Case | HBS Case Collection | February 2014 (Revised March 2014)

Red Star Furniture Group Co. Ltd.

by Krishna G. Palepu and Pedro Nueno

Abstract

Founded in 1986, Red Star had become the leading department store in China for furniture and home equipment products (bathroom, lamps, textiles complements, etc.). The business model of Red Star was to provide adequate space for vendors (that rented the space) in good shopping mall facilities, well designed and equipped (parking, transportation, services) located in key developing zones of Chinese growing cities. In the first 27 years, Red Star had opened 115 shopping malls in 85 different cities. With capacity to launch up to 10 new malls per year, Red Star expected to reach 200 malls by 2020. By 2012, the company employed over 15,000 people. With increased competition, and the growing complexity of its operations, how should the company manage its ambitious growth strategy?

Keywords: Entrepreneurship in emerging markets; growth strategy and execution; Growth and Development Strategy; Retail Industry; China;

Citation:

Palepu, Krishna G., and Pedro Nueno. "Red Star Furniture Group Co. Ltd." Harvard Business School Case 114-053, February 2014. (Revised March 2014.)