Zhou Changqing, the chief executive of the Dataquest consultancy, which compiles statistics to domestic retailers, said Marks and Spencer failed to get Chinese people to “take their brand to heart” as they did not engage them properly. “I have been to Marks and Spencer in London and you could tell they have a very stable market of middle class consumers in the UK which they know very well,” he said. “But in China, they have focused too broadly on consumers at every social level, without really targeting anyone in particular,” he said. “You just have to compare this to Ikea, who rapidly change their marketing strategy to meet their ideal market in China,” he added. “Chinese people love Ikea. They spend a day out at their stores - and even have a sleep!” Indeed, a recent study by Bain & Co said foreign retailers have been losing market share to their local rivals in recent years – largely because they quickly lose sight of fast-changing consumer demands in China. In 26 areas studied by the consultancy, foreign brands’ sales shrank 1.4 percent in 2015, while for local brands, it grew by 7.8 percent. Domestic firms have advantages in having “a single-country-focused development process for new products,” the study said.
Major UK retailer Marks & resorts ( M&S ) is pulling out of China , the world 's largest retail market . The move occurred just one year after M&S opened its tenth store in the country , with " low rent awareness " cited as the reason for the exit , according to robin Colton , the firm 's managing director of greater China . While popular with British retailers , many domestic customers in Beijing only became aware of the store 's presence amid promotions for its closing down sale . Other factors in the exit include high rents , a domestic preference for smaller shops , store placement and a lack of understanding of Chinese consumers .