In the fall of 1996, Bestseller became one of the first international fashion companies to enter the Chinese retail market. Earlier that year, Allan Warburg and Dan Friis had made contact with the CEO of Bestseller A/S, Troels Holch Povlsen, regarding the prospect of selling Bestseller brands in China, where they felt there were many business opportunities. Holch Povlsen found himself convinced by the two entrepreneurs’ enthusiasm for the Chinese market.<br><br>They quickly proved that they had been right about China. A decade after the first store opened, Bestseller China had almost 2,000 stores, and accounted for more than one-third of the total turnover of Bestseller A/S. The secret to Bestseller China’s extraordinary success was its ability to sell price-competitive European designs with a Chinese touch, which was achieved by locating all production in China and modifying Bestseller A/S’s designs to suit the size and tastes of Chinese middle-class consumers. With a 10-year headstart over potential competitors, Bestseller China had by the end of 2007 managed to establish a strong presence in China. However, high economic growth and the growing middle class were making the Chinese market highly attractive for other companies. Although global giants, such as Zara and H&M, were devoting big chunks of their budgets to entering China and capturing market share, these aggressive new entrants were not Bestseller China’s biggest concern. In fact, the competition from local companies was seen as the real threat.

Risking becoming the target of a hostile takeover or being cornered as a small regional player in the global beer industry, the Danish brewery Carlsberg decided in the early 2000s to expand into rapidly growing emerging markets to pursue new arenas of growth. By 2008, this strategy had paid off, and Carlsberg was positioned among the five largest breweries in the world. In the Russian market — one of the fastest-growing markets in the world — Carlsberg had become the market leader. In China — the world’s largest beer market in terms of size and population — the company had achieved a 55 per cent market share in Western China, and operated 20 brewery plants with approximately 5,000 employees. The ambitious acquisition strategy applied in emerging markets had become essential to Carlsberg’s business in relation to future growth and profits. Accordingly, the case focuses on Carlsberg’s entry into China, which started as a commercial failure in the eastern part of the country, but subsequently developed successfully in the west.

Risking becoming the target of a hostile takeover or alternatively, being cornered as a small regional player in the global beer industry, the Danish brewery Carlsberg decided in the early 2000s to expand into the rapidly growing emerging market to pursue new arenas of growth. By 2008, this strategy had paid off, and Carlsberg was positioned amongst the five largest breweries in the world. In the Russian market - one of the fastest growing markets in the world - Carlsberg had become the market leader. In China - the world's largest beer market in terms of size and population - the company had achieved a 55 per cent market share in Western China, and operated 20 brewery plants with approximately 5,000 employees. The ambitious acquisition strategy applied in emerging markets had become essential to Carlsberg's business in relation to future growth and profit. Accordingly, the case focuses on Carlsberg's entry into China, which started as a commercial failure in the eastern part of the country, but subsequently developed successfully in the west.