After interviewing Jerry O’Brien, we decided to get the student’s perspective on Kohl’s Department Stores Center for Retailing Excellence at the University of Wisconsin-Madison’s spring break trip to China. We talked to Sarah Ackerman, president of the Student Retail Association and asked her to share her experience on international retailing in Hong Kong and Shanghai.
UW-Madison has a long lasting relationship with China. Over 1,200 current students are from China – more than from any other country. There are over 1,600 alumni currently live in China. Tell us about the presentation delivered by your alumni, Mr. and Mrs. Fang. What did you learn about retail brand management?
Mr. and Mrs. Fang gave an awesome presentation on the retailing industry in China and what needs to be considered by companies trying to enter the market. A large part of launching and expanding a brand in China relies on the background and cultural issues of the country. For example, the ratio of males to females continues to grow. With the past history of the “one child policy,” there are many more boys/men than girls/women. This is important to keep in mind when merchandising and determining a product assortment. The Fangs also focused on the geographical differences within the country of China. Almost all major cities are located along the coast, specifically the Eastern coast.
Jeffrey and Christine Fang, UW alumni, deliver a presentation about retailing in China
Retailers need to consider this when choosing a location to launch in. Moving further inland is likely to hurt their chances of gaining market share and establishing a stable brand reputation with the Chinese consumer. The luxury market and its domination is something the Fangs mentioned. China’s social statuses are very divided from poor to affluent.
What did you learn about retail operations in China that differs from the U.S.?
I really noticed that many sales associates at clothing retailers wear uniforms. There is also a lack of visual merchandising as compared to in the United States. The level of customer service was also very different and de-emphasized. The language barrier might have been what lead to this, but when I would observe associates interacting with Chinese consumers, there wasn’t that much of a difference.
Tell us about opportunities you became aware of for/about retailers in China that you did not know about before?
The middle class is somewhere that I think retailers can attempt to expand on. We learned that that the luxury market in China is extremely successful, yet when you look at the breakdown of social statuses, there are really only polar opposites-poor vs. affluent. However, many presenters throughout our trip emphasized the growing middle class. This may be an area for retailers to capitalize on.
After this trip, can you picture yourself living and working in retail in Hong Kong or Shanghai?
Personally, I cannot see myself working in Hong Kong or Shanghai, but I definitely see myself working with companies and partners in the East. This trip has made me realize how global the retailing industry has become, and I value the importance of keeping relationships in countries, like China.
What’s your most memorable experience from the trip?
My most memorable moment of the trip was the last night in Shanghai. Our group was invited to join UW’s Chancellor Biddy Martin for an alumni reception. Chancellor Martin was in China connecting with universities and spreading the “Wisconsin Idea.” I thought it was a great event, as it really wrapped up the entire trip. At the reception, there were alumni that live in China, parents of current and future students, faculty, and students. The event emphasized the role UW can, and does, have on a global scale. I realized that being a student of the University of Wisconsin I am capable of many things beyond our state and nation.
University of Wisconsin-Madison is one of NRF Foundation’s college partners.
