Business Case Studies, Competitive Strategies Case Study, Home Depot, B&Q, Battle for China

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Case Title:

Home Depot vs B&Q: The Battle for China’s Home Improvement Market

Publication Year : 2007

Authors: Taranjeet Chawla, Kumar Satyaki Ray

Industry: Retailing

Region:China

Case Code: COM0193K

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:

In 2006, China’s home improvement market was estimated to be worth $50 billion, growing at 20% annually. As of 2006, various domestic and international players had a presence in the market. While B&Q of UK was the market leader, others such Home Mart, Home Way and Orient Home also had a stronghold. Besides, Home-Depot of the US, the largest retailer of home improvement products in the world, was planning to enter China soon. In this scenario, analysts felt that the market was ready for a fierce battle among various retailers. They also debated how China’s home improvement market would shape up.

The case gives a brief account of the evolution of home improvement market in China. It then discusses B&Q’s entry, growth strategies and expansion in the country. It also talks about Home-Depot’s planned entry and the challenges it would face in China

Pedagogical Objectives:

  • To understand the emergence and growth of China’s home improvement market
  • To assess how B&Q entered China and established itself as the largest home improvement retailer
  • To understand how Home Depot’s entry would impact China’s home improvement industry in general and B&Q in particular
  • To discuss who would lead the Chinese home improvement market – Home Depot or B&Q.

Keywords : Home improvement; Chinese home improvement market; B&Q; Kingfisher; Home Depot; China's retailing scenario; China's competitive landscape; Major players; Evolution of home improvement market; Competitive Strategies Case Study; IKEA; Home Mart; Orient Home

Contents : 
China’s Home Improvement Market: An Overview
B&Q in China: Reaping Early Mover Advantage
Home Depot: The Giant Enters the Dragonland
Rising Income of the Chinese
China’s Home Improvement Market: Competitive Landscape

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