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Baleno: Expanding Retail Operations in China

Author

Listed:
  • Sherriff T. K. Luk

    (Department of Management and Marketing, Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong)

  • Ivy S. N. Chen

    (Department of Management and Marketing, Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong)

Abstract

Fuelled by impressive economic growth in recent years, consumers' demand for clothing in China had been increasing. Expenditure on clothing of urban households rose from 374.19 billion yuan in 2004 to 509.29 billion yuan in 2006 (an increase of 36.1%), and for rural households, this increased from 91.66 billion yuan to 118.36 billion yuan (an increase of 29.1%).Baleno, a casual wear retailer, had used mainly franchising to expand its retail network. This method allowed for rapid expansion but controlling franchisees in China could be problematic. Opening directly managed stores, on the other hand, required more capital. Baleno needed to decide how it should keep up with the growth in demand and with the expansion of its competitors.

Suggested Citation

  • Sherriff T. K. Luk & Ivy S. N. Chen, 2009. "Baleno: Expanding Retail Operations in China," Asian Case Research Journal (ACRJ), World Scientific Publishing Co. Pte. Ltd., vol. 13(01), pages 1-27.
    • Handle: RePEc:wsi:acrjxx:v:13:y:2009:i:01:n:s0218927509001170
    DOI: 10.1142/S0218927509001170
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