OBI opening in the Middle Kingdom

Wuxi, a city of four million inhabitants in eastern China, is situated one and a half hour’s drive from the metropolis of Shanghai. The OBI superstore with its retail area of 10 000 m² and range of 38 000 products opens up to Chinese consumers the so far relatively unknown possibility of “one-stop shopping” to cover everything required for building and decorating purposes. OBI claims to be offering the Chinese high-quality, reliable products at a fair price while at the same time exporting to China the idea of “more than just four walls”, which focuses on home enhancement. Customers can find inspiration in the imaginatively designed “Gartenparadies” (4 000 m²), the focal point of which is a traditional tea-garden complete with pond. Gardens are a topic that is totally uncharted territory for Chinese customers. OBI intends to introduce them to this creative hobby with many and varied ideas for layout and decoration with live plants and products from the boutique section.
The lamp and lighting studio is also regarded as a novelty in China. The wide choice of products and unconventional style of in-store presentation are designed to impress brand-conscious Chinese consumers.
The key categories in the Wuxi store are tiles and flooring, sanitation, and the tools and machinery section. The product selection is specifically geared to the Chinese market. Here the intention is to appeal not only to DIYers but specifically to trade customers too, the so-called “decoration companies”, by means of a carefully considered and functional range.
Totally European standards are also in evidence where services are concerned: cutting timber to order is not yet something that is taken for granted within the Chinese DIY retail sector.
For German suppliers, establishing the OBI brand in China means a reinforced presence and new sales opportunities in a strange, totally different marketplace, as well as a share in the market experience accumulated by OBI in the different regions of the Middle Kingdom. Joint marketing strategies are to result from combining each company’s China concept with the strategy developed by OBI to the advantage of both parties.
The idea of OBI’s “China alliance”, initiated two years ago, has borne fruit: the inauguration of the first OBI store in China is a contribution towards the country’s opening up to the West. Interested as it is in introducing a market economy, the Chinese government has supported OBI’s ambitious plans. Not the least of these involved a delegation from the Chinese government spending a week at OBI system headquarters in Germany in order to gain an insight into the secret of the success of the OBI stores – franchising – and to learn from company founder Manfred Maus in person.
OBI is not only bringing products for home and garden to China, but above all ideas for the homes of both young and old. The “OBI way of living”, the vision of “more than just four walls”, is intended to make fundamental changes to the consumer habits of the Chinese population in the categories of home-making, decoration and sanitation. In this respect the management in Wermelskirchen is certain that OBI’s first store in China will indeed trigger off a revolution in the style of living there.
The next Chinese OBI stores are scheduled to open in Shanghai.