ASEAN Electricity Supplier Development Is Still In Its Early Stage

Although the total population stood at 8% of the global population, the six retail economies in the region combined less than 1% of the total retail sales worldwide.

This is in sharp contrast to China and Japan. We should know that Japan and China occupy 10% and 15% of the total electricity market respectively.

The underdeveloped network service system is a major obstacle to the development of electricity providers in the ASEAN region.

In some areas, private investment in high speed networks is often considered a high-risk investment.

Moreover, for example, Indonesia, the distribution service system needs to link eighteen thousand islands, which is a huge challenge for logistics infrastructure construction, and this geographical distribution makes the gap between the rural and urban areas more polarized.

For example, pport infrastructure, due to the lack of effective road network, coupled with the unstable customs tariff rates imposed by various customs on different product categories, also poses great challenges to the development of electricity providers in the ASEAN region.

The delivery process needed to execute online orders must be smooth and reliable so that consumers can be satisfied.

Be confident.

Forester, a senior analyst at the Institute, thinks that

If you want to further develop the market, you'd better cooperate with the local mail company to reduce the cost of logistics distribution.

For example, Lazada has established partnerships with more than 60 local express companies and pport companies, and has set up 8 warehouses in the region as its terminal distribution team.

In addition, at the end of this year, the ASEAN economic community will officially run, and the trade efficiency of the region will be enhanced. The links between the countries in the ASEAN region will be more closely linked, which will also play a positive role in promoting the development of e-commerce in the ASEAN region.

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Why do so many retail giants suffer from the decline or even loss of profits?

In a 24 day global retailer activity survey released by the world bank, Richard Ellis surveyed the biggest concerns of retailers in the global expansion in 2015. 47% answered the question of rising costs and sluggish economic forecasts. Only 1% answered the question of foreign direct investment and 2% were lack of logistics networks.

Therefore, the high cost is the first problem that the entity can not evade.

Reporters learned that although Huarun has its own advantages in real estate projects, for most retailers or department stores, leasing is the most important way, even if Huarun department stores, a large proportion of them are rental stores.

"These years have just reached the expiration stage of the 10 year lease, and the rent of many items is going up. This is an unavoidable problem. You have to pay a few times the cost of opening a shop many years ago if you want to see the new store or renew the old shop."

Mr. Shen, who has been engaged in large-scale retail business for a long time, told reporters.

The decline of the environment is also one of the influencing factors. For example, Wangfujing department store pointed out that the decline in its operating income last year was mainly influenced by the macro environment and related policies.

Global retailer activity survey also shows that retailers are slightly hesitant about expansion in the uncertain economic area, and the proportion of retailers who have opened more than 40 stores in the Asia Pacific region has shrunk to 5%.

In addition, changes in the upper level and financial drag are the reasons for the setbacks in some companies' profits.

For example, there were frequent changes in the management of Bu bee Lianhua, and in 2012, major personnel adjustments were made. The former WAL-MART executive Chen Yaochang served as CEO.

But Chen Yaochang's expansion strategy has not stopped the decline in performance, and his position has been adjusted.

Huarun venture said its profit decline last year was mainly influenced by the acquisition of Tesco Tesco. Group management expects Tesco's joint venture to break even in the next three to five years.

Of course, one of the most direct factors is the impact of e-commerce.

Guangzhou friendship said that the diversion of market share by Internet retailing last year is obvious, and the overall growth of the traditional retail industry has further slowed down, with multiple difficulties and challenges intertwined.

Wangfujing department stores are blunt. The rapid development of Internet retailing and cross-border electricity providers has a certain impact on the revenue growth of the company and the industry.

Huarun venture believes that competition from the electricity supplier industry has had a knock on earnings, affecting retail sales in the same store, down 2.6% from a year ago.

Under many challenges, the profit of physical retailers is worrying.