Take Stock Of 2011 Ten Key Words In China's Retail Industry

2011 is an eventful year for China's retail industry. Foreign retail giants in this year greatly reduced the scenery, WAL-MART, Carrefour double trap "price deceive door", easy to buy defeat, Lotte Mart closed shop, four foreign capital retail giants "change handsome"; experience short time. Blowout After the development, the group buying website went into the winter overnight; a battle in Taobao mall reflected the pain of the transformation of e-commerce enterprises.

Compared with foreign-funded enterprises and electricity suppliers, the traditional retail enterprises in China are slightly more relaxed. Suning Appliance and so on enter the electricity supplier, Shanghai Xujiahui mall, Wenfeng world, Ningbo Sanjiang and other competing for landing capital market, retail business tasting micro-blog marketing has added a touch to this "autumn". Gorgeous Color...

Behind the entry and retreat, success and failure, inventory of 2011 of colourful beauty may be a correction for 2012 of the retail industry. trajectory 。

Key words: interruption

Parties: Carrefour, Master Kong, etc.

Playback: through the bank loan, the transfer of the cost to the supplier to collect the "entry fee" and the repayment of money to achieve the profit mode of operation, retailers have been very strong in getting along with suppliers. However, with the increasingly fierce competition in the retail industry, the contradiction between retailers and suppliers is intensifying. At the beginning of the year, after the storm that Liu Fu jewellery was asked to withdraw from its core store because of its reluctance to enter a new world department store, Kaf, the biscuit giant, was banned from Lianhua's entire line because of the lack of contact points with the Lianhua supermarket. Subsequently, Carrefour persisted in deducting half of the 0.2 yuan price rise of the master's classic series, while Kang Shifu thought that Carrefour's return request was too harsh. After several rounds of negotiations, the two sides failed to produce results.

Comments: uneven distribution of interests is the root cause of the contradiction between supply and demand. With the increasingly fierce competition in the retail industry, retailers will not be able to earn profits by collecting "entry fees". It is imperative to integrate supplier resources and establish partnerships with suppliers. For suppliers, it is necessary to become a strong brand aggregate through merger and integration, so as to have the right to speak.

Keywords: price fraud

Parties: Carrefour, WAL-MART, etc.

Playback: at the beginning of this year, foreign retail giant Carrefour and WAL-MART had to pay for the price game they played in China. The national development and Reform Commission issued the first ticket to foreign retailers for Carrefour and WAL-MART because of the existence of fictitious prices, low prices for customers, high price settlement, noncompliance with price commitments and misleading price markup. In addition to ordering the two supermarkets to make corrections, they also confiscate illegal gains and impose a penalty of 5 times the illegal gains. If no illegal gains or illegal gains can be calculated, the maximum penalty is 500 thousand yuan.

Comment: behind the price deception of Carrefour and WAL-MART in China is the fierce competition between Chinese and foreign retailers. With the competition from foreign retail giants, a large number of local retailers have successfully upgraded. After experiencing the initial low price advantage, multinational retailers are getting worse in China. Facing the competition of domestic retailers, these retail giants are not thinking about how to adapt to China's national conditions and find effective marketing ideas, but they play a price game. Only when those fictitious prices and tricks were exposed, Carrefour and WAL-MART lost not only their market share, but also their brand image and the integrity of transnational corporations.

Keywords: cross-border operation

Client: Suning, Jingdong mall, etc.

Playback: retailers' competition is expanding from offline to online. As e-commerce develops more and more, online and offline development has become the common choice of many retailers. Starting from selling books on easy buy online, Suning Appliance began to set foot in the field of electronic commerce, and threw out the strategic plan for the next 10 years, trying to synchronously develop online and offline, changing the single role of traditional household appliance retailers.

The performance of online sales of electronic goods on the traditional electricity supplier Jingdong mall is obvious. Its rapid expansion has also begun to get involved in department stores. Dangdang and Amazon network are selling books to attract popularity while expanding sales to department stores. Online department stores have become the common goal of many retailers.

Comments: whether online or offline, for retailers, this is only the expansion of marketing battlefields and ways. When consumers are looking for convenience, they will pay more attention to whether the quality of after-sales service will be improved.

Key words: defeat

Litigant: Matt mart, easy buy.

Playback: following the sale of 7 stores by the new world group in Korea, the Lotte Mart, also from Korea, was reported to have failed in China's performance for 3 consecutive years. Lotte Mart entered the first store in Shandong market, Lotte Mart, Qingdao Chengyang shop, which was closed in January.

Lotte Matt, a subsidiary of Korea Lotte Group, has entered the Chinese market in June 2008 by acquiring Wan Kelong. Up to now, Lotte Mart's number of stores in China has reached 87, and its rapidly expanding overseas market scale has exceeded the size of 84 stores in Lotte Mart's South Korean stronghold, but its performance has suffered losses. Lotte Matt, a Qingdao legal person established in 2008, lost 1 billion 700 million won, 12 billion 700 million won and 16 billion 600 million won respectively from 2008 to 2010.

Comments: localization difficulties caused the slow development of Korean retail enterprises in China. The layout strategy of key cities in early stage was successful, but later development was trapped in the expansion trap, the expansion plan was too advanced and the investment was too blind, which led to its slow return on investment return and increased business pressure. If foreign retailers can not make rectification in terms of internal control capability and localization strategy, then the pace of development in China will continue to slow down.

Key words: "blending gate"

Litigants: Flavour Noodles, Kentucky Fried Chicken, etc.

Playback: the bone soup of the flavor thousand noodle noodle soup is made by blending the concentrate solution instead of the pig bone cooked by publicity. The 7.5 yuan pure soybean milk sold by KFC is made from soybean milk powder instead of on-site grinding. After experiencing melamine milk powder and lean meat essence, consumers began to pursue foreign brands, regarded foreign brands as a symbol of safety and reliability, and paid several times the cost of products to enjoy the so-called high quality of foreign brands. However, they once again encountered the heavy blow of "noodle soup gate" and "Kentucky fried chicken door".

Comment: after the "bone soup gate", the market value of the noodle dropped significantly. Foreign brands have deceived Chinese consumers and lost the integrity of enterprises. The end result is hurting people and hurting themselves. For domestic brands, the same is true. In addition to the lack of corporate social responsibility and the lack of relevant standards, inadequate supervision is also the cause of the emerging food safety problems.

Key words: suddenly "winter"

Litigants: search mission network, two regiment network, etc.

Playback: after a short period of "blowout" development, the hot situation of the "thousand regiment" war has ceased to exist, and the group buying industry has entered a cold winter.

Although the huge scale of Internet users and convenient network payment system have prompted group buying websites to take root quickly in a short time, the competition in the industry is fierce due to competing to lower profits and attract customers. In addition, previous excessive expansion and recent capital withdrawal caused some group buying websites to break up the capital chain, and the winter of group buying websites came earlier and colder. The "disappearing" group buying website gradually increased, and the number of group purchase websites closed in October was as high as 456.

Comment: behind the sudden "winter" of group buying website is the congenital deficiency of this new business form in China. Due to the low entry threshold, many group buying websites rush to the top, making it very uneven in the distribution of interests with merchants, and such a high threshold operation will also knock down those group buying websites that are not firmly rooted. The rule of "survival of the fittest" won by the people with strength will appear again in the process of buying the website of group buying.

Keywords: Taobao "hurt" City

Client: Taobao and its small and medium sellers

Playback: in October, Taobao merchants announced the renewal of investment and related rules next year, which were opposed by some small and medium-sized sellers. Some of the small and medium-sized sellers jointly formed an anti Taobao alliance. They attacked some of the Taobao sellers who were honest and trustworthy. They led to online stores selling all the goods, including Han Du Yi she, Ou Sha and Canon official flagship store, and the operation was stagnant, in order to force the Taobao mall to give up the adjustment of the rules. Since then, the Ministry of Commerce has made a statement, and hopes that Taobao mall will take positive actions to respond to the reasonable requirements of relevant businesses, especially small and medium-sized businesses, and shout to Taobao's small and medium-sized sellers. After that, Alibaba group chairman of the board of directors, Ma Yun, publicly made some adjustments to some policies, and issued loan guarantees for small and medium-sized sellers, and invested in establishing consumer bonds.

Comment: behind the conflict between Taobao and small and medium-sized sellers, there is an objective contradiction between the demand for bigger and stronger enterprises and the protection of the rights and interests of many weak merchants. The pain of the transformation of e-commerce enterprises reflects the fact that the construction of e-commerce legal system lags behind the development of network market. It lacks perfect and effective anti-monopoly legal system, intellectual property protection system, economic dispute mediation system and consumer rights protection system.

Key words: changing

Client: WAL-MART, Tesco, etc.

Playback: WAL-MART Chongqing shop selling fake green pork incident again triggered a trust crisis, WAL-MART China president and CEO Chen Yaochang was forced to leave. In the meantime, 3 other international retail giants in China also appeared in the situation of executives turnover: Carrefour Group Chairman and CEO Lars announced in August that the president of Carrefour Greater China will be replaced by Thierry next year. The British retail giant Tesco has made personnel changes in April this year, and appointed a new executive vice president. In September 30th, Metro announced that He Zhewei would replace Cai Tianle as Metro's China president and chief operating officer.

Commented: the aura of foreign retail enterprises has gradually faded away, and the preferential policies of enjoyment have been decreasing. The advantages of local enterprises in many aspects have begun to appear, which has intensified the competition in the industry. Faced with the problems of consumers' purchasing behavior and obvious differences between Chinese and Western cultures, how to adapt to the needs of Chinese market has become an important problem facing foreign retail enterprises.

Keywords: micro-blog marketing

Client: traditional retailer

Playback: after the "touches", micro-blog has become the new favorite of retailers. Micro-blog is regarded as the best marketing tool by retailers. As long as we can attract a large number of "fans", the information released will be forwarded and browsed quickly, and behind every "fans" is a consumer. Such a fast, instant and low-cost channel will be favored by all kinds of retailers. So, ornaments, home decoration, clothing, tourism, air tickets... More and more retailers are testing micro-blog's marketing and opening up official micro-blog to accumulate popularity. Micro-blog is just like a super department store.

Comment: micro-blog as a new marketing mode, its timeliness and interactivity enable enterprises and consumers to discuss problems face to face. In order to facilitate the display of corporate image and quality service, they also put forward higher requirements for enterprises. As a matter of fact, the traditional retailer's new marketing mode in operation is aimed at increasing profit margins, but these practices can only help enterprises gain more customers and business returns to a certain extent. If the traditional retail enterprises want to control the profit space in the ideal range, they should also seek breakthroughs from the level of their own business models.

Keywords: listing

Litigants: big fat hair, Auchan, etc.

Playback: after the antitrust review, the big Rand China company and the French Auchan China company were bundled and listed in Hongkong in July, becoming the first large list of the comprehensive sex business super enterprises listed in recent years. As a joint venture between Taiwan RT international and France Auchan group, Gao Xin retail has integrated its retail business with two brands of big RFA and Auchan in mainland China, surpassing WAL-MART and Carrefour on sales scale and single store profit, becoming the largest and fastest growing hypermarket operator in China.

Because retail chains are difficult to list at home, many companies are turning to Hongkong's capital market. However, this year, the success rate of domestic retail enterprises to enter the capital market is not high. Only chain retailers such as Shanghai Xujiahui mall, Wenfeng world, Ningbo Sanjiang and Gao Xin retail have successfully landed in the capital market, and hundreds of enterprises such as Hongqi chain and Shijiazhuang North group are still waiting in line.

Comment: financing expansion is the trend of competition in the retail industry. Facing the continuous entry of transnational retailers, listing has become the best choice for traditional retail enterprises to integrate and expand.