Exporting retail brands can be tough sell

  • Article by: DAVID PHELPS , Star Tribune
  • Updated: February 26, 2011 - 1:23 PM

Best Buy's retreat in China and Turkey this week is a common scenario for retailers abroad.

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pitythefoolsFeb. 26, 11 8:49 PM

So in China they won't buy the cheap Chinese-made crap at Best Buy that Americans will?? My my.

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bgmach3Feb. 27, 11 7:26 AM

So lets plan another expensive trade trip to China. Neither corporate America or the corporations that own them get it. The chinese have no interest in helping our economy. The chinese are hard core communists. Communism is their RELIGION. It's not their political belief it is their RELIGION. They will fight and die for their beliefs as hard as any extremist moslem will fight for theirs. They are never going to stop trying to take America. They couldn't do it militarily so they have found it can be done economically. Now with some brainwashing from our own corporations our technology is employing their labor force. Our country's economic base is evaporating, our debt is in the trillions as our tax base is nearly gone, our unemployment is actually at 17% not 9% and our bought and paid for politicians are right in their with their owner corporations telling us to buy, buy, buy. After all 70% of our economic base is buying. Buying chinese made product.

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beerbrewerFeb. 27, 11 7:35 AM

pitythefool - The story actually said they would prefer to buy even cheaper crap, if it is available. They buy on price and prefer to trade down.

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boshkFeb. 27, 11 9:02 AM

isnt best buy (or any other US retailer for that matter) in china kinda like feeding steak to a cow?

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ifarmectosFeb. 27, 11 9:15 AM

The success of brands like mcD's and KFC in Asia is because they went into new, different markets and did not try to force the American way on the new market. They adapted, offered different menu items that local people wanted to eat, not forcing them to eat what Americans want to. Go to McD's in Japan, you won't recognize 1/2 the menu. Who here would eat a rice burger or order green tea? And KFC, they turned themselves into a high end fast food joint. And for some mysterious reason, the quality of their food is much higher there than it is here. Business that expands into new markets will FAIL if they don't adapt to the new market in a major way. Walmart, Burger King, IKEA, now Best Buy...The graveyard is full of overconfident execs who thought they were the next Cortes Conquistador.

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sonjalangFeb. 27, 1112:23 PM

If China values low price over good quality, I don't understand how Walmart could have failed, esp. between '95 and '06 before Walmart was upgrading some products.

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sonjalangFeb. 27, 1112:25 PM

ifarmectos--Thanks for the perspective. Back in 1985 I remember being amazed to find beer in Swedish McDonald's stores. It was kind of cool. Improves the food.

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nonewtaxesFeb. 27, 11 1:06 PM

IKEA is successful in China.

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mesabamamaFeb. 27, 11 6:51 PM

Dave Phelps says that Best Buy is failing in China. Huh? They are opening 40 to 50 new stores in China -- how is that failing?

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teddygFeb. 28, 11 1:56 PM

Turkey was an execution problem for Best Buy. They correctly saw the opportunity (and Turkey likes American brands) but were out-executed by German chain Media Markt dba Saturn brand. Better locations, logistics, inventory. Basically, BBY picked the wrong development partner and got there a year too late.

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