Market Segmentation Of China'S Retail Industry Is Obvious.

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It is predicted that after 10 years, China's total personal consumption will double, becoming the second largest consumer market in the world after the United States.

Department stores, large supermarkets, convenience stores, specialized shops, exclusive stores, shopping centers, discount stores, storage stores, online retail and other formats show their abilities.

According to the development of Western retail formats, there is an inevitable link between the per capita GDP level and the emergence of new formats.

For example, after GDP per capita reached US $8000, online retailing, warehousing supermarkets, shopping centers and other formats began to develop rapidly.

According to the data released by the International Monetary Fund, China's per capita GDP reached 4283 US dollars in 2010. According to the data of provinces and cities, the per capita GDP of Beijing, Shanghai, Shenzhen, Guangzhou and other developed regions has already exceeded US $10 thousand, and the corresponding retail innovation formats are also developing more mature.

However, compared with the developed countries, the development of domestic retail industry is still at an initial stage. Taking department stores as an example, although the market scale of China's department stores has increased by 12.7% over the past 5 years, the market size of China's department stores is expected to grow to 10875 yuan in 2015.

But the total number of more than 6800 stores in China is still far below that of more than 42000 in the United States.

In terms of per capita indicators, China has an average of 5.1 department stores per million people, far below 128 in the United States.

The business area of nearly 55 thousand square meters per million population in China is far lower than that of developed countries such as the United States, Japan and the United Kingdom.

Therefore, compared with the development of department stores in foreign developed countries, we can see that the future development of China's retail industry is still very large.

China

Development reasons 1: industry concentration is not enough, lack of scale advantage.

The market share of the top three companies in China's department stores is only 5.6%, while the market share of the top ten companies is only 13.3%, far below the market concentration of the mature markets in Europe and the United States, according to information from Europe consulting.

In France, the market share of the top three department stores was 92.5%.

The top three in Korea accounted for 77.5% of the market share.

The reason for the development of China's retail industry: Two: the development of domestic retailing is not balanced. Many retail businesses and even many multinational companies still focus on a few big cities in the past.

The more than 700 cities of three or four cities that contribute to 60% of China's total urban consumption are often ignored.

Therefore, as the number of shopping centers in the first tier cities tends to be saturated, the market competition is becoming increasingly fierce and the investment cost increases year by year, more and more developers and retailers focus their attention on the second and three tier cities. Compared with the second tier cities, the market gap of the three tier cities is even bigger.

By the end of 2011, there were 2795 shopping centers in China, including 821 first tier cities, second tier cities, and 752 shopping centers.

Most of the three cities in China accounted for only 544.

The reasons for the development of China's retail industry three: the difference in management level is large.

Although China's supermarket industry has a high degree of industry concentration, the proportion of supermarket top 10 sales accounts for 60%-70% above the sales quota, leading to a relatively large gross profit margin and an upward trend.

However, the supermarket industry is facing a huge pressure of foreign market competition.

According to the data of China Chain Store Association, the proportion of foreign supermarkets in 100 supermarkets has increased year by year. Foreign supermarkets have obvious advantages over local supermarkets in terms of procurement, supply chain and management experience.

How to learn these advanced aspects in competition becomes the key to success or failure.

The reason for the development of China's retail industry four: Transformation of formats.

In December 2008, the Ministry of Commerce and the Ministry of agriculture jointly issued the circular on the pilot work of agricultural super docking, promoting the circulation mode of "supermarket plus base" for fresh agricultural products, and guiding large chain supermarkets to directly link production and marketing with farmers' professional cooperatives producing fresh agricultural products.

Supermarkets will gradually replace the farmers' market as the main channel for fresh circulation and operation of Chinese cities, and the innovative operation of fresh operations will also effectively break through the existing circulation system in China.

From the current purchasing channels of Chinese supermarkets, 42% of the chain retail enterprises take the wholesale market as the main purchasing channel, 16% of the enterprises take fixed bases as the main purchasing channels, and 42% of the enterprises purchase the same proportion from the above two channels.

In the future, when the "agricultural super docking" is really realized, the specialized fresh supermarket can be regarded as a good mode. The huge market makes the fresh supermarket known as the "blue ocean".

On the whole, there is no doubt that the Chinese market is big, the consumption capacity and the future development opportunities of the retail industry are all, so the rest is how to find opportunities in these blue seas.

Opportunities for development are often problems in development, and the key to the problem lies in the current distribution pattern of Chinese retail.

It is precisely because of this pattern that industry concentration degree is not high, development is not balanced and so on.

The market segmentation of China's retail industry is too obvious, and there are separate leading enterprises in different market areas, such as northeast Zhongxing commercial, commercial city, Eurasian Group, Changbai group, Qiu Lin group, etc., Wangfujing department store, Xidan shopping center in North China, Bazhong joint stock, new world, East hundred group, Ginza mall and so on.

The result of the separatist business directly led to the difference of "full hunger" of enterprises due to the "fat and lean" in their area. The enterprises in North China, East China and Southern China with higher GDP level had different business performance.

Naturally, the foundation of WAL-MART's retail giant has been lost.

The development history can be seen that its development in the United States completely depends on the "cell reproduction" from 1961 to now, mainly depending on the location town.

At the same time, the development of domestic retail enterprises is contrary to the trend of the industry.

Who can break the pattern of separatism, from a national perspective, who will become the overlord of China's retail industry.