by Fons1 via FlickrBoth Home Depot and B&Q will face hardship on the Chinese market in 2009, predicted Shaun Rein, managing director of the China Market Research Group in Shanghai, at Bloomberg.
“People think prices are going to drop,” Rein said. “They are not going to buy home decoration. It’s a very difficult area to be in now.”
Real estate in China is facing a crisis as measure of the central government to cool down the industry took effect and while those measure have now reversed to prevent an economic meltdown, that change will not have effect overnight.
B&Q is now stronger in China than Home Depot with 60 outlets, notes Bloomberg.
“B&Q will beat Home Depot for now, as it has built a better brand name among consumers,” Rein said. “A lot of people have never heard of Home Depot.”
Shaun Rein is one of the leading voices at the China Speakers Bureau keeping a close eye on how the global economic downturn is affecting China. If you need him, do get in touch.