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    China'S Retail Enterprises' Net Profit Is Facing "Negative Growth".

    2014/5/5 20:27:00 33

    ChinaRetail IndustryNegative Growth

    < p > as we all know, the retail industry has been very difficult in the past year, and the pace of development of the retail industry is also declining sharply during the national economic slowdown.

    Data show that in the first quarter of this year, gross domestic product (GDP) GDP increased by 7.4%, down 0.3 percentage points from the same period last year.

    Meanwhile, in the first quarter, the growth rate of retail sales of 100 major large retail enterprises in China was the lowest in the past eight years.

    < /p >


    < p > < strong > industry: facing the "minimum growth rate" < /strong > /p >


    The latest information released by the p China National Business Information Center shows that the total retail sales of consumer goods in 2013 reached 23 trillion and 781 billion yuan, up 13.1% from the nominal growth rate. The growth rate slowed down 1.2 percentage points over the previous year, declining for third consecutive years, the slowest growth since 2004.

    < /p >


    In terms of P, clothing, cosmetics and foodstuffs are also falling sharply.

    Cosmetic retail sales grew at their lowest level since 2008.

    < /p >


    < p > according to the data released by the National Bureau of statistics, the growth rate of clothing retail sales of Enterprises above Designated Size in 2013 showed a slowing trend for the three consecutive year, the lowest since 2003.

    In 2013, the growth of clothing retail sales of major large retail enterprises in China dropped by 7.3 percentage points over the previous year, and the slowdown in sales growth was obvious. In 2013, the growth rate of cosmetics retail sales in China above designated size was the lowest level since 2008.

    In 2013, the growth rate of retail sales of cosmetics in key large retail enterprises was also the lowest level since 2008. In 2013, the growth rate of retail sales of large retail enterprises in China was the lowest in nearly five years.

    < /p >


    < p > in addition, the statistics of China's chain operation association's "2013 industry development survey" showed that in 2013, the sales volume of the top 100 chain enterprises reached 2 trillion and 40 billion yuan, up 9.9% over the same period last year, and the number of new stores was more than 6600, with the total number reaching 95 thousand, an increase of 7.6% over the same period last year.

    Sales growth was 0.9% lower than in 2012, the lowest sales growth since statistics.

    < /p >


    < p > 2013 is very difficult for the retail industry, but the situation in 2014 is not optimistic.

    Data from the China National Business Information Center show that in the first quarter of this year, the number of retail sales of major retail enterprises nationwide increased by 1.4%, representing a 6.2 percentage point decline over the same period last year, showing a third year slowdown, the lowest growth rate since 2005.

    Among them, the growth rate in March was 1.3% over the same period last year, and the growth rate dropped by 8.6 percentage points over the same period last year.

    < /p >


    Less than P, the growth rate of retail sales of grain, oil and foodstuffs slowed by 3.6 percentage points compared with the same period last year. The growth rate of clothing retail sales slowed by 6.4 percentage points over the same period last year.

    Among them, the year-on-year growth rate was 3.9% in March, a 6.8 percentage point slower than the same period last year, and the growth rate of gold and silver jewelry retail sales slowed by 19.2 percentage points over the same period last year.

    Among them, the growth rate of retail sales in March slowed down more than in the first quarter, and the growth rate of household appliances retail sales slowed by 0.4 percentage points over the same period last year.

    Among them, the growth rate of retail sales in March was 0.9 percentage points higher than that in the same period last year. The growth rate of cosmetics and daily necessities slowed by 10.5 and 4.4 percentage points respectively over the same period last year.

    Among them, the growth rate in March decreased by 16.2 and 4.2 percentage points respectively over the same period last year.

    < /p >


    < p > this shows that the domestic consumer market situation is still weak in 2014, and domestic retail enterprises are under great pressure.

    < /p >


    < p > < strong > Enterprise: enter < < a href= > http://www.91se91.com/news/index_c.asp > minus growth > /a > < /strong > /p >


    According to the data released by China Chain Store Association (P), the number of enterprises with negative growth in the top 100 chain enterprises in 2013 increased significantly, reaching 15, the most in the past years.

    In the data, the reporters found that most of the chain businesses with negative growth in sales were traditional retail businesses, including agricultural and commercial supermarkets, Huizhou Merchants Group, Lotte Mart, people's happiness, Sanjiang shopping, Guangzhou friendship group and Bajia supermarket.

    < /p >


    < p > retail enterprises are having a bad time. We can see this from the annual reports of listed companies.

    According to the reporter, in 2013, many large retail enterprises in the listed commercial enterprises appeared to have a slowdown or even a negative growth in their sales and profits.

    < /p >


    < p > 2013, the sales volume of Parkson company was 17 billion 481 million yuan, up only 4.3% compared to the same period last year, and net profit dropped by 58.4% to 354 million yuan. The annual report of Ginza stock 2013 shows that in 2013, the company achieved 14 billion 218 million yuan of business income, an increase of 5.04% over the same period last year, and the net profit attributable to shareholders of listed companies was 266 million yuan, down 23.1% from the same period last year.

    Enterprises with negative growth in net profit also have friendly groups, Xinhua Department stores, Wuhan merchants, Guangzhou friendship, Nanjing new hundred, Nanning new hundred and so on.

    < /p >


    < p > also worth mentioning is that there were many retail enterprises that suffered losses in 2013.

    In 2013, the mainland lost 158 million 300 thousand Hong Kong dollars, 126 million 770 thousand yuan, 219 million yuan for commercial city, 97 million yuan for lotus bee, and 230 million yuan for Xinhua.

    < /p >


    < p > except for traditional retailers, the performance of some professional chain enterprises has also declined sharply.

    Metersbonwe achieved sales revenue of 7 billion 890 million yuan in the year 2013, down 17% from the same period last year. The net profit attributable to shareholders of listed companies was 405 million yuan, down 52.2% from the same period last year, EPS was 0.40 yuan.

    < /p >


    < p > from the Quarterly Bulletin published by Commercial Listed Companies in 2014, we can see that enterprises with a net profit decline in 2013 are also hard to change the fate of "decline" in the first quarter of 2014.

    Wuhan's business revenue in the first quarter of this year was 1 billion 218 million yuan, an increase of 1.63% compared with the same period last year, while net profit was 20 million 137 thousand and 800 yuan, down 28.78% compared with the same period last year.

    Nanning department store realized operating income of 685 million yuan in the first quarter of 2014, down 10.5% compared with the same period last year. Net profit attributable to shareholders of listed companies was 1 million 124 thousand and 200 yuan, down 88.19% compared to the same period last year.

    < /p >


    In the first quarter of this year, some enterprises in the first quarter of 2013 did not escape the trend of "P".

    In the first quarter of 2014, Wangfujing achieved operating income of 5 billion 240 million yuan, down 4.97% from the same period last year, with a total profit of 311 million yuan, an increase of 2.02% over the same period last year, a net profit of 223 million yuan, an increase of 0.45% over the same period last year, and a net profit of 184 million yuan, down 11.3% from the same period last year.

    Beijing urban and rural areas in January 2014 -3 operating income of 724 million yuan, down 6.89% compared to the same period, net profit of 31 million 398 thousand and 400 yuan, down 4.48% compared to the same period.

    < /p >


    < p > < strong > predicament: < a href= > http://www.91se91.com/news/index_c.asp > cost > /a > excessive growth < /strong > /p >


    < p > the retail industry has been at a difficult stage today. Besides its impact on the international and domestic economic situation, it also has its own development dilemma.

    < /p >


    Last year, the retail industry ushered in a closed shop tide, which was closed due to the expiration of the contract, because of the strategic adjustment of the business. But in fact, the reason behind it was that it was unable to bear the pressure of cost and had to opt out of the market in the face of profit. < /p > p


    < p > China's Chain Store Association survey shows that in 2013, the rent expenditure of chain top 100 enterprises increased by 11%, and labor cost increased by 18%, which was similar to that of 2012.

    The two cost growth is significantly higher than the sales growth of enterprises.

    < /p >


    < p > "high cost is the key to making the profit of retail business more and more difficult.

    In 2013, the rise in the cost of retail industry appeared from the slow to the urgent and the rigid proportion increasing. If a certain critical point is reached, it will have fatal effects.

    Guo Geping, President of China Chain Store Association, said that in the first half of 2013, a number of retail listed companies reported that over 80% of the sales and administrative expenses of enterprises rose, while the growth of retail enterprises was slower than the cost increase.

    < /p >


    < p > the words of cost increase will often be seen in the annual reports of commercial listed companies.

    Metersbonwe's annual report 2013 pointed out that the company's expenditure in the industry downturn has been reduced, but due to a slight decline in revenue, the cost rate has increased, the sales cost rate has increased by 2.3 percentage points to 31.4%, and the management fee rate has increased by 0.5 percentage points to 3.3%.

    < /p >


    < p > rising costs forced businesses to slow down.

    Data show that among the top 100 enterprises, the total number of shops in 21 enterprises has a negative growth.

    In 2013, the number of stores in chain top 100 enterprises dropped by 0.4%.

    < /p >


    "P" in March last year, foreign retail WAL-MART took the lead in putting on the store tide.

    It has closed two stores in Chongqing south bank, Jiangsu Yancheng store, Hunan Changde store and Ma'anshan.

    In the convenience store format, Rosen first closed about 30 stores. After that, he could start adjusting and closing dozens of stores with good.

    Department stores are also hard to escape.

    In March 2013, the famous department store heavyweights in Fangzhuang closed their stores in the middle of the year. In the middle of the year, the Shijiazhuang store of oceanic department was closed, and ishigan, which had been operating in Shenyang for 5 years, shut down; subsequently, the Chengdu Pacific department store was closed, and Parkson was also unable to escape the fate of closing the shop. It closed the Baisheng Guiyang fresh flower shop first, and at the end of August, a store in Baisheng Shijiazhuang also closed.

    < /p >


    < p > an industry or an enterprise will take a downward trend, and it will be affected by the great economic situation, but it is more of a problem of its own.

    < /p >


    < p > as we all know, the profitability of the retail industry is also difficult. It is also related to its aging and lack of innovation mode.

    Due to the crazy expansion of the whole industry and the overdraft of market resources, coupled with the lack of marketing innovation mode, the retailing industry is becoming more and more tired.

    In the period of meager profits, the industry giants and large retailers are competing. If the retail industry is not featured, it is difficult to get the recognition of consumers.

    Nowadays, the society is developing and the consumer market is changing. Retailers must keep pace with the times and forge ahead.

    < /p >


    < p > strong > breakthrough: promote path selection < /strong > < /p >


    < p > "to adapt to the situation and adapt to the requirements, we should take a larger step in the pformation and upgrading of retail industry and the development of innovation."

    Recently, Wang Desheng, deputy director of the Department of circulation development of the Ministry of Commerce of China, gave the answer to the path selection of the retail industry on the "2014 China Xiamen circulation economy and urban development forum", which was jointly sponsored by the China Federation of Commerce and the China business press.

    < /p >


    < p > first, < a href= "http://www.91se91.com/news/index_c.asp" > technological innovation < /a > is an important support for upgrading the development level of retail industry.

    Wang Desheng believes that we say that the commerce and circulation industry, including retail trade, has gradually become a technology intensive industry highly integrated with automation technology, information technology and standardized technology. It is because in recent years, advanced facilities and technologies such as computers, escalators, central air conditioners, cold chain, electronic trading payment systems, anti-theft systems, commodity anti-counterfeiting, preservation and warehousing, logistics and distribution centers have been widely applied in the circulation field.

    < /p >


    < p > nowadays, the rapid development of information technology and e-commerce is causing revolutionary changes in the circulation field, bringing about profound changes in consumption concepts and consumption patterns. This is no longer a trend but a real reality.

    To meet the requirements of the situation, only by accelerating the innovation of technology application and management mode can the retail enterprises get closer to consumers and adapt to the trend of consumption. This is the magic weapon to win the initiative and succeed in fierce competition.

    < /p >


    < p > secondly, the combination of entity and network is a new growth point of retail industry.

    In recent years, the rapid development of network pactions, the scope of marketing of goods and services has gradually expanded, and the number of enterprises and individuals involved in the paction has increased rapidly.

    According to relevant data, China's online retail sales volume exceeded 1 trillion and 850 billion yuan in 2013. It has become the largest online trading market in the world. Online trading has broken the limitation of time and space, bringing new changes to circulation channels, circulation links and circulation radius. Consumers are no longer simply choosing commodities, but also choose modern, fast and fashionable lifestyles at the same time.

    < /p >


    < p > it should be said that physical stores and network sales have their own advantages. For the physical store, the biggest advantage lies in satisfying consumers' actual experience and enjoying service needs.

    How to achieve integration and development, and have two advantages and create new advantages, should become a strategic choice for many circulation enterprises.

    The entity business should expand its network business by means of professional platform, self built website and merger and reorganization.

    Network sales enterprises should improve the simulation experience, logistics distribution, electronic payment and other supporting services, especially with the help of the existing chain enterprise outlets to enhance the convenience of distribution services.

    < /p >


    < p > furthermore, < a href= "http://www.91se91.com/news/index_c.asp" > logistics distribution < /a > is the key link to improve circulation efficiency.

    A perfect logistics distribution system is the key to improve efficiency and reduce costs for both retail enterprises and the whole industry.

    Wang Desheng believes that in recent years, China's trade and logistics development and innovation accelerated pace, but the overall level has yet to be upgraded, specialization, standardization, information level is not high enough, affecting the efficiency of circulation.

    Large chain enterprises should strengthen the capacity building of logistics and distribution, and realize the synchronous development with chain outlets, so that the logistics synergy and network advantages under E-commerce will be further highlighted.

    Small and medium-sized enterprises should develop joint distribution and effectively reduce operating costs.

    < /p >


    Besides, P is also a strategic choice to strengthen the circulation function.

    Nowadays, the fierce market competition is not only the competition between enterprises and enterprises, but also the competition among supply chains, the competition among business circles, and the competition among different bodies.

    Retail enterprises should strengthen the concept of integration and development, break the restrictions of links, regions and enterprises, take market demand as the guidance, actively build stable and diversified supply chain management system, and then evolve into a collaborative development service chain, value chain and industrial chain.

    In the supply chain construction, we must strive to create a harmonious relationship between suppliers and suppliers.

    < /p >


    < p > "there is competition between zero supply, but more cooperation and community of interests. We must enhance cooperation, enhance supply chain management level and value added capability, and jointly expand a new world of harmonious development."

    Wang Desheng said.

    < /p >

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