Bottom line: Wal-Mart’s new layoffs underscore the intense competition in China’s retail market, which could cause it to miss its new store target, while Heinz’s expansion reflects the big potential for big global food brands.
Heinz opens major new China plant
Two new stories are casting a spotlight on diverging trends in the retail and consumer space for major multinationals, with retailing giant Wal-Mart (NYSE: WMT) making big new cuts in its China operations even as US food maker Heinz launches a massive new China factory. Wal-Mart’s move highlights the intense competition that has gripped China’s retail sector over the last 3 years, forcing several major players to leave the market or consider doing so. At the same time, there’s still huge opportunity for makers of quality food and other consumer products, especially from major foreign brands that are generally more trusted by Chinese buyers than domestic names. Read Full Post…
Two new headlines are casting a spotlight on the very different tastes that China can hold for foreign food firms, including the sweetness they often feel on entering the huge market for the first time. That particular taste is quite strong in the latest announcement from US salt giant Morton, which has just gained major new access to the market through a joint venture.
But the taste can often be far more sour for companies that have been in China for a while, as they experience the many challenges of doing business in the complicated market. That particular taste is in the latest headlines for global fast food leader McDonald’s (NYSE: MCD), which has reportedly hit a speed bump due to a dispute with a local partner as it tries to reignite its growth through a new franchising drive. Read Full Post…
