BUSS 4 RESEARCH THEME - CHINA

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REWARDS OF OPERATING IN CHINA

REWARDS OF OPERATING IN CHINA

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LOW COSTS- APPLE

  • If apple were to produce in the USA what they produce in China it would cost them an extra $4.2billion.
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B&Q

  • China retail market worth £140bn
  • B&Q set up shop in 1999
  • 54 stores (in china)
  • Market leader in home improvements
  • 2005, B&Q accuired 13 stores of OBI China for an undisclosed sum
  • Last year sales reached £312.8m compared to £211m in 2005
  • 2007 forecasting sales of £400m and profits of around £10m
  • By 2010 B&Q plan to have over 100 stores
  • When Chinese buy homes, they buy an empty shell and furnish them from scratch down to the plumbing
  • They go to B&Q or Orient Home, a big rival in northern China for the funishings and the white goods.
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L'OREAL

  • Growing middle class and wealth
  • Operating profits of £1.24bn in China alone
  • Gain is a 10.3% improvement on the previous year
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