The Market Share Of Huarun Wanjia And Tesco Will Reach 8.8%.

"P" has been included in the 131 stores and shopping centers of the world's third largest retailer, T ESCO, and the Chinese market. Huarun group's participation in bidding for Li Jiacheng's PARKnSHOP supermarket has been confirmed recently.

Starting from the comprehensive acquisition of Wanjia department in 2002, in the past 10 years, Huarun group has successively swallowed down 11 supermarket brands in Jiangsu, Ningbo, Tianjin, Xi'an, Wuxi and Guangdong.

According to the latest research ranking of K Antar Worldpanel, the market share of Huarun Wanjia and T ESCO Tesco will reach 8.8%, so that it will surpass Gao Xin retail and WAL-MART, and the market share in the mainland will rise from third to No. 1.

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< p > according to the "China retail force 2013" jointly issued by China Chain Store Association and DDT, the annual report data of Listed Companies in 2012 showed that business income and net profit increased by 12.2% and 7.7% respectively, and the growth rate of operating income dropped significantly, and net profit for the first time appeared negative growth for many years.

Correspondingly, Huarun's retail sales in the first half of 2013 increased by 13.7% compared with the same period last year, but net profit dropped by 63.7% over the same period last year.

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< p > under the situation of market downturn, the state-owned enterprises with state-owned assets are frequently taking advantage of the industry's shuffling and constantly expanding their territory.

Industry exclaimed: will China's retail industry enter the "Huarun era"? Is oligopoly a trend? "/p".

< p > chicken with hormone? < /p >

< p > "economic growth is slowing down, and retail enterprises are also slowing down the pace of expansion. This is an opportunity. Rapid expansion is a good choice."

Zhao Ping, an associate research fellow at the Ministry of consumer economics of the Ministry of Commerce, said Huarun's strategy in the past two years has increased its speed of expansion.

At the same time, Huarun's financing ability is strong, compared with foreign capital, there is no pressure on the home country market.

Many retail giants in China have been in a low ebb due to the winter of their home market. The profitability of the market has declined significantly, and the expansion is facing great pressure.

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< p > M & A has been Huarun's core strategy to catch up with its rivals in the past ten years.

Beginning in 2002, Huarun started its acquisition of Wanjia department store, and successively took Jiangsu Suguo, Tianjin Yue Tan group, Ningbo cikelong, Tianjin home world, Xi'an love family, Shenzhen min run, Wuxi Yongan, Guangzhou Hongcheng supermarket, Jiangxi HONGKELONG supermarket, and merged T E SC O Tesco.

With the acquisition, Huarun's retail business also jumped from HK $55 billion 100 million in 2010 to HK $70 billion in 2011, and it soared to HK $83 billion 500 million in 2012.

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Compared with the previous stage, the acquisition of foreign-funded enterprises is not only the first time for Huarun, but also a precedent in many retail enterprises in China. < p >

Ding Liguo, a senior retail business expert and first retail network president, told Nandu reporters that after the acquisition, Huarun could absorb the management experience of the retail giant and help it go overseas.

Because of the international management experience of the board and team, this is a good start for bidding for PARKnSHOP and even for Taiwan, Southeast Asia and other markets.

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< p > but Ding Liguo thinks that Huarun, a central enterprise, must become a retail magnate and take the road of marketization and internationalization.

"There will be great changes in Huarun's management system.

The breakthrough is Huarun's integration of all business formats, the entire retail sector and T ESCO.

Since the merger, all managerial and administrative powers have fallen on joint ventures. "

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< p > however, Huarun's acquisition strategy is only a strategic success.

Ding Liguo said that the acquisition of Tesco is beautiful, but whether the merged board can operate efficiently, and whether the management team is tolerant is quite a test.

"It's like chicken eating hormones. It becomes very big. How can we keep it in step, not make it indigestion?

This is a question that Huarun needs to consider. "

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< p > business integration into number one enemy "/p".

< p > in fact, not only epitaxy and expansion, but also the expansion of Huarun's retail sector.

The survey found that in addition to the traditional hypermarkets and medium-sized supermarkets of Huarun, the group also opened 11 shopping formats, including community shopping centers, high-end supermarkets, convenience stores, personal care shops, wine cellars and coffee shops.

As of the first half of this year, its retail network exceeded 4400.

According to Huarun's insiders, with the increase in rents, the cost of property in the retail location is rising, while Huarun is developing synergy and reducing costs through the collaborative development of many new formats.

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< p > however, although Huarun is rapidly becoming the first industry in the enterprise scale and market share through mergers and acquisitions, the industry believes that the acquisition of an enterprise is not difficult for Huarun. The key to deciding Huarun's future development is whether it can integrate the acquired enterprises into a "1+1>2" effect.

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< p > the "marriage" between Chinese and foreign retailers has not been very smooth.

Foreign companies tried to open up the Chinese market quickly through the acquisition of Chinese retail enterprises many years ago. But the acquisition of Tesco by T ESCO, WAL-MART's acquisition of good Mart results showed that the difference between management and corporate culture has become an insurmountable gap in the integration process of Chinese and foreign retail enterprises.

Zhao Ping believes that Huarun's current challenges lie mainly in two aspects.

First, as a listed company, in the face of shareholders and shareholders demand for profitability, whether it can make quick profits in the short term; second, whether it can run Huarun's business philosophy and enterprise culture to the acquired enterprises.

After mergers and acquisitions, the necessary input in the integration of resources has increased the difficulty of profitability.

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< p > according to the earnings report, Huarun retail business in 2010 profits of HK $1 billion 930 million, but by 2011, it fell 10% to 1 billion 736 million Hong Kong.

"This should be influenced by the acquisition of Jiangxi Hong long long and a drugstore, showing Huarun's indigestion."

A securities analyst said Huarun's net profit was 2 billion 871 million yuan in 2012, but its net profit fell 63.7% in the first half of this year, only HK $637 million.

In this situation, the integration of Huarun and T ESCO Tesco is facing heavy profits.

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< p > "the difficulty of pnational operation lies in the integration of culture. This takes a long process and even has the possibility of failure.

Such as overtime, in the country, more dedication, self sacrifice and dedication to enterprises, but in Europe, personal time is protected by law, advocating a more self life way, so that they may not want to work overtime.

Zhao Ping explained further.

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< p > in addition to the challenge of cultural integration, it is another difficult problem for Huarun to connect and not to lock up.

The scale of enterprises continues to expand, but enterprises are still in their respective camps.

Including the former acquisition of Su Guo, Hong Kai Long, etc., although Huarun venture holding, but management is still dispersed.

"To be a chain retailer truly, we must become a whole.

It's time for Huarun to integrate all the acquired companies and return them to Huarun China.

Ding Liguo said.

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