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| China's market serves as battleground for International giants of office supplies |
| 11/20/06
The Chinese International Stationary and Office Supplies Exhibition were held at the new Shanghai Exhibition Center. According to sponsor statistics, more than 600 Chinese and foreign exhibitors and 20,000 professional customers attended the exhibition. China's market has transformed into a battleground between the International giants of office supplies. Since 2002,as international office supplies leading companies entered the country in rapid succession, China's office supplies market has been growing and becoming more and more competitive. First, a powerful American office supplies company Staples formed a joint-venture company in Shanghai. Next, Office Supper Store representatives announced Office Super Store was planning to open 500 office supplies chain stores in China. After Office Mart and Office Superstore became international office supplies chains and have opened stores in China, Staples receive attention from the media and make frequent appearances on television. After globally expanding to 41 countries, one of the world’s top 500 enterprises and also one of the world's leading office supplies and service providers, Office Depot(New York stock exchange code: ODP),decided to branch out into the China market. Office Depot announced acquisition of Office Depot China, one of the largest office supplies and office services enterprises last month, in Beijing. As one of the world's top 500 enterprises with an annual turnover of nearly 15 billion U.S dollars, Office Depot has earned the world leader status in retail, sales contracts, catalog sales, e-commerce, and in a variety of marketing channels, and has an online annual turnover of nearly 4 billion U.S. dollars. Over the past few years, Office Depot's interest in China has been increasing steadily. According to an IDC special report, the overall size of China's B2B e-commerce market will reach about 577.5 billion U.S. dollars and the office market volume will reach 25 billion U.S. dollars by 2008. China is, after all, a brand-new market to Office Depot. After several rounds of inspection, Office Depot decided to concentrate its attention on e-commerce in Asia. Office Depot China was established in 1999 and has now become the leading enterprise in China's e-commerce. The company's knowledge of China's market has provided Office Depot with a smooth transition into China's e-commerce. Office Depot's chairman and CEO, Steve Odland said: "Foreign enterprises operating in China are prone to make mistakes. We can't just take successful experiences from abroad and apply them directly to China, we have to first adapt to China's situation,to figure out which combination of things best applies to China and what best to promote in the country." |
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