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    Regional Retailers Should Be Focused On The Development Of Physical Stores.

    2014/5/24 10:42:00 45

    Regional RetailersMergers And AcquisitionsPhysical Stores

    Compared with the national chain retail enterprises, the advantages of regional retail chain enterprises are more obvious in terms of speed and efficiency than P. < /p >
    < p > Chu Xiuqi, President of China general merchandise business association: superior commercial location, regional centralized shop scale, convenient logistics and distribution environment, low operating cost and supplier support. Regional department stores not only stabilize regional competitiveness, but also have regional monopoly. < /p >
    In the past two years, the real retail business in P has been very sad. WAL-MART, Carrefour and other foreign retail giants have slowed down their opening plans in the Chinese market, and some local excellent national chain retailers have also declined and slowed down their pace of expansion. However, the local retail enterprises are expanding in the way of merger and consolidation. < /p >
    < p > recently, BBK commercial chain Limited by Share Ltd announced that the company will acquire 100% of Limited by Share Ltd shares in Nancheng department store in Guangxi. This news makes the retail industry in the "dry season" still a lot of splash. Prior to that, Yonghui supermarket once again increased its holdings of Zhong Bai group and became the third largest shareholder of China 100 group. < /p >
    < p > it is worth noting that the two leading players in recent mergers and acquisitions in retail industry are local regional retailers. Whether the M & a side or the acquirer, whether it is a shareholder or a stakes, it is a regional retailer and a large and influential regional retailer. < /p >
    < p > no matter which era or industry, mergers and acquisitions will not be lacking. The merger and acquisition integration of retail industry has been going on, but the protagonists of each stage are different. Today, regional retailers have become the leading role. What does the merger and acquisition integration of regional retailers indicate? < /p >
    < p > < strong > regional retail is the main trend of mergers and acquisitions. < /strong > < /p >
    < p > in fact, in the past two years, the industry has always heard that retail is ushering in mergers and acquisitions. Especially last year, mergers and acquisitions events were endless, so last year was also seen as an acceleration year for mergers and acquisitions. In last year's mergers and acquisitions in retail industry, the biggest highlight is the acquisition of foreign retail by local retail. Whether Huarun Wanjia and Tesco purchase a joint venture in accordance with the "82 share" stock, or the 2 billion purchase of Wangfujing Department Store Group's 96.72% stake in China Spring Department store, these cases can clearly show that local retail enterprises and foreign retail enterprises have taken offensive and defensive spanlocation in the overall M & a situation. < /p >
    < p > after the merger and consolidation period in 2013, the industry predicts that the merger and acquisition boom will continue in 2014. The China Federation of Commerce has predicted that the regional retail market will accelerate in 2014, and the mode of M & A will be more active. < /p >
    < p > BBK's acquisition of Nancheng department store and the case of Yonghui becoming the third largest shareholder of China 100 group can prove that the above prediction is correct. Of course, this is only the beginning. Next, there will be more cross regional mergers and acquisitions among retailers in the retail industry. < /p >
    There are also a lot of facts supporting the trend and current situation in P market. First of all, in the current business environment of low consumption, the days of physical retailers are rather difficult, and at this time there will be obvious differences. In order to resist the cold winter in the retail industry, we should find a way to spanform, or combine strong forces with strong or weak integration. In any case, we need to optimize the allocation of resources and provide the most powerful support for the development of all parties. < /p >
    < p > secondly, the local regional retailers have developed and become stronger. To expand, it is necessary to expand outwards. Nowadays, regional retail enterprises have gone through the era of local mergers and acquisitions. Large regional retailers have already formed. Next, the expansion of span regional has become the way for large regional retailers. < /p >
    < p > outward expansion is no more than two ways, one is to build its own outlets, the other two is to choose mergers and acquisitions to integrate existing local retail resources. As we all know, in the past few years, the domestic consumption boom, the retail industry has been developing rapidly, at that time, both the national chain retail enterprises and regional chain retail enterprises have been "running horses", and the quality commercial resources of the second tier cities have been almost carved up. At this point, it is very difficult for regional retailers to build their own outlets. In addition, the consumption of the three or four tier cities has increased rapidly, but compared with the big cities, the consumption concept is relatively conservative and the consumption level is also different. Online shopping is more popular than the second tier cities. Therefore, it is becoming more and more difficult to choose new shops. Under these realities and difficulties, M & A expansion is the only way to enable retail enterprises to achieve their expansion goals. < /p >
    < p > moreover, at present, the market concentration of regional retail is relatively low, and there is great room for M & A. According to data from China Chain Store Association, the largest Chinese retailer Suning is only 1/16 of WAL-MART. In 2013, China's chain top 100 sales accounted for only 8.9% of the total retail sales of social consumer goods, and this proportion continued to decline in recent years. Compared with the national chain retailers, the scale of regional retail enterprises is limited, and this is also a good time to expand regional retail expansion. Whoever can take the lead in becoming stronger and bigger will take the lead in the market. < /p >
    < p > < strong > regional retail strong support < a href= "http://www.91se91.com/news/index_c.asp" > retail trade < /a > /strong > /p >
    The merger and consolidation events of retail trade in different periods (P) show different industries and present different meanings. < /p >
    In the past few years, < a href= "http://www.91se91.com/news/index_c.asp" > foreign capital < /a > retail sales can be regarded as the best domestic retailer. They are expanding rapidly in the domestic market and constantly merging and integrating the domestic retail enterprises in P. At that time, almost all of the retail businesses were surrounded by foreign retail giants such as WAL-MART and Carrefour, and their development direction also led to the trend of the whole industry. In the past two years, this trend has changed. Foreign retail is no longer the leading part of the leading retail industry. A number of local excellent retail enterprises have grown rapidly and begun to merge and integrate foreign-funded retail enterprises. In continuous learning and development, local retail sales began to support the sky of the retail industry. < /p >
    < p > nowadays, large regional retail enterprises have become the protagonists in the merger and integration tide. Without doubt, this is the era of regional retail enterprises, and the value of regional retailers is manifesting. < /p >
    < p > according to the statistics of journalists, in the 2013 annual list of top 100 enterprises released by China Chain Association, a total of 47 enterprises have a sales growth rate of over 10%, of which 36 belong to regional chain enterprises. Among them, Beijing Hua Guan Business Management Co., Ltd. sales growth rate reached 51.1%, ranking first place. < /p >
    < p > in department stores, regional department stores operate better than national chain enterprises. In the top 10 list, Chongqing department stores, Ginza shares, Changchun Eurasia Group, Yantai Zhenhua Department store sales growth rate is above 10%. By contrast, the growth rate of Shanghai friendship group and DQ shares of department stores slowed down by 6.7% and 6.1% respectively. < /p >
    < p > in addition, among the top 100 top 100 chain stores released by China Chain Store Association in 2013, 32 of the top 50 were regional supermarkets, and enterprises with a growth rate of more than 20% were almost swept away by regional supermarkets. < /p >
    P > P > from the semi annual report of the Chinese Retail Listed Companies in 2013, the profit growth of half of the supermarket has declined, but the profit growth of regional chain retail enterprises such as BBK, retail, material beauty and Yonghui supermarket has shown good performance, of which the net profit of BBK has increased by 21.28%, and the profit of Yonghui supermarket is increased by 102.37%. < /p >
    < p > through the above data, we can see that compared to the national chain retail enterprises, the advantage of regional retail chain enterprises in the development speed and efficiency is more obvious. < /p >
    Less than P, the industry also said that compared with the national department store chain stores, regional department stores have stronger ability to grasp the trend of consumption, and are more conducive to intensive cultivation of commodities and management. Retail industry is an obvious industry with localized characteristics. The regional chain retail companies has no advantage in localization because of its locality. < /p >
    < p > Chu Xiuqi, President of the Chinese general merchandise business association, seems to have a superior commercial location, a regional centralized shop scale, a convenient logistics distribution environment, a lower operating cost and supplier support. < /p >
    < p > of course, there are also some regional retail enterprises whose performance is not good, such as the Guangxi Nancheng department store and the Zhong Bai group. It is understood that the performance of Guangxi Nancheng department store in 2013 dropped by 20% compared to the same period last year, and the performance of China 100 group fell 16.7% year-on-year. Despite the poor performance, a merger and a large share holding, it is undeniable that they still have their own advantages, which is also the way they attract mergers and acquisitions and investors. < /p >
    < p > it is understood that Nancheng department store is a retail giant in Guangxi, and has opened 40 chain stores in major cities such as Nanning, Liuzhou, Guilin and Yunnan Kunming in Guangxi. These branches and the market base of many years are incomparable to any foreign enterprise. Through the acquisition and distribution of Nancheng department store, BBK can quickly enter the Guangxi market, and can also make use of the supply chain system of Nancheng department store to continue to play its localization advantage. < /p >
    < p > < strong > we should pay attention to the development of the entity store < /strong > < /p >.
    < p > with the continuous integration of acquisitions and acquisitions, the scale of large regional retail enterprises will be bigger and bigger, and perhaps it will also develop into a national chain enterprise. After all, expansion is a necessary way for an enterprise to become stronger. Many national chain retailers also spread across the entire domestic market through cross regional mergers and acquisitions from one region. < /p >
    Huarun P, a local retailer in Shenzhen, has grown into a leading national retail enterprise. Its growth history is inseparable from mergers and acquisitions. It has acquired Jiangsu Suguo supermarket, Tianjin Yue Tan group, Ningbo kekelong supermarket, Tianjin Home World supermarket, Xi'an love chain supermarket, Wuxi Yongan supermarket, Jiangxi Hong Kelong supermarket, etc., and has been stationed in various markets across the country through continuous regional a href= "http://www.91se91.com/news/index_c.asp" > merger and acquisition < /a >, thus becoming a national chain retail enterprise. < /p >
    < p > Hunan local retail BBK group is also expanding the business scope of enterprises through mergers and acquisitions. The acquisition of Guangxi Nancheng general merchandise is to enter the southwest market; Yonghui supermarket holdings Zhong Bai group also needs to take the opportunity to enter the Hubei market. The expansion of large regional retail enterprises take the surrounding neighboring market as a breakthrough, so that enterprises in a certain area of < a href= "http://www.91se91.com/news/index_c.asp" > market < /a > concentration degree is higher, so the steady expansion is also conducive to brand building. < /p >
    < p > but in this process, regional retail enterprises must actively adapt to the market changes, change the past single business mode and seek spanformation, otherwise it is hard to say that it will become the passive side in the merger and acquisition boom. < /p >
    < p > > a href= "http://www.91se91.com/news/index_c.asp" > regional retailers < /a > also can not escape the influence of e-commerce. Therefore, many regional retailers have begun to actively test the retail channel on the waterline to spanform to full channel retailers. In 2013, 67 of the top 100 chain enterprises in China started online businesses. < /p >
    < p > developing online business and exploring o2o mode are all changes made by regional retailers. However, insiders believe that e-commerce is not the main direction of the development of regional retailers. The focus of regional retailers is still in physical retail. < /p >
    < p > Pei Liang, Secretary General of the China Chain Store Association, also said that in recent years, the Chinese chain store association has not appealed to most of the enterprises to make electricity providers, but to work hard on the efficiency and efficiency of the business operation, including the ability of commodity management. There are many reasons for the impact of the electricity supplier on the traditional retail industry, including the profit seeking of the capital. However, the core of the development of traditional retail enterprises lies in the supply chain. If the physical retail enterprises can have good efficiency in the supply chain, such as the creation of special products, customer service and experience, they will not lose electricity to the electricity supplier in the competition. < /p >
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