROM AMAZON AND DOLLAR STORES IN THE U.S. MEANS CONTINUED GROWTH WILL COME FROM INTERNATIONAL MARKETS.
SOUNDBITE (English) Bryan Roberts, Global Insights Director at TCC Global:
"China is clearly going to be a big part of that future. It will be the biggest market on earth and I think Wal-Mart feels that it's an imperative to participate in what will be the biggest market."
ONE CHALLENGE HAS BEEN WINNING OVER SHOPPERS WORRIED BY TAINTED BABY FORMULA AND FOOD SAFETY VIOALTIONS IN THE INDUSTRY. TO TRY AND REASSURE ITS CUSTOMERS, WALMART IS USING MOBILE TESTING LABS TO ENSURE ITS PRODUCTS ARE SAFE.
SOUNDBITE (English), Paul Gallemore, Deputy Chief Ethic and Compliance Officer Wal-Mart China:
"This is what we have in our stores around the region to really take a number of products for safety checks: pesticide tests, that really helps give assurance that the checks that we have in place within the stores are correct."
TO GRAB GREATER MARKET SHARE, WAL-MART IS EXPANDING ITS ONLINE SERVICE, WHICH IS PROVIDING FAST HOME DELIVERY FOR FOOD AND OTHER GROCERY ITEMS.
SOUNDBITE (English) David Leung, President of Alco Electronics:
"China has skipped all the shopping mall phenomenon and they jumped right into internet selling."
HOW WALMART WILL ADJUST THEIR APPROACH IN A COMPETITIVE LANDSCAPE IS ONE OF THEIR BIGGEST CHALLENGES.
SOUNDBITE (English) Sean Clarke, CEO of Wal-Mart China:
"Unless you're on your best game, delivering great prices and great quality, you get left behind very quickly "
THE STAKES ARE HIGH. WALMART INSISTS THAT ITS SHARE IN THE BIG STORE SECTOR IS GROWING. HOWEVER EUROMONITOR SAYS OTHERWISE, CLAIMING WAL-MART'S SHARE HAS FALLEN TWO POINTS SINCE 2009.
LUKE SHERIDAN -- THE ASSOCIATED PRESS
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