Why carrefour failed in singapore

Military and political conflicts may increase expenses in transportation, among. However, what exactly he would be doing. Case Discussion Questions 1. Do you agree? Students answers. In mid, Carrefour announced that it would venture into Singapore. But industry insiders questioned Carrefour's decision to enter a highly saturated and high cost market In , Carrefour planned to exit a few South Asian markets. It, however, decided to retain its presence in Malaysia and Singapore.

At the same time, he announced that Carrefour would exit the countries where realistic prospects of becoming the market leader were not present Though Carrefour was successful in attracting customers, it found it more difficult to retain them. It soon found that customers preferred convenience and proximity as they shopped often, and were very price conscious.

The retail market was saturated with several local players already having a formidable presence. According to Sonya Madeira Madeira , managing partner, Rice Communications , the main reason for Carrefour's failure in Singapore was low product differentiation.

She said "Low product differentiation means that shoppers can get similar products quite easily elsewhere, and so make purchase decisions based on convenience and price" Carrefour's performance in several Asian markets did not live up to its expectations. It incurred losses on several ventures. In many of the Asian markets, Carrefour failed to position itself among the top retailers. Its decision to penetrate the Asian market was further supported by its success in international ventures in Latin America.

Singaporeans were initially attracted with the combination of food and non-food items such as electronics and furniture. Your child can get lost while running around in a supermarket that housed a variety of products in one roof!

Once the enthusiasm faded, Carrefour faced tough competition from the other local players. These stores gave Carrefour a run for its money! Imagine traveling in the middle of town just to replenish your groceries. It is quite a hassle, right? This is why it is convenient for consumers to buy groceries in stores spread across residential areas.

I am referring to Cold Storage and FairPrice. I would not want to travel far and wide just to get an item that I can buy nearby!