B&Q’s Asian dawn

The biggest B&Q in the world is situated in the YangPu district of Shanghai.
Shanghai, estimated population 18 million. This year more than ten million square metres of living space will be created here, about one third of the total built in Germany annually. Western DIY retailers have meantime recognised the opportunities offered by this new market. OBI is represented by four DIY stores already, B&Q has seven. But Chinese competitors like Homemart, Orient Home and No. 9 are also having a field-day in the marketplace. In size their retail formats are somewhat below that of their western competitors, which range between 8 000 and 10 000 m².
Hansen Tian, President of B&Q China, has great plans for China.
Since June 1999 B&Q has had a presence in the People’s Republic of China with a first store in the Hutai district of Shanghai. Hansen Tian, President of B&Q China, acknowledges that this was a trial store once the group had gained its initial experience with the Asian market in Taiwan, where it started operations in 1996. In the first year alone it was felt necessary to change 60 per cent of the products. Around 85 per cent of all the products available are sourced in south-east Asia itself. In subsequent new openings (including one for the XuHui district in 2000) the company has made practical use of previously gained experience. Since the middle of June this year B&Q has had four stores in Shanghai alone. And the store in YangPu (opened in August 2001) is the biggest B&Q outlet anywhere at 18 000 m². Translated into reality here are all the central elements of consumer demand determined as a result of analyses and surveys: more decorative ranges, a greater selection of furniture. Which is why the company has leaned heavily on Ikea in this respect.  The targets that B&Q is pursuing in China are ambitious. In the words of Ian Strickland, EVP Retail, “In China we intend to become the top player among the builders’ merchants and DIY superstores.” With this in mind the company is planning to open 54 new DIY superstores in the Chinese heartland over the next five years. It is hoped that this figure will be as high as 126 DIY stores by the year 2010. Even though the Chinese market differs from the European one in being more of a “buy-it-yourself” market – where the products are selected, but installation is done by professionals – the growth rates expected in this trading segment are enormous. B&Q estimates the Chinese DIY retail…