Ten Key Words Of China'S Retail Industry In 2011

2011 is a troubled year for China's retail industry. The prosperity of foreign retail giants was greatly reduced in this year. Wal Mart and Carrefour were trapped in "price deception", and eBay was defeated. Lotte Mart closed its stores, and the four foreign retail giants were all "replaced"; Experience a short time“ Blowout type ”After the development, group buying websites have gone into winter overnight; A scuffle in Taobao Mall reflects the pain of e-commerce enterprise transformation

Compared with the dissatisfaction of foreign-funded enterprises and e-commerce, domestic traditional retail enterprises are slightly more relaxed. Suning Appliance and others entered into e-commerce, Shanghai Xujiahui Shopping Mall, Wenfeng World, Ningbo Sanjiang and others rushed to land in the capital market, and retail enterprises' microblog marketing added a touch to this "autumn" Flamboyant Color

Behind the progress and retreat, success and failure, the inventory of colorful 2011 may be a correction for the retail industry in 2012 trajectory 。

Key words: supply interruption

Parties: Carrefour, Master Kang, etc

Playback: Retailers have always been strong in getting along with suppliers through the operation mode of bank loans, charging "entrance fees" from suppliers to pass on costs and delaying payment collection to achieve profits. However, with the increasingly fierce competition in the retail industry, the contradiction between retailers and suppliers has become increasingly intensified. At the beginning of the year, after Liufu Jewelry was asked to withdraw from its core store because it was unwilling to enter a new store of New World Department Store, Kraft, a biscuit giant, failed to negotiate with Lianhua Supermarket on the issue of deduction, and Lianhua blocked its series of products. Subsequently, Carrefour insisted on deducting half of the 0.2 yuan increase in the price of Master Kang's classic series. Master Kang believed that Carrefour's rebate requirements were too strict, and the two sides failed to reach a result after several negotiations, which led to the interruption of the supply of Master Kang's instant noodles in Carrefour supermarkets across the country.

Comment: The uneven distribution of benefits is the fundamental reason for the frequent occurrence of the contradiction between supply and demand. With the increasingly fierce competition in the retail industry, retailers cannot earn profits by collecting "entrance fees" for a long time. It is imperative to integrate supplier resources and establish partnership with suppliers. For suppliers, only by merging and integrating into a strong brand group can they have the right to speak.

Key words: price fraud

Parties: Carrefour, Wal Mart, etc

Replay: At the beginning of this year, foreign retail giants Carrefour and Wal Mart had to pay for the price game they played in China. As many stores in many cities have fraudulent behaviors such as fabricating the original price, attracting customers at low prices to settle at high prices, failing to fulfill price commitments, misleading price signs, etc., the National Development and Reform Commission has issued the first ticket to foreign retailers to Carrefour and Wal Mart. In addition to ordering the two supermarkets to correct, the illegal income was confiscated and a fine of five times the illegal income was imposed; If there is no illegal income or it is impossible to calculate the illegal income, a maximum fine of 500000 yuan shall be imposed.

Comments: behind the price fraud of Carrefour and Wal Mart in China is the current situation of fierce competition between Chinese and foreign retailers. With the competition with foreign retail giants, a large number of local retailers have successfully upgraded. After experiencing the initial low price advantage, multinational retailers are having an increasingly difficult time in China. Facing the competition from domestic retailers, these retail giants are not thinking about how to adapt to China's national conditions and find effective marketing ideas, but playing the price game. However, when the tricks of fabricating the original price and hiding the truth were exposed, Carrefour and Wal Mart lost not only their market share, but also their brand image and the integrity of multinational companies.

Key words: cross-border operation

Parties: Suning, Jingdong Mall, etc

Replay: The competition among retailers is expanding from offline to online. When e-commerce is more and more developed, online and offline development has become the common choice of many retailers. Starting from selling books on E-shop, Suning Electric began to set foot in the field of e-commerce, and put forward a strategic plan for the next 10 years to try to develop online and offline simultaneously, changing the single role of traditional home appliance retailers.

The performance of online electronic commodity sales of traditional e-commerce Jingdong Mall is obvious to all, and it has begun to set foot in the field of department stores while expanding rapidly; While Dangdang and Amazon.com attract people by selling books, they also expand their products to department stores. Online department stores have become the common target of many retailers.

Comment: For retailers, whether online or offline, this is just an expansion of the marketing battlefield and methods. While looking for convenience, consumers pay more attention to whether the quality of after-sales service will be improved.

Key words: defeat

Parties: Lotte Mart, E-Made

Replay: Following the sale of seven stores at a low price due to losses by the Korean New World Group, Lotte Mart, also from South Korea, was reported to have poor performance in China and suffered losses for three consecutive years. Lotte Mart Qingdao Chengyang Store, the first store of Lotte Mart in Shandong market, was closed in January this year due to poor operation.

As a subsidiary of Lotte Group of South Korea that specializes in large supermarkets, Lotte Mart entered the Chinese market in June 2008 by acquiring Makro. Up to now, Lotte Mart has 87 stores in China, and its rapidly expanding overseas market size has exceeded the 84 stores in Lotte Mart's Korean headquarters in China, but its performance has suffered losses. Lotte Mart Qingdao legal person established in 2008 lost 1.7 billion won, 12.7 billion won and 16.6 billion won respectively from 2008 to 2010.

Comment: The localization dilemma has caused the slow development of Korean retail enterprises in China. The key city layout strategy of Easy Buy in the early stage was relatively successful, but the later stage development fell into the expansion trap. The enterprise expansion planning was too advanced and the investment was too blind, which led to its late return on investment and increased pressure on enterprise operation. If foreign-funded retail enterprises can not make rectification in terms of internal control ability and localization strategy, the development speed in China will continue to slow down.

Key words: "Blending Gate"

Parties: Ajisen Ramen, KFC, etc

Replay: The bone soup of Ajisen Ramen is made by mixing the concentrated liquid, rather than the pig bones cooked on the spot as advertised; The 7.5 yuan/cup pure soymilk sold by KFC is brewed with soymilk powder, not ground on the spot... After experiencing the events of melamine milk powder and clenbuterol, consumers began to pursue foreign brands, regarded foreign brands as a symbol of safety and reliability, and paid several times the price of product cost to enjoy the so-called high quality of foreign brands, but again encountered Ajisen ramen "bone soup door" KFC's "soy milk door" has been hit hard, and foreign brands that consumers once trusted are also facing a crisis of integrity.

Comment: After "Gutangmen", the market value of Ajisen Ramen has plummeted. Foreign brands have deceived Chinese consumers and lost the integrity of enterprises. The final result is that they hurt others and themselves. This is also true for domestic brands. Behind the emerging food safety problems, in addition to the lack of corporate social responsibility and relevant standards, poor supervision is also the cause.

Key words: sudden "winter"

Parties: Soutuan.com, Ertuan.com, etc

Replay: After a short period of "blowout" development, the hot situation of "thousands of groups" war no longer exists, and the group buying industry has entered a cold winter overnight.

Although the large scale of Internet users and the convenient online payment system have promoted group buying websites to take root in a short period of time, the competition in the industry is fierce due to the competition to reduce profits and attract customers. In addition, the previous excessive expansion and recent capital withdrawal have broken the capital chain of some group buying websites. The winter of group buying websites came early and cold. The number of "disappeared" group buying websites has gradually increased. The number of group buying websites closed in October alone has reached 456, and the tide of industry integration has swept through.

Comment: Behind the sudden "winter" of group buying websites is the inherent weakness of this new business in China. Due to the low entry threshold, many group buying websites have piled up, which makes the distribution of interests between them and merchants extremely unbalanced. Such high threshold operation also knocks down those group buying websites with weak foundation. The law of survival of the fittest, which means that those with strength will win, is once again emerging in the rise of group buying websites.

Key words: Taobao "Injury" City

Parties: Taobao and its small and medium-sized sellers

Playback: In October, the renewal of investment promotion and related rules announced by Taobao Mall for the next year were opposed by some small and medium-sized sellers. Some small and medium-sized sellers joined together to form an "anti Taobao alliance", maliciously attacking some big Taobao Mall sellers who operated in good faith, resulting in all online stores including Handu Yishe, Ousha, Canon's official flagship stores and other goods being sold off the shelves, and the operation stopped, With a view to forcing Taobao Mall to give up the adjustment of the rules. Since then, the Ministry of Commerce has expressed its hope that Taobao Mall will take positive actions to respond to the reasonable requirements of relevant merchants, especially small and medium-sized merchants, and at the same time shout to small and medium-sized sellers of Taobao - "Must express their demands in a legal way". Later, Jack Ma, Chairman of the Board of Directors of Alibaba Group, made a public statement to adjust some policies, issued loan guarantees for small and medium-sized sellers, and funded the establishment of consumer deposits.

Comment: Behind the conflict between Taobao and small and medium-sized sellers, there is an objective contradiction between the needs of enterprises to become bigger and stronger and the protection of the rights and interests of many weak and small businesses. The pain of transformation experienced by this e-commerce enterprise also reflects the reality that the construction of e-commerce legal system lags behind the development of the network market - the lack of a perfect and effective anti-monopoly legal system, intellectual property protection system, economic dispute mediation system and consumer rights protection system.

Key words: changing the coach

Parties: Wal Mart, Tesco, etc

Replay: The event of Wal Mart Chongqing store selling fake green pork triggered a crisis of trust again, and Chen Yaochang, president and CEO of Wal Mart China, was forced to resign. Prior to that, other three international retail giants also experienced senior management turnover in China: Lars, chairman and CEO of Carrefour Group, announced in August that the president of Carrefour Greater China would be replaced by Thierry next year; British retail giant Tesco made personnel changes in April this year and appointed a new executive vice president; On September 30, Metro announced that He Zhewei would succeed Cai Tianle as the president and chief operating officer of Metro China.

Comment: The halo of foreign-funded retail enterprises has gradually faded, and the preferential policies they enjoy are constantly decreasing. The advantages of local enterprises in many aspects have begun to emerge, which has intensified the competition in the industry. How to adapt to the needs of the Chinese market has become an important issue for foreign-funded retail enterprises in the face of business problems such as different consumer buying behaviors and obvious cultural differences between China and the West.

Key words: Weibo marketing

Parties: traditional retailers

Replay: After "Internet access", microblog has become a new favorite of retailers. Microblog, which is widely used, is considered by retailers as the best marketing tool. As long as it can attract a large number of "fans", the published product information will be quickly forwarded and browsed. Behind each "fan" is a consumer. Such a fast, instant and low-cost channel is favored by various retailers. As a result, jewelry, home decoration, clothing, travel, air tickets... more and more retailers are experimenting with Weibo marketing, and have launched official Weibo to accumulate popularity. Weibo is like a super department store.

Comments: As a new marketing model, microblog is timely and interactive, allowing enterprises and consumers to discuss problems face to face, which not only facilitates the display of enterprise image and quality services, but also puts forward higher requirements for enterprises. In fact, traditional retailers, no matter what new marketing models they introduce in their operations, are all aimed at improving profit margins, but these practices can only help enterprises to obtain more customer groups and operating income to a certain extent. If the traditional retail enterprises want to control the profit space within the ideal range, they should also seek breakthroughs from the level of their own business model changes.

Key words: listing

Parties: RT Mart, Auchan, etc

Replay: After the antitrust review, RT Mart China and Auchan China in France "tied up" their listing in Hong Kong in July, becoming the largest domestic comprehensive super enterprise listing in recent years. As a joint venture between Taiwan Runtai International and French Auchan Group, Gaoxin Retail has integrated its retail business of RT Mart and Auchan in mainland China, surpassing Wal Mart and Carrefour in terms of sales scale and single store profit, becoming the largest and fastest growing hypermarket operator in China.

Due to the difficulty of chain retail enterprises listing in China, many enterprises have moved to the Hong Kong capital market. However, the success rate of domestic retail enterprises in entering the capital market this year is not high. Only Shanghai Xujiahui Shopping Mall, Wenfeng World, Ningbo Sanjiang, Gaoxin Retail and other chain retail enterprises successfully landed in the capital market. Hundreds of enterprises such as Hongqi Chain and Shijiazhuang Beiguo Group are still waiting in line.

Comment: Financing store expansion is a competitive trend in the retail industry. Facing the continuous entry of multinational retailers, listing has become the best choice for the integration and expansion of traditional retail enterprises.