CHINA July 2019
Carrefour to withdraw from China
Carrefour Group has recently announced the signing of an agreement to sell its 80% equity interest in Carrefour China to Chinese-owned for Euro 620 million (US$690 million). This is part of Carrefour’s plan to withdraw from the Chinese market in which it has been continually registering losses.
The transaction values Carrefour business in China at Euro 774 million (US$862 million). Carrefour will however retain 20% stake in the business. The transaction is expected to be completed by the end of the year. Carrefour China, which operates 210 hypermarkets and 24 convenience stores, had seen a sharp decline in sales with its 2018 revenue plunging 10%.
This makes Carrefour the latest in the list of foreign retailers like Tesco, Lotte Mart etc. which had either retreated or disposed their Chinese operations to local companies, amidst the fast changing and highly competitive Chinese grocery retail market. There is definitely a need for foreign companies to rethink their strategy in China. Chinese consumers are increasingly turning to online shopping rather than brick-and-mortar stores for their daily needs., Tencent and e-commerce giant Alibaba have dominated the country's online retail market and the 3 have also been diversifying to brick-and-mortar stores lately. For, the acquisition of Carrefour China business will enable it to diversify beyond consumer electronics and appliances as consumers demand all-in-one e-commerce platforms. China has by far the largest online food-delivery market, with 45% of global market share.
Nielsen study found that 19% of FMCG products like packaged foods, beverages, toiletries, OTC medicines and other consumables have recently been purchased online in China. In Germany, this is just 1.7%. To survive in China, foreign retailers need to ally themselves with at least one of the Chinese e-commerce platforms.



* denotes compulsory

Complimentary Copy

This is a onetime free circulation. For future issues, you will need to subscribe to ensure you receive timely regular copies in both printed and softcopy formats.

* denotes compulsory

Subscribe to Asia food & beverages report and get 1 year (6x) issues in printed (by mail) & softcopy (by email) as well as 1 year access to our online databank with a single user id and password. To subscribe, click to subscription now.


* denotes compulsory

I wish to subscribe to 6 issues (1 year) of Asia food & beverages report as well as gain 1-year access to its online databank which contains past years' reports, articles and extracts at only US$300.

I wish to pay by:

Payment Type *


If you would like to pay by cheque, please send the order form with cheque attached made payable to 'Consumer Goods Intelligence Pte Ltd.
Consumer Goods Intelligence Pte Ltd
10 Anson Road, #10-06 International Plaza
Singapore 079903
Tel: +65 6348 8973
Fax: +65 62275402

Subscriber to Asia food & beverages report also gains benefits in terms of further discounts by up to 20% for advertising, advertorial and research services.