Adapting to Local Consumer Behaviour and Competitive Pressures: A Case Study of Digital Transformation in Retail

Abstract

This study examines how a multinational retail company adapted to the competitive pressures and local consumer behaviors in the Chinese market through digital transformation. By integrating e-commerce platforms, mobile payment systems, and personalized digital marketing, the company enhanced consumer engagement, optimized operational efficiency, and built a localized brand presence. The case study method draws on both primary data from internal surveys and financial reports and secondary data from reputable industry sources. Key findings reveal a substantial increase in customer satisfaction, higher adoption of mobile payment systems in urban areas, and improved inventory management through predictive analytics. The company’s omnichannel strategy, blending physical and digital retail, enabled it to meet consumer expectations for convenience and personalization. However, challenges such as data privacy concerns, infrastructure gaps in rural regions, and intense local competition highlight the complexities of digital adoption. This research contributes to understanding how digital tools can align with cultural and market demands, offering strategic insights for global retailers operating in digitally advanced and culturally nuanced markets like China.