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In China’s coastal cities, in particular, it was soon 26 Multinational Retailers and Consumers in China easy to find evidence for this. Within a few years, the retail landscape had changed out of all recognition. There were stylish shopping plazas, advertising billboards, neon signs, lavishly furnished new restaurants, expensive nightclubs, karaoke bars, jewellery shops, brand name stores and a proliferation of foreign products. The once drab clothing of its inhabitants, especially that of the young, had been replaced by the latest fashions and accessories.

Newly hired employees had to sign a contract, specifying the duration of the period in which they would work, as well as responsibilities, benefits and wages. Nowadays, both employees and employers have a choice, respectively, in selecting which firm to work for and who to recruit. Job mobility has increased to such an extent that foreign firms report the retention of key staff to be a major problem (Walsh and Zhu, 2007; Warner, 2008). Reward systems are being reformed with a trend towards performance related systems (Cooke, 2009), and benefits such as company accommodation and free medical care replaced by a commercial housing market and contributory medical schemes.

Geographical reach was expanded; retail joint ventures could now be established in all provincial capitals and cities directly under the central government – even though only one or two retail joint ventures would be likely to be approved in each pilot area. Joint venture retailers were now allowed to engage in wholesaling and chain stores could be operated, provided that they were organized as branches of the joint venture. The new measures permitted the foreign partner to hold a majority share if they had the potential to export China made products.

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Publishers Weekly (2 May 2016)


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