Two U. S. retail majors and one supersized marketplace have not seen business success in China. Electronics retailer Best Buy (BBY) started closing its branded stores across the country Tuesday, just one month after Home Depot (HD), the home-improvement chain shut down its last Beijing outlet.

There are some American companies like KFC and General Motors which reported of record sales in China, but the retreat by Best Buy and Home Depot shows the adversities of doing business in China. The consumer explosion in China is real, as stated by analysts, but foreign companies have to adjust their operations for this very different, highly price-conscious market.

Five years have elapsed after Best Buy had entered the Chinese market and now it is shutting all nine of its branded stores, and its retail headquarters of Shanghai, as stated by Best Buy Asia President Kal Patel, on Tuesday.

The firm will abandon the self-branded business model and in its place the company will invest in expanding its fully owned Chinese auxiliary firm Five Star, he said. Best Buy is really committed to China, and it is trying to figure out the business model that is going to work for the company in China, Patel said.

Best Buy in the country had offered a concept ahead of the consumer, stated a retail analyst named Paul French of Shanghai-based firm Access Asia. Dissimilar to the warehouse style of top Chinese electronic chains Gome and Suning, where sales personnel promote particular brands to get commission, Best Buy gave a better retail environment, said French, offering prices which are not more than its competitors.