There are no global retailers, which is why integration is essential in developing markets, said Dr. Hans-Joachim Körber, ceo and chairman of the Management Board, METRO Group, at the 51st World Food Business Summit in Shanghai.

Speaking from experience gained by operating in 30 different countries, Körber told the Summit that: “the heart of your business must always beat with the local rhythm.” He said that this presents challenges for retailers in China and Asia; regional disparities in culture, language and customer habits limit the scope for economies of scale. Differing levels of infrastructure development have consequences not only for the supply chain, but for customer communication, assortments and formats. Körber said that there is no winning retail format in Asia, but a diversity of successful formats; adaptation is the key to balancing common business standards with local needs.

Retail relies much more than other sectors on contact with people. Wherever different cultures and backgrounds meet, the whole cooperation must begin with respect, as well as a good mix of international and local management. Any retailer that fails to integrate into communities in Asia with be confronted with severe difficulties. However, the biggest mistake a retailer can make is to not invest in Asia. On the retail world map, the focal points of growth are clearly moving from West to East.

Food safety is a particular consumer concern in China. METRO has worked with its partners and the government to help implement true standardization in China, which includes helping to improve living standards for farmers. This is all part of the fair give and take needed to adjust and adapt to new markets.