Retail Management: A Comparative Analysis of Australia and China

This report provides a comparative analysis of retail management practices in Australia and China. It begins with an introduction to the retail systems in both countries, highlighting the role of consumption power in economic growth. The report then delves into the differences in retail market structures, including the number of retail businesses and employees. A key section explores the potential size and profitability estimations, comparing profit margins and return on shareholder funds. Furthermore, the report addresses the challenges faced by the retailing industries in both countries, such as the need to adapt to societal requirements in China and employee management issues in Australia. Cultural considerations impacting retailing, including language, technology use, and workplace diversity, are also examined. The report concludes by emphasizing the strong economic relationship between Australia and China and the influence of international product markets, along with the importance of strategic actions for increasing pricing power and total margins in retail operations. References to support the analysis are provided.

Retail
Management
Australia and China

Introduction
 The retailing system used in Australia is point
of sale (POS) to offer knowledge from expert
for multiple industries to allow solution in an
exclusive business model.
 In retail, the rise in consumption power helps
economy to grow continuously with large
share increment in distribution segment of
profit-making.
 The retailing system of Australia is better
than China.

Differences in retail market
structure
 In Australia, there are 140,000 retail
businesses are operated approximately
with the population of 1.2 million
employees for contribution in economic
output(Australian Government, 2011).
 There are differences in price by local
and overseas retailers.

Cont. …
 In China, the retail
businesses are 549,000
approximately with 15
employees involved in
each business(China
Business Review,
2010).
 They grow in the retail
sales with rise of local
income reinforcement.

Potential size and profitability
estimation
 The larger retailers in Australia
appreciate high profit margins in
comparison to China with the
satisfaction of return on shareholder
funds.
 The profitability is higher in Australia
than China comparatively depending on
sales and size of the company(Zhu, et
al. 2010).

Potential problems facing
retailing industry
 In the retail market of China, challenges
faced are linked to the fact that companies
due to society need to ensure making
plans to address the retailing requirements
for the present and future generation.
 In Australia, the challenges faced is linked
to the employees management of the
retailing companies due to different
cultures.

Cultural consideration impacting
retailing in China and Australia
 Chinese language and culture makes
the difference across the globe creating
problems in achieving
operations(Uncles, 2010).
 With the help of employees, China
achieve higher productivity and
quality(Chang and Luan, 2010).

Cont. …
 Australia is a developed
country and prefers
technology use for their
operations related to
retailing(Azizul Islam
and Jain, 2013).
 They contribute in the
modern culture and
diversity at the
workplace(Henker and
Henker, 2010).

Conclusion
 There is a strong relation between the
economy of Australia and China.
 The channels are critically influenced by the
international product markets in China.
 Due to which, the slow-down in growth would
falls over to Australia with the increase in
competition.
 Retailing helps in increase of pricing power and
total margins by taking corrective actions and
strategies applicability while doing operations.

References
 Australian Government, 2011. Economic Structure and Performance of the
Australian Retail Industry. [Online] Available at:
https://www.pc.gov.au/inquiries/completed/retail-industry/report/retail-industry.pd
f
. [Accessed on 21st September 2019]
 Azizul Islam, M. and Jain, A., 2013. Workplace human rights reporting: a study of
Australian garment and retail companies. Australian accounting review, 23(2),
pp.102-116.
 Chang, E.C. and Luan, B., 2010. Chinese consumers' perception of hypermarket
store image. Asia Pacific Journal of Marketing and Logistics, 22(4), pp.512-527.
 China Business Review, 2010. Understanding China’s Retail Market. [Online]
Available at:
https://www.chinabusinessreview.com/understanding-chinas-retail-market/.
[Accessed on 21st September 2019]
 Henker, J. and Henker, T., 2010. Are retail investors the culprits? Evidence from
Australian individual stock price bubbles. The European journal of finance, 16(4),
pp.281-304.
 Uncles, M.D., 2010. Retail change in China: retrospect and prospects. The
International Review of Retail, Distribution and Consumer Research, 20(1),
pp.69-84.
 Zhu, Y., Li, Y., Wang, W. and Chen, J., 2010. What leads to post-implementation
success of ERP? An empirical study of the Chinese retail industry. International
Journal of Information Management, 30(3), pp.265-276.