Retailco
Introduction 3
Situation Analysis 3
Problem Statement 6
Alternatives & Evaluations 7
Recommendations 9
References 10
Introduction
Rick Wang, the managing director of RetailCo. Inc., the master franchisee for the Athlete 's Foot in China, was an American born Chinese, who began his career as an account director at Lintas, an international advertising agency. In 1992, he moved to Shanghai where he became the Vice President of marketing for Shanghai Fuller Foods Ltd. By 1997, Shanghai Fuller Foods Ltd was sold to Nestle and Wang decided to leave the company and strike it out on his own.
With the advice from an American friend at Nike, Rick Wang became acquainted with the athletic footwear industry. Wang entered the retail and franchise business by establishing RetailCo Inc, a company established with the intention of managing the retail realities of the athletics footwear sales in China. In 1998, RetailCo Inc opened its first sports and retail store under the US franchise The Athlete 's Foot. Early success with the franchise saw rapid growth and included the expansion of stores to other regions in China. RetailCo Inc became one of the first and biggest sports retailers in China, and they were responsible for the athletic specialty stores of Nike, Adidas and Reebok. In fact, RetailCo became the largest Adidas retailer in China.
Wang achieved success at a time when the franchise concept in the Chinese market was new and innovative and the sports market was underdeveloped. Twenty two days after the first store in East China was opened, Wang started an expansion strategy and 40 corporate stores were opened in seven other Chinese cities. The company began to make a profit but by 2001 the company began to experience major problems.
Situation Analysis
Franchising seems to be an attractive mode of entry for global companies that wish to anchor their brand in China without taking much risk. The history of franchising in the Chinese market began in the
Situation Analysis 3
Problem Statement 6
Alternatives & Evaluations 7
Recommendations 9
References 10
Introduction
Rick Wang, the managing director of RetailCo. Inc., the master franchisee for the Athlete 's Foot in China, was an American born Chinese, who began his career as an account director at Lintas, an international advertising agency. In 1992, he moved to Shanghai where he became the Vice President of marketing for Shanghai Fuller Foods Ltd. By 1997, Shanghai Fuller Foods Ltd was sold to Nestle and Wang decided to leave the company and strike it out on his own.
With the advice from an American friend at Nike, Rick Wang became acquainted with the athletic footwear industry. Wang entered the retail and franchise business by establishing RetailCo Inc, a company established with the intention of managing the retail realities of the athletics footwear sales in China. In 1998, RetailCo Inc opened its first sports and retail store under the US franchise The Athlete 's Foot. Early success with the franchise saw rapid growth and included the expansion of stores to other regions in China. RetailCo Inc became one of the first and biggest sports retailers in China, and they were responsible for the athletic specialty stores of Nike, Adidas and Reebok. In fact, RetailCo became the largest Adidas retailer in China.
Wang achieved success at a time when the franchise concept in the Chinese market was new and innovative and the sports market was underdeveloped. Twenty two days after the first store in East China was opened, Wang started an expansion strategy and 40 corporate stores were opened in seven other Chinese cities. The company began to make a profit but by 2001 the company began to experience major problems.
Situation Analysis
Franchising seems to be an attractive mode of entry for global companies that wish to anchor their brand in China without taking much risk. The history of franchising in the Chinese market began in the
References: • MASTER INTERNATIONAL FRANCHISING IN CHINA: THE ATHLETE 'S FOOT INC (A), Richard Ivey School of Business, The University of Western Ontario. • The Athlete 's Foot – Athletic Footwear http://www.theathletesfoot.com • Garrick Wang, CEO, RetailCo Inc, Shanghai China http://www.apboasia.com/planning/wang.html • http://www.tdctrade.com/imn/04020501/retail089.htm • MASTER INTERNATIONAL FRANCHISING IN CHINA: THE ATHELE 'S FOOT INC http://www.asiacase.com/ecatalog/NO_FILTERS/page-CROSSMKT-633918.html • http://minnesota.franchisesolutions.com/franchises/The_Athletes_Foot.cfm