Retail Management Report: Comparing Retail in China and Australia

This report provides an overview of the retail industry in China and Australia, highlighting the impact of cultural values on consumer behavior and market dynamics. It begins with an executive summary of the Chinese retail market's growth, driven by traditional grocery retailers, internet retailing, and omnichannel strategies. The report then delves into the cultural aspects influencing retailing in both countries, contrasting the roles of men and women, and societal values. It discusses how these cultural differences affect consumer product choices, purchasing power, and the overall retail landscape, including the importance of group versus individual interests and the influence of age on consumer behavior. The report concludes by emphasizing the need for investors to consider cultural barriers when entering these markets and provides a list of references supporting the analysis.

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Retail Management
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Executive Summary
The Chinese retail industry massively grew by 2017. This was contributed by the
rebound in value growth in traditional grocery retailers, home shopping, hypermarkets and
supermarkets as compared to the year 2016. This was also contributed by the way the internet
retailing grew in China. Some players in the supermarket industry tried to boost the
experience of the shoppers by having medium seized outlets situated at the retailers neigh
hood. They also decided to offer free delivery to shoppers after buying goods(Gong, 2007
p.52 ). However, because of the high competition retailers came up with an Omnichannel
strategy. Some mixed retailers such as the Parkson retail group together with the Hefei
Department store group also came up with some online shopping platforms to provide
different product and value-added services to the consumers(Chan & Lin, 2010 p,109).
Despite the increase in sales non-grocery retailer could not outperform grocery retailer.
Grocery retailers increased their sales by 2017 because of the double-digit growth of
warehouse clubs and stores. There was a variety of good which was being offered at pocket-
friendly prices, and they were more attractive to customers looking to do lifestyle shopping.
Warehouses also attracted consumers by giving them a good product portfolio which also
included groceries at competitive prices.
Consideration of cultural aspects affecting retailing in China and Australia.
Human society has some values which are retained from one generation to another. At
an individual level, we also take these values and make them be some enduring beliefs which
help us to tell what acceptable in the society thus affecting our behavior. These values are
what are referred to as cultural values (Babin & Darden,2015 p,45). Cultural values usually
influence consumer behavior such as the product choice, complaining and impulse buying.

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Cultural values are also said to influence some cognitive constructs that usually affect some
behaviors. This construct consists of attitudes, information processing, and decision making.
In China, men are highly regarded than women. Most women used to be sold like
cows. They were mainly involved in doing housework and taking care of children and
parents. However, this is not the case in Australia. Women in Australia are said to be tougher
even than men. It was the first county that gave women the right to vote and also to enter
parliament (Kacen, & Lee, 2011 p.88). Most women in this country work in the private
sector. This is because married women were being encouraged to stay at home. However,
after some years, married women were also encouraged to get into the public sector (Babin &
Darden, 2015 p,108). In The family unit, boys are not valued more than girl nor are girls sold
to other families. This has greatly affected the retailing industry in both countries. For
examples, in China, you find that women do not have a lot to spend as compared to men.
Furthermore, the fashion and cosmetics industry in China may not be making a lot of sales as
compared to Australia. Lastly, you find that a lot of sales are made from the retail industry in
Australia as compared to China (Gong, 2007, p. 238)
On the other hand Chinese are thought to be communist while Australians are
capitalist. Thus Chinese people usually prioritize the interests of a group rather than one owns
interest. This has affected retailing in these countries because many people look for product
that have been accepted by the society rather than unique products (Gong, 2007p. 68).
Because of this those who seek unique products in this country are seen as outsiders and may
be alienated from the society. Thus in this country new companies are thought not to be doing
well as compared to those companies that have been there for a longer time and whose
product have been accepted by the society(Kacen, & Lee, 2011 p.90). In Australia the case is

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different because people mind their own problems rather than the interests of the society.
People tend to buy unique products from different companies and people. Thus it is a good
place to invest even if the company has not existed for long,
Lastly the younger people greatly respect their elders in China. If an older person asks
you something, open is not supposed to argue with him. In Australia the case is different
everyone has a right to question everything that does not seem clear to him (Chan & Lin,
2010 p, 77). Thus in China, retail industry customers may not be well informed about the
product they are buying. Their bargaining power and complaining towards a product is also
very low. This is not true concerning the Australia retail market. Many customers are well
informed of the product they may choose to buy and they can always ask questions regarding
a product.
However, despite these huge cultural differences between these two countries, the
retail industry in these countries is doing well. These markets are attracting customers
globally. However, investors have to be keen on cultural barriers when venturing into these
two markets.

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Reference list
Babin, J. & Darden, W. R. (2015). Consumer self-regulation in a retail environment. Journal
Of Retailing (online) 71(1), 47–70. Available From:
https://www.sciencedirect.com/science/article/pii/0022435995900128 (Accessed 24th
September 2018)
Chan, T. S., & Lin, G. (2010). An empirical analysis of consumer decision processes in the
The people's Republic of China. Journal of International Consumer Marketing (online) 4(4),
33-48. Available From: People's Republic of China. Journal of International Consumer
Marketing, 4(4), 33-48. https://www.google.com/search?q=Chan%2C+T.+S.%2C+%26+Lin
%2C+G.+%281992%29. (Accessed 24th September)
Gong, W. (2007). Chinese consumer behavior: A cultural framework and implications.
Journal of American Academy of Business (online) 3(1), 373-380. Available From
:https://books.google.co.ke/books?
id=pdjRAQAAQBAJ&pg=PA132&lpg=PA132&dq=Gong,+W.+(2003).
+Chinese+consumer+behavior:

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+A+cultural+framework+and+implications.Journal+of+American+Academy+of+Business,
+3(1),+373-380 (Accessed 24th September)
Kacen, J. J., & Lee, J. A. (2011). The influence of culture on consumer impulsive buying
behavior. Journal of Consumer Psychology (online) 12(2), 163-176.
https://www.sciencedirect.com/science/article/pii/S1057740802702325 (Accessed 24th
September)