Need And Pain For Chinese Overseas Retailing Transformation

　　 Industry pain

A few years ago, I interviewed a Chinese businessman who lived in South America for many years. He recalled the experience of doing business in Argentina in the 90s of last century. Because you don't need to talk, you can put a price tag on the rack. Over the past 20 years, the Chinese supermarket has penetrated into the daily life of Argentines. There are more than 1 households in the whole country, with annual sales of 6 billion US dollars. It occupies a very important position in the retail market of Argentina.

However, the glorious era of Chinese supermarkets that have won by volume seems to have passed. After 20 years of continuous growth, the expansion of Chinese supermarkets has finally shown signs of stagnation.

The head of a Chinese supermarket Association said: "at present, the Chinese supermarket has not yet reached the level of large-scale closure, but the opening speed of the new store has obviously slowed down. A few years ago, every month, the golden age of 20 to 30 Chinese supermarkets opened. Now more common is the renovation of old stores, and some of the supermarkets are selling food for sale. In addition, some Chinese businessmen shifted their positions and moved to other provinces.

　　 Hundred yuan store It is the main business mode of the Spanish business in China. Especially in the past few years, the Spanish shops have closed down or transferred because of the economic crisis, and a large number of Chinese businesses have gone to the bottom. The 100 yuan store has not only taken root in Spain but also has springing up everywhere, and the scale is bigger and bigger.

Under the impact of the financial crisis, the 100 yuan store was hit hard, and Chinese merchants fell into a mass confusion. Many Chinese businessmen have seen business go from bad to worse, so they want to expand their business scale and compete in the competition. The business of having a large store is temporarily better, but the consequence of such a big business is only big fish eating small fish, and there is no winner.

In March this year, the warehouse 100 yuan store will be stationed in Al Cara's news release, which triggered a lot of interest in Chinese department store business in Madrid. They also organized consultations with the government.

　　 Imminent

Chinese Wholesale and retail trade The reasons for the decline are manifold.

The first is the deterioration of the economic environment. Argentina's economic downturn in recent months has damaged the business of Chinese supermarkets with the middle class and the lower class as its main customers. Spain's unemployment rate will exceed 28% in 2014, and local consumers' consumption will become increasingly low.

Secondly, the low level development mode of Chinese businessmen was hit. Although Chinese supermarkets in Argentina have won by volume, they have been hit by supermarket chains in recent years. The "Carrefour Express" opened by Carrefour, the brand of the supermarket chain has risen quietly in the market since 3 years ago. Now there are more than 150 chain stores, and this year only 80 branches have been added. And the 100 yuan store in Spain is also hit by the warehouse style 100 yuan store mentioned above.

Another reason is that vicious competition and homogenization directly restrict the growth and development of Chinese wholesale and retail businesses. Moreover, these problems will also undermine the harmonious coexistence of Chinese businessmen with local governments and the public. This problem is very obvious in Russia. Russia's attack on Chinese businessmen stems from the "grey customs clearance" brought about by vicious competition.

　　 Transformation Pain

For Chinese businessmen, if the new marketing channel is not opened up, and the transformation of business mode is not timely, the living space will be smaller and smaller. If the government protects the local economy, Chinese businessmen will face more and more pressure. Many Chinese businessmen also realize that transformation is imminent, but successful transformation is not easy.

For the wholesaling Chinese businessmen, most of them are helpless in the face of business difficulties. The coping strategies they can think of are only limited to diverting the fixed cost, or moving the shops, or converting their warehouses to rents, making the two landlords, but these are temporary solutions. After all, the core of the business has not changed.

In addition, some powerful Chinese businessmen want to transform, but they are suffering from the shortage of talent as a stumbling block in the process of development. This is why some Chinese wholesalers and retailers are sticking to traditional industries. Many parents of Chinese businessmen have realized the power of knowledge, and their ideas have made great progress in the education of their children. But the problem is that distant water can not solve their thirst.

Some analysts argue that since the Chinese wholesale and retail industry is unwilling to change the industry, the development stage of branding is essential. At present, Chinese businessmen have begun to pay attention to product quality, marketing strategy, brand effect, truly realize the "three legality" of personnel, goods and business, and the way of business from "big market" to "big market". Some Chinese businessmen began to look for talents from overseas students and prepare for transformation and upgrading.