Yi Mao And Leroy Merlin Shut Down One After Another.

Foreign card

But "retreat".

Buyout increases are not in line with national conditions.

Behalf of enterprises: Best Buy

Best buy, the world's leading consumer electronics retailer, stopped its 9 retail outlets in mainland China in February 22nd this year.

The price of similar products is higher than Suning and Gome, which is the most direct impression of domestic consumers on best buy.

It is understood that despite being questioned, best buy has not compromised in pricing.

Best buy has no obvious advantage in personnel costs, commodity purchase prices and so on when it comes to the Chinese market after its mature overseas buyout and markup sales mode.

At the same time, best buy's competitors are quite strong. Gome, Suning and other domestic appliance chain giants not only have obvious advantages in terms of scale and price level, but also frequently increase experience stores, making up for the relatively weak links.

In the face of difficulties, best buy actually wants to attract consumers with its signboard "value-added services", but ultimately, in the face of domestic appliance manufacturers' "down to the end" strategy, best buy has failed.

Best buy's business model doesn't seem to work well in Chinese market, and it seems inevitable that it will quit after a series of years of low performance.

Simple copying hits

On behalf of enterprises: Yi bought

Like the great background of best buy, Yi Mei de supermarket is a large comprehensive supermarket under the new world group of Korean retail giant. Its biggest feature is the operation of "department store".

It has 70 stores in South Korea, occupying 32% of the market share in the Korean market.

As of last year, there were nearly 30 stores in China.

Despite its absolute lead in Korea, it has encountered Waterloo in China.

According to the South Korean media, according to the company's data, Yi Mao lost 91 billion won in fiscal year 2010 (about 84 million US dollars).

While WAL-MART and Carrefour and other foreign retail giants are expanding their efforts in the Chinese market, Yi can only choose to shrink in China because of losses.

It is reported that Yi can sell a reserve price of 200 million yuan, ready to sell its 11 stores in North China and East China.

Experts believe that the quality and price of the products sold by Yi buy are neither advantageous nor characteristic.

The deeper reason for its failure to return to China is that it is too confident in its own mode of operation, and has no in-depth study of the consumption habits of Chinese customers, nor has it received the greatest support from suppliers.

Business models are not alike.

Representing Enterprises: Leroy Merlin

The Leroy Merlin group, which belongs to the world's top 500 company, the French Muriye family, was founded in 1923. It has more than 700 chain stores worldwide. It has become the world's fourth and Europe's second largest pnational decorative building materials retail group.

There are 15 big international chain groups such as Auchan supermarket and Decathlon sports supermarket.

Leroy Merlin went to Beijing in 2004, after 6 and a half years of arduous management. It only opened two stores in Beijing.

This contrasts sharply with the statement made by Lin Boyi, President of Leroy Merlin China in July last year, that he hoped to achieve 1000 stores in China.

Leroy Merlin's "French home mode" is not so popular in China's retail market.

In the changeable domestic retail business, Leroy Merlin can not find the way to survive.

Imitate the practices of other retail businesses everywhere, but they have become "four anomalies" in the industry.

Moreover, some of Leroy Merlin's practices hurt the hearts of suppliers, thus losing the biggest "backing".

In the long run, it is easy to understand that Leroy Merlin is in trouble.

Higher positioning leads to cold.

Behalf of enterprises: Bobbi flagship store

In March 2009, Bobbi's world's first flagship store opened in Shanghai.

This year, the luxury brand, which claims to be able to sell a doll every two seconds, announces its first flagship store has lost its way to Shanghai.

At the beginning of this year, MATTEL group, one of the largest toy dealers in the world and the Fortune 500 company, closed its first Bobbi flagship store.

The flagship store has been closed for less than two years.

Although MATTEL stressed that Bobbi would not withdraw from the Chinese market and shut down the flagship store "for strategic adjustment", the industry generally believed that the main reason why the store closed was the fact that Bobbi had suffered from acclimatization in China.

The heart of Chinese consumption has a steelyard for brands and prices.

At the same time, Chinese consumers lack collective memory and emotional dependence on Bobbi dolls.

Under such circumstances, once the price of the commodity exceeds the price limit already set by consumers, it will not buy it.

In fact, at present, China has become the world's second largest consumer of luxury goods, which shows that Chinese consumers do not exclude and prefer to buy high-end positioning products.

However, many consumers buy luxury goods to prove their high-end identity. Obviously Bobbi doll is a big foreign brand, but its recognition in domestic consumers is far less than that of LV and GUCCI brands.

Reporter's notes

Foreign card is just leaving temporarily.

Most of the foreign brands rely on their successful experience in foreign countries and simply copy their business models to the Chinese market without realizing the particularity of consumption in the Chinese market.

The Chinese market needs big foreign brands and their business models that are in line with China's national conditions. But at present, the localization of foreign brands is obviously not thorough enough.

The advanced service concept advocated by these brands is not a reason for consumers to buy for most domestic consumers at this stage.

Experts pointed out that China's market potential is huge, and no foreign retailer will give up easily.

Even the best buy, which has closed all its stores, has repeatedly stated that it is "no way to withdraw from the Chinese market". Its acquisition of the local brand "Five Star appliance" will become a new weapon for its flagship China market.

After failing, these brands should seriously reflect on what kind of image to face Chinese consumers and fight the Chinese market again.