100 Yuan, Including 60 Yuan? What Exactly Do Consumers Buy?

　　 Admission fee Increased Supplier Cost and burden

Recently, the CCTV financial channel survey found that, on the one hand, the entry fee is constantly encroaching on the reasonable profit of the manufacturers, and on the other hand, it has been exploiting the pockets of consumers, which has become an important factor in the high price of domestic products. Then, what is the fundamental reason for the entry fee? Is the entry fee really the "killer" that pushes prices up? Shenyang How does the retail industry view the matter?

Original offence of admission fee

At the end of 2010, because of dissatisfaction with Carrefour's higher entry fees and restrictions on the rise in prices, the instant noodle production company announced that it had stopped supplying Carrefour to the whole country. According to AC Nielsen data in March 2010, the market share of Kang Shifu instant noodle sales and sales rose to 42.6% and 55.7% respectively, ranking first in China. At the same time, a retail industry insider has also told the media: "like Procter & Gamble, Unilever, such as daily chemical giants in Carrefour and WAL-MART negotiations, often can occupy a favorable position."

Not long ago, the famous Liaoning listed wine company, "Europe China Manor", the general agent of Shenyang, Lin liangyue, encountered a lot of difficulties in Shenyang. He told reporters that as a listed company, "Ou Hua Manor" had to make a special policy to open up the market as soon as possible, that is, every company settled in a retail business, the company paid some capital subsidies for the sales agent, "the amount of tens of thousands of yuan is different, in fact, is to cope with high admission fees."

Lin Liang general manager briefed reporters about the entry threshold of a large supermarket chain in Shenyang: admission fee is 5000 yuan per year, the deposit is 5000 yuan per year, and the annual sales fee and promotion fee are about 3000 yuan each year. "But this is not the highest threshold. Some businesses only have an admission fee of up to 10000 yuan!" Pei Liang, Secretary General of the China Chain Store Association, once said, "developed countries have formed direct docking between large producers and large retailers". Take Japan as an example, the manufacturing industry is mainly engaged in product R & D, production and brand promotion. All the intermediate sales links are mainly concentrated on dozens of large distributors. Therefore, it is difficult for retailers to squeeze suppliers through entry fees.

The fact also proves that when the producer market concentration is high and the discourse power is big, the channel hegemony of retailers will be restrained. For example, Kangshifu, Procter & Gamble, Unilever and other enterprises often play a favorable role in game with channels.

Double extrusion

"When the producer market concentration is high and the discourse power is big, the channel hegemony of retailers will be restrained. The origin of Chinese approach fee is the monopoly of retailers on channels, but the relevant laws in China are not perfect at present. Yu Qun, chief executive of the Northeast commercial network, believes that neither the supplier dispersion nor the high tax burden of retailers is not the fundamental reason. The root of the spread of fees is the monopoly of channels. At present, there is a lack of relevant laws in China to regulate them. As early as 2006, the Ministry of Commerce and other 5 departments jointly promulgated the "retailers and suppliers fair trade management measures", which regulated retailers' behavior of charging suppliers. However, strong retailers still rely on their strong channel capabilities to disguise fees for suppliers in disguise.

"Foreign laws strictly restrict channel monopoly, and the mode of entry fee has been hard to maintain abroad." The chief executive of a shopping mall in Shenyang told reporters that the practice of collecting fees for upstream suppliers originated in the United States, but this mode has not worked in developed countries, and is still maintained in some developing countries. "Taking a foreign supermarket chain as an example, since entering China in 1995, it has been relying on squeezing upstream suppliers' entry fees for low-cost expansion."

Statistics show that most of the profits of modern retailing come from the operation of enterprises themselves, and earn the difference between the purchase and sale of products. The proportion of promotional service charges to suppliers is very low, generally less than 10%. However, at present, the entry fee mode adopted by the domestic retail industry relies entirely on squeezing upstream suppliers to survive.

In 2010, a survey of nearly 100 fast moving consumer goods suppliers showed that in 2010, the overall index of vendor spending on goods increased by 0.01 over 2009. The report also points out that the rising price of various raw materials makes the cost of some suppliers high, and the retail enterprises increase the cost of entry, management, display, promotion, festival and so on, and generally lower the retail price, which leads to the decrease of the comprehensive satisfaction of the suppliers to the retail enterprises. This means that domestic suppliers can not face the double squeeze of rising production costs and increasing channel costs.

Price observation

Although the forced admission fee has increased the cost and burden of suppliers, does this mean that it has become the main reason for the current price rise? In order to investigate the close relationship between them, the reporter first combed the price movements in Liaoning in recent months and the floating situation of the ex factory price.

By contrast, we can see that Liaoning's CPI (consumer price index) has increased by 0.2% in 1-4 months, which means that prices are generally rising, while PPI (producer and consumer goods price) has been increasing, but the overall increase is obviously greater than the CPI increase.

Through this rough comparison, we can judge that the current price rise is directly related to the rising cost of production materials and the rise in factory prices. "You can say that the admission fee is not legal, but you can't say that the admission fee is the chief culprit of pushing up prices. This hat retailer can't afford to wear it!" a planning manager of a famous shopping mall in Taiyuan Street expressed strong dissatisfaction with the recent media connection between the admission fee and the price rise of the mall. "You can say that the admission fee is a hidden rule, but this latent rule has existed more than ten years ago. Is it the price that our retailers have given over ten years ago?"

The planning manager also gave a detailed analysis of the rising trend of raw materials in recent years. "In February, the 38 largest industrial sectors in Liaoning, the largest increase in PPI was the oil and natural gas extraction industry, expanding by 5.2 percentage points. By March, the biggest increase in PPI was the oil processing, coking and nuclear fuel processing industry, which expanded by 3.1 percentage points. What does this mean? There is a direct relationship between the rising price of consumer goods and the rising cost of means of production. "

Collective questioning

During the interview, many directors of retail enterprises admitted that at present, the mode of cooperation between most retail enterprises and suppliers in Shenyang is "joint venture mode". In this mode, the benefit shared by department stores and suppliers depends largely on the status of their respective brands. "Mei Mei department is the best example, because brand suppliers are too strong, which causes everything to look at the face of the brand, and then lead to the eventual failure of the store."

During the reporter's investigation, many people in charge of retail business in Shenyang expressed strong doubts about the "admission fee pushing up prices". In the 22 shopping malls or department stores that were randomly surveyed, apart from 1 people who refused to take the stand, the other 21 said they could not understand the cause and purpose of the law. 100% of the 12 major supermarkets surveyed were against this statement.

According to statistics obtained from the commercial sector in Shenyang, more than 20 new shopping malls were opened in Shenyang last year. However, the emergence of many large shopping malls did not increase the gross profit margin of many shopping malls in Shenyang City. Instead, there appeared a phenomenon of turnover and profits hanging upside down. The reporter learned from a shopping mall in Zhongjie commercial street that the sales volume of the shopping mall on Christmas Eve was higher than that in previous years, but the profit did not rise or fall. A person in charge of the shopping mall said that this is not just the situation in this shopping mall, but also happens in many shopping malls, including Zhongjie and Taiyuan street.

Ma Yu, a researcher at the Ministry of Commerce, said in an interview recently that the tax burden of China's retail enterprises is relatively heavy. "There are even extreme claims that in terminal consumption, such as a consumer product, selling 100 yuan, maybe more than 60 yuan is the cost of taxes and fees, and the cost of real goods may be about 30%."

According to incomplete statistics, China's formally registered commercial retail enterprises need to pay more than ten kinds of taxes, including value-added tax (17%), urban construction tax (7%), educational surtax (3%), enterprise income tax and so on.

The high tax burden of retail enterprises is squeezing the profits of enterprises. This high tax burden will eventually shift to upstream suppliers and downstream consumers. According to the data of the National Information Center, the average profit rate of the chain retailers in 2007 was only 0.85%, the net profit rate of the chain top 100 was 1.22%, while the average profit rate of the foreign chain retailers was 2.22%.