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M&S mistakes Shanghai for Middle England

March 2, 2009

Analysis of:M&S boss admits mistakes in Shanghai | www.theretailbulletin.com

M&S had a basic error in shop-keeping by failing to understand that the Shanghai customer is not the typical middle class customer of Middle England. Supply Chain problems aside, which are always challenging when importing food products especially into China, the key issue is understanding that Shanghai is a distinct market in China. Having walked the floors of M&S in Shanghai the key problem is the lack of recognizable brands especially in the apparel and home areas. The Shanghai market is characterized by a willingness to spend on luxury products that are clearly demarcated as luxury purchases. The traditional British M&S customer purchases based on the quality of the product. The perception of quality in the UK and other markets has been developed over decades. In the Shanghai market, middle class consumers are willing to save and spend on recognizable luxury brands.

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