MAKRO, a major retail chain operator in Europe, makes its first foray into China's retail market with the opening of its Guangzhou store today.
Its entry is seen as intensifying the already keen competition in the retail market in Guangzhou.
'There will be a battle among retailers here. There is just one cake. We want to have a piece of the cake,' said Lim Tai Thong, managing director of the joint venture, Chia Tai Makro (Jiajing) Co.
To gain market share, the Guangzhou store was going to sell goods at a 'substantially cheaper price', he said.
He was quick to stress his company would not hurt domestic retailers, or at least, not as much as they would have thought, citing a different target customer group.
'We'll only take a little market share in every section [of merchandise],' Mr Lim said. 'Maybe we and Wal-Mart will have an impact on the retail scene here but not as big as people always think.' The opening of the first two stores by Wal-Mart in Shenzhen earlier this year was met with scepticism and threats of a boycott by domestic retailers because of fears the US retail giant was going to undercut its rivals by selling below cost.