Late Mover’s Entry Strategies in the Chinese Retail Market: The Case of by Korean Company

Purpose - This study aimed to analyze the strategy of late domestic entrants into the Chinese retail market, focused on the case of Lotte-Mart, because there are few studies on entry strategies by domestic retail companies into China. Research Design / data / methodology - The methodology of this research is case study which is centered on literature reviews with some interviews. We conducted a documentary survey and interviews about the China retail market and analyzed Lotte-Mart’s entry strategy into China. Results - Lotte-Mart chose M&A as the mode of entry, pursuing quick market entry and expansion. It chose small to medium cities with relatively less competition. Following the entry stage, Lotte-Mart devoted much effort to localization, attempting to organize stores and assorting products to fit the Chinese consumers. It operates CSR programs to increase its brand awareness and create a favorable brand image. Conclusions - Lotte-Mart will now have to prepare other corporate strategies for expansion and growth. The understanding of the Chinese retail market and the case analysis of Lotte-Mart’s market entry strategy offers the significant implications for domestic retail companies planning to expand into China.