TESCO "Decent" Withdrawal From China Or Missed Opportunities For Rapid Development

< p > in many people's eyes, the so-called joint venture is just a beautiful name.

After all, the purchase of Chinese business and cash into the joint-venture of the joint venture has almost nothing except the symbolic rights of the 20% stake.

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< p > summed up, < a href= "http:// www.91se91.com/news/index_c.asp" > TESCO < /a > the trajectory of 10 years in China: 10 years ago, TESCO entered China by buying Tesco as a starting point; 10 years later, TESCO was bought out in disguised form of Tesco.

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< p > < strong > lost the initiative < /strong > /p >

Compared with WAL-MART and Carrefour, the world's third largest retail enterprise TESCO entered China in a relatively late period. It can be said that the a href= "http:// www.91se91.com/news/index_c.asp" > the first opportunity < /a > can be missed. P.

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< p > with WAL-MART, < a href= "http:// www.91se91.com/news/index_c.asp" > Carrefour < /a >, all of them first opened their own stores to see and open the Chinese market. Following the maturity of China's operation, the expansion path of purchasing stores was different. In 2004, TESCO opened the door of the Chinese market by adopting a high premium of 30~40 times to acquire Taiwanese capital's top international group's Tesco supermarket store.

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< p > Hu Chuncai, general manager of Shangyi consulting in Shanghai, believes that TESCO has not accumulated and "stride" through its own mode in China's retail market. It is a direct step by step merger. Although it is simple and fast, it lacks the understanding of the Chinese market, lacks the cultivation and preparation of the core management team, and makes the development lack of foundation, which has laid a hidden danger for the conflict and failure of the later operation integration.

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P, the largest retailer in the UK, has made ambitious plans to increase its stores in China and develop commercial real estate and online businesses in TESCO.

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< p > but contrary to expectations, TESCO's life in China has never been bitter. It is hard to see the dawn of profit.

Shen Jianguo, founder of Tesco, told the media that TESCO China had sales of 18 billion yuan in 2012 and 121 stores.

Apart from the two, its single store sales are less than 150 million yuan.

According to the industry average, a twenty thousand square meter hypermarket has annual sales volume of 250 million yuan to achieve breakeven.

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< p > TESCO set up a separate commercial real estate department in 2009, opening up a shopping plaza with "Ledu Hui" as its brand outside the hypermarket business, hoping to help improve the retail performance with commercial real estate. However, the dozen shopping centers located in the three or four tier cities are depressed by the camp.

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From 2011 to 2012, after a series of two chief executive officers were removed from China, TESCO cut off the real estate sector, merged commercial real estate business into retail business, and reduced the billions of investment plans previously proposed. P

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Tang Yaohua, chairman of WOWO, who has worked in the TESCO estate department and Express convenience store, has revealed that the conservative British culture has made p erroneous understanding of China's retail market.

"TESCO has no solid experience and team roots in China, but tries to control risk by using complex development approval process. Repeated static project argumentation, ignoring the development characteristics of China's retail market, consumes development momentum and potential energy, and allows a lot of quality projects to be handed over to each other."

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< p > since 2011, China's business environment has changed dramatically.

The report released by China chain operation association shows that in 2011, the labor cost of chain retailers increased by 26%, while rents cost increased by 10%, while sales growth slowed down at the same time.

Against this background, TESCO China is in a more difficult position.

A TESCO China executive, who declined to be named, revealed that since the second half of 2011, TESCO China has entered the most difficult period, and its deficit has continued to expand.

TESCO China has been forced to open shop downsizing mode.

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< p > it is understood that TESCO China has closed 4 stores in the second half of 2012, layoffs of nearly 1000 people, and its loss in 2012 has been as high as 2 billion 400 million yuan.

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< p > < strong > phase exit > /strong > /p >

In the first half of 2013, the loss was not alleviated. TESCO had to continue to close its stores in China in the first half of the year P.

Then in May 2013, the market came out that TESCO would sell the business in China.

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< p > because of the overall recession of the industry, it is not easy for TESCO to plan the sale as a whole. Therefore, the way to establish a joint venture with Huarun Wanjia can be said to be a compromise.

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< p > it is worth mentioning that in the new joint venture, although TESCO has injected Chinese business and cash, its shares in the new company hold only 20%.

"It is a joint venture, but 20% stake does not have any right to speak. It can be said that this is an excuse for Tesco to exit the Chinese market gracefully.

It can also be seen as TESCO has made an account of its global investors in China for so many years: we still attach great importance to the Chinese market and do not want to withdraw from the world's largest market.

Expert analysis.

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< p > at the same time, Huarun Wanjia CEO hung Jie made a statement. The 135 TESCO stores in the mainland will be renamed Huarun 10000 in the future to achieve brand expansion.

This means that brand reputation, reputation and worldwide influence are no less than Huarun's TESCO, and will retreat in China.

Its Tesco brand, which has been struggling for 10 years in China, will disappear completely from the consumer's perspective.

At present, Huarun still maintains its brand name for Suguo supermarket and Pacific Coffee in many retail acquisitions.

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< p > "as for the future, will Tesco gradually reduce the proportion of investment and eventually withdraw from China? Will it increase the proportion of investment and gain some benefits from Huarun? I prefer the former."

Lin Yue, chief consultant of Ling Yan management consulting, admitted that without a brand, there would be nothing. "For Tesco, it has nothing in China."

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