Local Business: Changing The Way And Changing The Same Path

"Get the Central Plains and win the world", accompanied by the rise of central China and the voice of the Central Plains Economic Zone, the wave of high tide, as the birthplace of modern China's commercial war, Henan once again became the battleground of capital struggle between China and foreign countries.

Up to now, Henan's foreign retail enterprises have occupied Henan.

Contrasting with the outsiders' continuous beachhead market in Henan, Henan

Can Henan's local businesses overcome difficulties and reappear in the past?

Zhengzhou's old business: changing blood into a big trend

Denis is not able to get around the current retail business in Henan.

Though not local

Denis, general manager Cai Yingde, told reporters that in order to seize market opportunities, Denis accelerated the layout of the Henan market and expanded the scale of the project to increase market share.

Especially in 2011, it was Denis's opening year.

Almost every month there are new stores open.

In June of 2011, Denis, Anyang, was officially opened in Henan. This is the sixth department store opened by Denis after Zhengzhou.

At present, Denis has 8 department stores and 34 supermarkets in Henan, and 22 department stores and 28 supermarkets are being planned.

But even Denis, a powerful department store, did not occupy the absolute advantage in the whole province, because in the rapid expansion of Denis, his old rival, Kim Bo, had become the leader of the big business group.

Apart from Denis, many other local commercial brands seem desolate and desolate.

A generation of wild Sun Asia has already come to a dim end. After the Zhengzhou Hualian's independent reform, there has been no vitality. The natural commercial buildings have not been known for many times. The home of the Golden Bauhinia and the Bauhinia department is under the command of big businessmen. Most of the "six Golden flowers" that have been echoed in the Henan market are mostly closed.

In November 8, 2011, Henan's old department store Zhengzhou department store also changed its home.

Eurasian Group, a northeastern regiment from Changchun, successfully captured 33.08% of state-owned shares in Zhengzhou department store and became a major shareholder in Zhengzhou department store.

Founded in 1993, the Zhengzhou department store, which has a registered capital of 25 million 569 thousand yuan, has become a time-honored brand for Henan citizens.

It is located in the 27 core business circle of Zhengzhou. In the era of planned economy, it has led the fashion of Henan consumption. Even after several business wars, it is not as brilliant as before, but it still has its own place in Henan market.

A colleague said, "the days in the department store are better."

However, in recent years, with the continuous entry of commercial external forces in Henan, the 27 business circles in the fierce competition have been around. Jin Boda and Denis are in full swing. Beijing Hualian, Baisheng, and Shanghai cities are also eyeing and dividing up a lot of market share. Zhengzhou's department store has gradually changed from "one dominant company" to "tiger's mouth", and the days are gradually sad.

Sleepy thoughts change.

The Zhengzhou department store chose the "people to people" route. The 27 business circles surrounded by the strong enemy made a world of "populace" prices, and the "down jacket" characteristics also achieved dislocation operation, bringing Zhengzhou's state-owned business enterprises a chance to live.

But in the environment of strong enemy's continuous market share, they either change or lose. The department store is no longer willing to occupy the golden status, quietly "soy sauce", but tries to carry out the system reform.

According to Eurasian Group's secretaries, Ms. Lu Zhen, after the Eurasian Group entered the Zhengzhou department store, the Zhengzhou department store will be integrated into the Eurasian Group's overall management system. In the future, the Zhengzhou department store will face consumers with new faces and new positioning.

Local Princes: both offensive and defensive.

Looking at the development of retail industry in recent two years, the retail giants have begun to attack the two or three tier cities at the same time as they rush to occupy the first tier cities.

In the Henan market, DAC and Wanda were very obvious. Local retailers in the two or three tier market are in danger.

In the face of increasingly fierce competition, we should either wait for death or make long-term long-term plans.

Compared with the mentality of a large number of foreign brands entering the Central Plains a few years ago, local enterprises in the two or three tier market in Henan have become more calm.

Some of the local brands have fallen down in the face of the direct game with foreign business chiefs, but others have made a sky.

Such as Kaifeng San Mao, Xu Changpang East, Luoyang big Zhang, Nanyang Wan Delong, Xinyang West Asia and so on, which have certain strength and strong local foundation in the two or three tier market of Henan, they chose the latter.

Take Kaifeng Sanmao as an example, in the face of the challenges of foreign business tycoons, they are doing their best to break through themselves in addition to practicing their own skills.

Today, this local enterprise has already established its own small kingdom in Kaifeng. Not only has it completed the strategic pformation from single supermarket retail format to large supermarket, convenient chain store, and large professional department store in many aspects, but also embarked on the road of diversified development. The project involves entertainment, food processing, clothing, commercial real estate and other fields.

Some local retail businesses choose to keep warm and resist the invasion of outsiders.

In the Central Plains business circles, Xuchang's fat east, Luoyang's big Zhang, Nanyang's Wan Delong and Xinyang's West Asia, known as Henan's local retail trade, "the four King Kong", occupies a pivotal position in the city's commerce.

Moreover, in order to defend the market together and resist the "invasion" of foreign chains, as early as 2001, the owners of the 4 enterprises gathered together and launched the "four Consortium" alliance.

In addition, these local enterprises are more local advantages than outsiders, such as "fat east".

In the business history of Xuchang, department stores, Liancheng commercial building, Tiandu commercial building, Asia Minor, zhid supermarket, nine brother supermarket, silver base supermarket, new beginning supermarket, one peak supermarket, Hongbao department store and other large and small numerous merchants came into play, until today the fat east came to a single show.

In 1995, the fat Dong, who was founded in Xuchang in 1995, started from a smoking hotel. After nearly 20 years of development, it now involves various formats of supermarkets, department stores, franchised stores and convenience stores.

From clothing, home appliances to jewelry, from drugs, restaurants to Cereals, fruits and vegetables, almost every commodity or service that is closely related to daily life has almost monopolized the retail industry in Xuchang with a dense commercial network.

Whether facing the former direct competitor Denis or the big business group now stationed in Xuchang, fat Dong has never been timid, but rather takes the defensive as the attack and pays attention to the enterprise.

Perhaps this is the reason why Xuchang has long been the "commercial stronghold" for more than 10 years. It has become the leader of the local retail industry for many years. After many years, Chuang Tung came to the city cautiously. In Xinxiang, the capital of Henan Province, it opened a super large comprehensive store with an investment of over 100 million yuan and an area of 40 thousand square meters.

This is the first time that fat Dong has come out of Xuchang. It is also the first time that she has shown her bright image to Henan people outside Xuchang.

Besides, Luoyang Da Zhang group.

As a sub center of the Central Plains city group, the Midwest is one of the few cities with GDP over 100 billion yuan. In recent years, Luoyang has attracted a large number of international and domestic commercial giants such as Denis, Wangfujing department store, Carrefour, WAL-MART, and lotus.

The distance between these foreign business giants and Luoyang's local commercial benchmarks is only 1 kilometers, and the close competition has also begun.

Competition is the touchstone for testing enterprise's ability to resist risks and operation.

As a result, with strong indomitable spirit and triumphant belief, Da Zhang has not been defeated by these strong international rivals, but has maintained a good momentum of development in the market competition which tends to be white hot.

Up to now, Da Zhang has more than 60 stores, with a total commercial area of about 200000 square meters, and its business format has also gone from single operation to comprehensive supermarkets, standard supermarkets, community stores, convenience stores, fresh supermarkets, fashion department stores and so on.

At the same time, Da Zhang also walked out of Luoyang, and she laid down her own pieces in Jiaozuo and Sanmenxia.

Future: ups and downs are still unknown.

In recent years, Henan's "business super competition" has become increasingly fierce. Luoyang, Xuchang, Jiaozuo, Xinxiang and other "separatist" parties, only Nanyang, Anyang, Shangqiu and other remote prefecture level market still appears relatively calm, but this situation is changing.

Henan commercial two big crocodile Denis and the big business group are stepping up to catch up with the pace of local market.

Cai Yingde has said that in the next 5 years, Denis will increase investment and strengthen diversified development of retail formats, covering 18 cities and 12 county-level cities in Henan.

"For example, Denis's original 100 acres of logistics and distribution base in the development zone should be expanded to 300 mu, because our current logistics can only be delivered to 30~50, which is far from meeting the needs of our new stores.

In addition, Denis has a large volume of shops in the new city, and the scale of some projects has expanded to 100 thousand square meters, because the retail industry is developing very fast in the local market.

Huangfu, President of DAC Zhengzhou regional group, also said that after 6 years of deep ploughing, Dashang group has opened 30 stores in Henan, but the target of 18 cities is only half completed.

In the coming 3~5, DAC will take Henan as the center and cooperate with the development strategy of the Central Plains Economic Zone, continue to increase investment in Henan, enter all 18 cities in Henan province and some important county-level cities. The total number of shops should reach 50, with the regional retail sales of seven provinces, including Henan, Hubei, Anhui and Jiangsu, to reach 20 billion annual sales.

But Zhang Huiyu, President of Henan commercial trade association, thinks that there is still a big gap between the development of Henan's retail industry and the advanced provinces and cities in the whole country. The main problems lie in the low level of scale, branding, networking and modernization, and the problems of heavy burden, low efficiency and high cost.

Therefore, Zhang Huiyu believes that the short board of Henan's local retail enterprises still needs to be made up, but the outsiders can not adapt to the market in a short time.

In view of the existing problems in Henan's local retail industry, Zhang Huiyu believes that local enterprises should pay attention to brand value building, try to develop free brands, create distinctive business characteristics and provide differentiated products around diversified consumer demands.

Henan's retail market in the Warring States era, who will dominate in the future? Can local businesses revive? How can we revive? We can only wait and see.