Resistance To Development Of Retail Sales In China

In recent years, with the increase of consumption level and purchase consciousness of Chinese consumers, Retail formats in China Is changing quietly. In order to maintain sustainable development, Chinese enterprises are facing challenges brought by the retail environment. How to improve the retail platform to adapt to changes is a pressing matter of the moment.

A few days ago, in August, Cci Capital Ltd (hereinafter referred to as Yun Yue investment) released the market observation analysis report, "China's retail format change". Generally speaking, when the per capita GDP of developed countries reached 8000 US dollars, the retail industry of standard supermarkets, shopping centers and hypermarkets would be gradually oriented to meet the needs of consumers, and gradually began to reform and innovate. And China is at this turning point: first tier cities such as Shanghai, Beijing, Guangzhou and so on, per capita GDP in 2011 has exceeded 10000 dollars; at the same time, as of now, the number of shopping centers in China has increased by 10% compared with the same period last year, reaching more than 3500.

According to the report, the purchasing behavior of Chinese consumers is gradually moving from the traditional department store format to a new subdivision of standard supermarkets, hypermarkets, convenience stores and shopping centers. Although in the eyes of traditional retailers, due to the high cost and low profitability, the development of traditional department stores is facing restrictions. But the rising operating costs make retailers have to resist new investment formats.

According to statistics from China Chain Store Association, in 2012, the top 100 retailers in China experienced 21%, 20.5% and 16% rise in rent, labor costs and electricity charges. It is reported that in the specialized stores, supermarkets, department stores and other entities retail sales growth slowed down at the same time, with the rapid rise in labor costs such as labor and rentals, its profitability has been declining, profit growth has slowed down considerably.

According to the compilation of annual reports of listed companies by the China National Business Information Center, in 2012, the median profit margin of 29 listed companies in the top 100 retail enterprises was 8.8%, a 11.6 percentage point decrease over the same period in 2011, a total net profit of 11 billion 800 million yuan, a decrease of 8% compared with that in 2011, and 11 net profits in 29 listed retail businesses.

Against this background, foreign retail enterprises, which have always been brilliant, also show signs of declining influence. According to the statistics of the China National Business Information Center, in 2012, there were 22 foreign-funded retail enterprises in the top 100 enterprises (only the retail entities in retail stores), the number was flat compared with the previous year, and 22 foreign retail enterprises realized sales of 408 billion 950 million yuan, accounting for 17.2% of the total sales volume of the total number of enterprises, accounting for 0.4 percentage points lower than in 2011.

Insiders pointed out that at present, some retail enterprises have "self discarded martial arts", although they have business names, but some of them do not buy and sell. Some department stores and supermarkets no longer strive to improve their own business level, but earn profits through rental counters, factories and shops. Traditional retail enterprises Problems such as backward management mode, low organization degree and weak innovation ability are becoming more and more prominent.

Yun Yue investment believes that the key to the survival and development of retailers is the cost and scale compared with the traditional retail strategy. Retailers need to make detailed plans for the construction and development of channels, such as Carrefour, WAL-MART, and so on. Westerfield Such multinational retail giants remain competitive. Street side shops and localized couples shops are facing the risk of being eliminated because of rising costs and lack of bargaining power to suppliers. At the same time, the retail formats of street side shops are in sharp contrast to the evolving shopping concepts of Chinese customers. Chinese customers increasingly attach importance to the one-stop shopping experience in shopping, dining and entertainment in the central area.

"With the fierce competition among various retail formats, consumers are no longer satisfied with the compact display of all kinds of brand goods in traditional retail formats. Instead, they prefer to have high quality goods, various promotional activities and good shopping experience. With the new retail formats having higher barriers and stronger brand recognition, such changes pose a challenge to most retailers. " Cloud month investment responsible person said.

Compared with the bottleneck of traditional retail industry, China's online retail market is developing at a high speed. The rapid transition of mobile Internet, big data and cloud computing technology is the precondition of all trends and changes. The development of these technologies has not only changed consumer behavior, and has found new consumption demand, but also made it possible for businessmen to meet these needs accurately and quickly.

Guo Geping, President of the China Chain Store Association, suggested that retail enterprises should respond to the rising cost. The direction of future change should be from scale to efficiency and efficiency, and from improving meticulous management to improving single point efficiency.