Local Business Super "Segmentation" Chess High

The decline of Tesco Tesco is due to its failure to compete with foreign investors. In fact, more failures come from the strangulation of local supermarkets.

2009, Yonghui, Da Yun FA, Huarun Wanjia... Many large local businesses began to go to the whole country. For those opponents, Tesco Tesco didn't care at first, and at this time it was more persistent in fighting with Carrefour. But soon after, Tesco Tesco began to find out that the situation was not good.

In order to make a difference in the department store industry which has been monopolized by foreign investors for a long time, localization supermarkets must make a more "grounded" market strategy, so as to cut the customer demand in the domestic market.

The first thing to do is Yonghui supermarket, a domestic super giant. After analyzing the industry environment, Yonghui The commodity structure has been adjusted, and the area of fresh business has been adjusted to over 60%. such Differentiation The strategy quickly separates Yonghui from the giants, and foreign investors are often overvalued because of their self reliance. This area is precisely the plate with the highest demand of customers, so we must not miss it.

With abundant fresh products and low prices, Yonghui supermarket has a way out in the Shang Chao industry, and even expands the territory of the force to many parts of the country through this mode. At this time, Tesco Tesco finally woke up, no longer entangled in the battle with Carrefour, and turned its head into the fresh business.

Soon after, Jin Xiuen, chief executive of China, announced that the percentage of Tesco Tesco's purchase had been raised to 40%, and that it would buy directly from the contracted farmers, thereby reducing costs and ensuring low commodity prices.

However, though Tesco Tesco has made an adjustment, but sales performance is not as high as expected by Jin Xiuen.

The unfamiliarity with China's fresh market determines that Tesco Tesco can not succeed in this field. In Yonghui supermarket, leeks, spinach and other vegetables are bundled into small bundles, and onion, green peppers and so on are 22 bundles together. This is enough to ensure the collocation and freshness of vegetables; while in Tesco Tesco, vegetables are single piled up, though convenient for customers to pick one by one, but at the same time, they also leave behind a lot of "defective products" left behind and no one is interested in.

There is still a lot of "ungrounded" behavior.

from Guangdong Huarun's home made the main profit point of making cooked food on the spot, usually cooked food accounted for about 20% of the whole supermarket. Jin Xiuen also painted the tiger and moved the cooked food area into the shop of Tesco Tesco.

In Tesco's Tesco's Deli, sushi to pizza is everywhere. The chef standing behind the counter is wearing white clothes, smiling and very professional. By contrast, the shops of Huarun Wanjia seem to be "low-end": many staff shout loudly, the hot oil in the oil pan is noisy, customers want to walk sideways, otherwise they will encounter the roast duck that has just dripped and dripped with oil. This is more like a farmer's market.

But surprisingly, Huarun's popularity is significantly higher than that of Tesco Tesco. In fact, although the goods are moved from the outside to the interior, consumers still like the traditional bustling shopping atmosphere so that they have more desire to consume. Obviously, the Huarun family is more competitive.

Local supermarkets have led the supermarket industry to develop different kinds of "upgraded version of the vegetable market" and divide the market of foreign supermarkets. In 2013, Tesco Tesco's market share dropped to 2%, while Huarun's share was 6.8%.