Carrefour in Taiwan

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Case Details:

Case Code : BSTR281
Case Length : 15 Pages
Period : 1989-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : Carrefour
Industry : Retail
Countries : Taiwan

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"(The company) treated the Taiwan experience as Carrefour's laboratory not only for China, but all Asia."¹

- Eric Deliers, Regional Manager, Carrefour China, North Region in 2006.

"Carrefour has not only made money in Taiwan, it has also won the hearts of the Taiwanese people."²

- Annette Lu, Vice President, Carrefour Taiwan, in 2004

Introduction

In 2007, France-based Groupe Carrefour (Carrefour), the second largest retailer in the world, completed 18 years of operations in Taiwan. Taiwan was Carrefour's first Asian venture and as of 2007, the company was one of the leading retailers in the country, with 48 hypermarkets. Taiwan was Carrefour's eleventh³ largest market with sales of over € 1.391 billion⁴ in 2007.

Carrefour entered Taiwan in 1989 through a joint venture with a local partner - Uni President Enterprises Corporation⁵ (Uni President) - after the retail industry was partially opened up for foreign investment.

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1] Paul Urwin, "Western Hypermarkets Take Hold,"China Pictorial, February 2006.

2] "Carrefour Opens 34th Outlet on its 15th Anniversary in Taiwan,"www.investintaiwan.nat.gov.tw, December 20, 2004.

3] Carrefour's top ten markets in 2007 were France, Spain, Italy, Belgium, Brazil, China, Greece, Argentina, Poland, and Turkey.

4] 1 € = US$ 1.474 (As of February 19, 2007)

5] Uni President Enterprises Corporation is one of the leading business conglomerates in Taiwan and the largest food company. The company also has stakes in 7-Eleven Convenience stores in Taiwan.