1. The Great Wal-Mart of China Brandy Cordeiro John Reeves

2. Background First Wal-Mart in China opened in 1996 379 Stores in China Caters to rising middle class Slow growth approach

3. Challenges Finding qualified managers Finding good site locations Competition from local companies Adapting to Chinese culture and customer Maintaining a good reputation

4. China's Rising Middle Class - Emerged in the last 15-20 years - Concentrated in big cities, not in rural China - Estimated 300 million middle class in China - Wal-Mart aims to take advantage of this demographic.

5. Future Potential As of 2010, China has over 100 cities with populations of over a million. In the next ten years, 150 million urban families with annual incomes of over 10,000 to 60,000. This is considered middle class. An estimated Six Trillion in retail spending Many of China's urban cities like Shenzen are growing at a rate of 20% in terms of population. Estimated in 20 years that the middle class could grow to 700 - 800 million! 50 -60% of he entire population

6. Competition Wal-Mart must compete with China’s state run retail conglomerates like the Shanghai Brilliance group, and France’s Carrefour. Wal-Marts international sales now top 109 Billion, now passing Carrefour. Brilliance has 3,300 retail stores and sales of 8.1 billion. Wal-Mart is starting to beat the competition in sales, and operating margins.

7. Discussion Questions Will Wal-Mart be able to replicate the success it's had in the US in China? What must Wal-Mart do to prosper? Is Wal-Mart targeting the right class? Should they also cater to the lower class?