Case
Teaching Notes
Supplementary Resources
Abstract
It is a great difficulty yet a key point for foreign-funded retail enterprises to practice multinational operation to adapt to the huge and regionally diversified market in China, to avoid inadaptability to the local conditions, and to better meet the different demands of customers. The case is mainly about the localization strategies of Aeon, describing how Aeon China was developed in Hong Kong in 1985 and in Guangdong Province in 1996, so as to find out its business model during localization in China and its adaptive strategy changes and retail format selection in different environments of institution, culture, consumption, and different consumption habits. By probing into the localization in China of Aeon Retail, the case tries to figure out how a multinational retailer can better adapt to the local market, have a keen sense of the market to choose target communities, and better meet local demands. The case will help in looking into the localization management and cross-cultural communication of multinational retailers.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1: Aeon Mall
Floors and number of various stores in the mall are tabulated below:
| Dragonstar 1F[no112]/ | 3F[no354]/ | 4F[no490]/ | 4F[no465]/ | 2F[no277]/ BEAUTY PARK | 4F[no453]/ | NICK’S 3F[no305]/ | watsons 2F[no271]/ BEAUTY PARK |
| DAPHNE 2F[no244]/ | 2F[no215]/ | AJIDOU 2F[no250]/ | 4F[no431]/ | 3F[no323]/ | 4F[no482]/ | 1F[no102]/ | TAMA YAKI 1F[no133]/ |
| 4F[no432]/ | ZERO PARK 3F[no307]/ | 4F[no472]/ | 4F[no480]/ | 4F[no458]/ | YUYUTO 3F[no303]/ KIDS PARK | 4F[no428]/ | ALFAPARF 2F[no266]/ BEAUTY PARK |
| 3F[no350]/ | 4F[no425]/ | 1F, 2F[no168+280]/ | 4F[no442]/ | 4F[no423]/ | STARBUCKS 1F[no166]/ | 4F[no420]/ | 3F[no360]/ |
Figure 1: Brands Having Stores in Aeon Mall (Beijing Fengtai)
- Setting service counters. There are service counters in the shopping center so that customers can be guided to their destinations. In addition to introducing facilities, the counters also have services like lost and found notices, wheelchair renting, “children’s cartoon carts” for rent (popular in China), and gift wrapping, so as to meet all demands of customers.
- Providing a parking lot for customers’ convenience. A rain-proof indoor parking area has 800 spaces on the ground floor and the second floor underground. An LED-displayed parking-lot management system was introduced to facilitate the search for empty parking spaces in the parking lot. Besides, sections are arranged by colors within the parking lot, having identification marks set up to help customers identify where their cars are. Besides, Aeon had a special parking lot for disabled customers, including eight spaces on the ground, 12 spaces underground, two spaces on the roof, so 22 altogether. The spaces are spacious for easy parking and leaving.
- Barrier-free toilets and children’s toilets. In addition to nine multipurpose “barrier-free toilets,” there are also children’s toilets between floors. Besides, a baby care room and dressing room were set on the north side of the third floor, so that customers of all ages can have a suitable restroom.
- Comfortable shopping environment. To create a comfortable shopping environment, about 2,000 trees were planted outside the mall, and about 260 bonsais were placed in the mall. In addition, Aeon Mall offers spaces for relaxation at different sites in the mall, having 400 cushioned benches in it.
- Employee-only facilities. To ensure that shop assistants in franchised stores and employees for cleaning and other jobs maintain high energy, a special lounge was set at the back of the shopping mall.
- Setting an outdoor fountain plaza. A fountain plaza was set in front of the central entrance to the shopping center. Customers can have their whole families relax around the fountain during weekends. Kids can play with water there, and activities can be held there with reservations.
- Running a shuttle shopping bus. To make it convenient for customers to shop in the mall, there are seven lines of shuttle buses arranged. Two lines are provided for the way between the mall and the nearest subway station, having one bus depart every 20 minutes. Other lines have one or two buses depart every hour.
Source: Aeon (China) Investment Co., Ltd.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
