Three Or Four Tier Cities Become New Favorites Of Retail And Business Super

< p > 2013, many retail businesses were passing through the store and merger, actively expanding new stores and other adjustments to spend the retail "cold winter". The three or four line cities and some counties became the "new darling" of these enterprises.

Domestic leading retail enterprises have stepped into the three or four line cities, such as BBK, Nanjing China Merchants, e Wu merchants, Hefei department stores, chengshang group, Guang Bai shares and other listed retail companies are all in the three or four tier cities.

The three or four line city is the next blue line of chain enterprises, which has gradually become the consensus of the people in the industry.

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< p > < strong > retail, business super optimistic three or four line market < /strong > /p >

< p > Hunan BBK group recently announced that the company will continue to maintain its pace of opening last year, and plans to open 20-25 stores this year.

Chen Zhiqiang, President of BBK group, said recently that this year will focus on developing markets in southwest Jiangxi, Guangxi, Sichuan and Chongqing.

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< p > except for BBK group, Yonghui supermarket, Huarun Wanjia, Lotte Department store, < a href= "http://www.91se91.com/news/index_c.asp" > WAL-MART < /a >, Carrefour and metro are all planning to expand stores. Most enterprises have taken a look from the first line market to the 234 line market.

With the development of urbanization in China, more and more retail enterprises begin to enter the 234 line market, which is bound to compete fiercely with local retail enterprises.

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< p > the latest monitoring data of the Ministry of Commerce show that during the Spring Festival Golden Week of 2014, the sales volume of the national retail and catering enterprises reached about 610 billion 700 million yuan, an increase of 13.3% over the same period last year, and the growth rate dropped by 1.4%.

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< p > after deducting inflation, the growth rate was 10.8%, which was slower than that in 2008, which was only 7.3% higher than that in the past ten years.

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< p > in fact, in the past two years, under the influence of many factors, such as the economic environment, < a href= "http://www.91se91.com/news/index_c.asp", the impact of electricity supplier /a, and the high rent and labor costs, China's retail market has been in a doldrums.

However, this did not stop the pace of expansion of retail enterprises.

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< p > public information shows that many retail businesses are still expanding this year. In addition to Hunan BBK group, Chengdu red flag chain will expand more than 5064 yuan for store expansion, and plan to open 170 new stores. Fujian Yonghui supermarket plans to open 60 stores, and Huarun Wanjia will continue to expand rapidly, including 78 stores in East China.

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P, not only that, foreign supermarkets are also actively adjusting their shop strategy.

At the end of last year, Tang Jianian, President and chief executive officer of Carrefour Group, China also said that Carrefour strives to cover 100 cities in 3 years. In the next few years, it will continue to develop at a rate of about 20 new stores every year, and will focus on the three or four line market in the central and western regions.

In the fourth quarter of last year, WAL-MART has opened 14 new stores in three or four cities in Hunan, Sichuan, Jiangxi, Henan, Hubei, Yunnan, Shanxi and other provinces.

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< p > < strong > borrowing the electricity supplier to expand the new market < /strong > < /p >

< p > comparing with past statistics, we can see that in 2012, the sales volume of 81 large and medium-sized retail enterprises which only counted by the general merchandise association increased by 8.92% in 2012, which is far lower than the 22.2% increase in 2011.

At the same time, the total profit of the 81 enterprises decreased by 6.14% compared with the same period last year, and the profit margin dropped by 20.21%.

The density of 80%-90%'s domestic second tier cities has been saturated, and the competitors' business models and experience strategies are homogenized.

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< p > with the saturation of retail stores in a second tier city, the consumption level of the three or four tier cities has been raised, and many retail enterprises have begun to sink channels to take advantage of the better location.

Weng Haihui, vice president of Yonghui supermarket, has said that at present, some City outlets have become saturated, and the rent cost of the central area is soaring, which leads to the high cost of opening stores, but there are still many opportunities for the three or four tier cities.

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< p > to develop the three or four line cities, on the one hand, we must seize the market quickly. On the other hand, we must rely on the most rapidly developing marketing channel -- e-commerce.

When WAL-MART announced the start of the layout of the three or four line market, there were professionals who pointed out that WAL-MART's sinking channels will inevitably encounter the "encirclement and suppression" of local stores and some foreign capital stores with existing layout. As the latter, the competition situation faced by WAL-MART can be imagined.

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< p > over the past decade, a number of local retail enterprises have emerged in China's three or four tier cities. These enterprises have accumulated good reputation after years of development, and have gained a lot of management experience for consumers in the local market.

At this time, the introduction of e-commerce and O2O strategy can be regarded as a favorable weapon for expanding the three or four line market.

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< p > Hunan BBK Group intends to set up BBK Agel Ecommerce Ltd, and formally enter the field of e-commerce with the management mode of an independent subsidiary.

BBK plans to use PC+ mobile APP+ micro shopping mall and other online channels, combined with all offline stores, warehousing and logistics resources, to implement the O2O strategy of full channel, full format and whole category.

BBK mall is expected to first cut into online supermarkets (of which 70% products come from offline stores, 30% from online self owned categories) and online appliances, then BBK mobile APP mall and micro shopping mall; and plans to extend to intelligent department stores in 2014.

BBK's active layout and exploration of O2O mode is conducive to continuously improving the company's store and customer capabilities and management capabilities.

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< p > < strong > new opportunities. Market opportunities and challenges coexist < /strong > < /p >

< p > in the new round of < a href= "http://www.91se91.com/news/index_c.asp" > commercial real estate < /a > nuggets, a second tier city has become saturated, and the three or four line city has become a fierce battle for commercial real estate development enterprises.

More and more development enterprises are concerned about the three or four tier cities, because the commercial complex is still a virgin land, which has broader development space than a second tier city.

However, this does not mean that the occupation of the three or four line market can rest easy. This type of market has its own development characteristics, and copying the business mode of a second tier city is bound to affect its development.

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Most of the development enterprises of < p > three or four cities have strong ability of land acquisition and development, but lack of basic understanding of retail commercial real estate, and lack of strong financial strength, and lack of business investment and operation capabilities.

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< p > at present, the commercial market of the three or four tier cities in China is similar to that of the second tier cities five years ago, and the Midwest cities two or three years ago. It has the characteristics of "rapid growth of demand and relative shortage of supply", and those companies that take the lead in sinking land are short and rewarding.

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< p > at the same time, the department store format of the main store of commercial complex is also facing new adjustment.

In the second tier cities in China, the department store industry is being squeezed more and more.

Looking for the development opportunities of the three or four tier cities has become an inevitable choice for department stores.

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< p > although the county level cities are already the target of the department stores competing for layout, the department stores should make a clear orientation before making any effort, conduct adequate research on the three or four line cities, understand the local consumption habits, cultivate a good market base, and avoid the acclimatization.

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< p > after the three or four line cities are established, the department store industry can not be satisfied with the short-term high returns brought by the favorable market environment. To achieve sustainable development, we must upgrade the department stores in terms of management and service.

Therefore, only maintaining high quality can maintain market position and brand image.

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