Six supermarket chains on China's top 10 list are in Shanghai. A recent development surge is in mega-marts such as Metro, Carrefour and Yaohan's International Merchandise Mart. These companies are expanding into the Shanghai market, utilizing their experience in operations in other Asian countries. The well-developed retail sector means possible outlets for foreign products. This also provides a good infrastructure for Shanghai to serve as the major wholesale and distribution center for the country, especially East China.
Shanghai is a good place to start a venture in China.
But anybody who is planning to open the Chinese market must remember that China is a large and diverse country, divided into many regions. Even for Chinese companies, it is impossible to cover the whole country from one single spot. The best way to formulate a China strategy is to analyze which regional market will be most suitable for your products and will most suit your objectives. Your choice of a entry point should be based on this result. Nellie Cheng is director for East Asia in the Washington State Department of Community, Trade and Economic Development.