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China Merchants Are Accused Of "Ruthless" Suppliers

2014/7/22 13:12:00 23

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2011, five ministries and commissions, including the Ministry of Commerce, the NDRC, the Ministry of public security, the General Administration of Taxation and the General Administration of industry and commerce, issued a "clean up and rectification work plan for large retail enterprises to suppliers".

however, many suppliers have reflected that although some stores have cancelled some fees, they have only reduced the number of fees and charges. For the existing fees, the fees will be increased, or the other new fees will be increased. The total amount of suppliers' fees will not be significantly reduced.

"whether it is international brand or local brand, in Chinese market, the common point of super business is charging.

The outside world is called "entry fee". In fact, there are too many patterns, such as barcode fee, festival fee, shop Festival fee, new shop opening fee, opening account fee, stack fee and so on.

For example, the stack charge is where your goods are put and how they are displayed. If you happen to encounter holidays, a product needs promotion, then you must put it in a form of a spectacular Festival, including the daily display of the shelf position. It depends on the extent of our suppliers' money. Do not belittle these details. Placing a good shelf location and bad location has a great impact on sales, at least 10%~20%.

Zhang Ming said frankly.

bar code fee is more exquisite. Many suppliers reflect that each commodity corresponds to a unique bar code. If a commodity wants to enter all brand supermarket stores, the bar code charge is 300 thousand ~35 yuan.

In some areas, barcode fees are paid at once, and retailers in some areas have to collect them several times.

Zhang Ming said his company spent about tens of millions of dollars a year to pay for all the bar code fees.

as for festival expenses, different enterprises have different practices.

The supplier and the retailer sign a purchase and sale contract, usually one year, and the contract will specify the details of the cooperation between the two parties, including the deduction points.

According to the industry, some contracts will list some fees in the name of "suitable". Some contracts do not have any "hard to get up" projects, but there will be a special "Interim Agreement" in the industry. Once the festival time comes, such temporary agreements will suddenly appear. Suppliers must pay the Festival fee, otherwise they will be kicked out of the store, put on the corner shelves or remove from the DM promotion list.

reporter found in the interview that all the retailers in China's market charge are "artificial" operations, and in the overseas markets such as Europe and the United States, the above kinds of subdivision management are all operated by the computer system, which is simply "artificial".

Ding Haozhou, executive director and President of Shanghai Zhong FA commercial management group, has worked in retail trade in China and Europe and America, and is well versed in the rules of P.

"In the retail market of the United States and Canada, almost all the super businessmen purchase, display, promote and so on are distributed by the computer system. For example, the display of goods is not placed artificially, but after the computer monitors the sales situation of the goods, the analysis chart is made, and according to the data analysis, the location of the commodity is planned by the computer system, so there will be no overhead and display fees at all."

Ding Haozhou also pointed out a hidden rule -- the right to order.

In the overseas market, the headquarters has a high degree of centralization. However, in the Chinese market, whether it is foreign brands or local brands, although there are unified management, many subdivision powers are placed in branches or stores, such as order rights. Even in the Chinese market, even if headquarters purchase a product in a unified way, however, because the order right is in the hands of the head of the store, if the stores do not order, then the supplier will still be "useless", so the supplier must pay all kinds of expenses for the store to enter.

"in Europe and the United States, all orders are automatically carried out by the system, for example, if a product is unsalable, then the purchase will be reduced if the computer is calculated. If the hot commodities are sold, the computer will automatically place more orders. These are all pparent and intelligent, and managers can not change themselves. Therefore, the number of commodities entering or ordering will depend on the sales situation of the products themselves, rather than on the entry fee."

Ding Haozhou said.

reporters also learned from many people working in Europe for a long time that overseas distribution systems are also controlled by computers, so it is impossible to collect distribution fees like the domestic market.

In short, many management in overseas markets is not related to people. Under the control of computer system, there is no entry fee.

However, due to the differences of management system, supplier relationship and enterprise system in Chinese market, even foreign brands in China have to "do in Rome as the Romans do". For example, different agents in different regions purchasing a brand of goods in China are different. This depends on "people" rather than machine ordering.

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Walking on the streets and alleys of Japan, you can see that the prices of similar goods are exactly the same, and the price uniformity of commodities is very high. P

"P >" the Japanese market has strict standards for selling price and < a href= "http:// www.91se91.com/news/index_c.asp" > promotion > /a > and business can also be subdivided according to different formats and operating hours, and each of them can do their own market segmentation so that they will not be vicious competition.

However, the price of Chinese retailers, especially supermarket stores, is the price, so the vicious price war is common. The gross profit margin of retailers is very low. In the past few years, the net profit of some stores may be less than 5%, which makes it difficult for retailers to profit from the selling price difference, so the industry will rely more on all kinds of fees to make money.

Mr. Shen told reporters in a large state-owned retail group for years of management.

he has inspected many overseas retail projects, and has standardized and unified disposal of the selling price in overseas markets. It is not very different from the selling price of a commodity, and all businesses can get different prices because of different channels and their market share, because the stronger the retailer gets the lower price, but the selling price to the consumers is basically the same, and the retailers earn the selling price according to their respective abilities.

then, can retailers in China not be able to profit from the difference in sales? The answer given by many businessmen is: hard!

"P," Mr. Shen said, in addition to the above price war to lower sales, all kinds of cost increases have also lowered the profits of retailers, which has prompted businessmen to increase their performance in the form of "grey mode".

"another key point is the credit system. For example, in overseas markets, the price is a trade secret, and each may be different. This depends on their negotiation ability. Once the contract is signed, a confidential contract will be attached, so long as the secret contract is signed, it will be kept secret.

But in the Chinese market, there is almost no secret. Even if confidentiality is said, the price of each business will soon be known to the opponent, so the opponent will make this difficult supplier, ask for the same price, the same price plus the price war, it is very difficult for all businesses to make money by selling the difference.

So the profits of the businesses will be matched, who will charge more.

Mr. Shen said helplessly.

let suppliers headache, in addition to charges, there is also a major problem is the arrears of payments, in the industry, in addition to a large number of retailers, such as big RFD in the payment of good reputation, a large number of peers are suppliers "Tucao" has the experience of arrears of payment.

"generally speaking, the payment of goods is about 1~3 months after the sale of goods, which is called the account period. However, retailers are hoarding more money, and even excessive operators will store large amounts of money to start new stores, causing retailers to repeatedly default on suppliers' loans, but because suppliers are at a disadvantage, even if they are in arrears, they can only suffer from their own debts.

Many of our small and medium-sized suppliers do not have enough capital. If they are delayed for more than half a year, then our capital turnover will be a problem.

Zhang Ming said he was rather distressed about delinquent payments.

In the overseas market, P is different.

Ding Haozhou said that the settlement of goods and loans in many markets in Europe and America is carried out through the bank credit system, such as the operation of accounts receivable discounting. Under such a mode, once retailers default on payment, they will affect their credibility in the banking system, so there is no seller to dare to joke with their credit and brand image.

"P >" in addition, the legal system in Europe and the United States is relatively sound and strict, the management of "grey income" is very strict, the tax system is perfect, and arbitrary charges can not operate at all. Once it is discovered, the departments concerned are extremely fined for the industry, or even to the point where they are bankrupt.

In contrast, China's relevant laws and regulations are not so strict, and arbitrary charges are repeated.

Ding Haozhou analysis.