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    China'S Retail Business Has Changed A Lot.

    2015/5/3 20:17:00 37

    ChinaRetailing IndustryBusiness Environment

    Huarun's proud store model was almost suddenly ended.

    In Huachang's 2014 earnings report, it is clear that retail sales will expand to small and high-end products in the future. The original hypermarkets or renting or selling will not be the main battleground of the company's firepower.

    In the past two years, hypermarkets are highly competitive in the supermarkets, with a full range of products and attractive prices, which can well satisfy the consumers' one-stop shopping needs.

    But Hu Chuncai, general manager of Shanghai Shangyi Business Management Consulting Co., told reporters that with the development of the electricity providers, especially the mobile electricity providers in the past two years, consumers are becoming more and more accustomed to online shopping. The original two advantages of the hypermarket are no longer there.

    First, online and offline prices are upside down. Generally, online prices are lower than those under the line. Two, there are more online retail categories and larger choices. The scale of single products provided by the current electricity providers can reach ten million levels, with only thirty thousand or forty thousand under the line.

    For example, if the offline business entity is super large, such as Huarun, there are only 2000-2500 subdivision categories. The proportion of choice is at least 1 to several hundred.

    And switching between different online businesses, the cost is zero, and offline stores are less than two or three kilometers away from the nearest ones. Switching takes time cost.

    The above is for consumers, and for businesses, gross profit is mainly contributed by non food and high value foods, such as milk powder and liquor.

    After the electricity supplier cut into this market, according to the law, the labor cost of logistics is almost the same, so the higher the price of goods, the lower the cost of logistics and distribution, and the lower the cost of operation, which eventually leads to the loss of the original value of food and non food two profits from the big business.

    In addition, the cost of rent has been rising rapidly as profits have been diluted.

    The average rental contract of a hypermarket is 10-15 years, and the brand effect of the early owners' map store (especially the foreign capital super business) can promote the appreciation of the land and often cut the meat for rent.

    And from 1995, the oldest one was 20 years old. Over the past 20 years, the price of land has not been doubled.

    So once the contract expires, the owners will increase their rents to recover their losses.

    In the face of this situation,

    Physical retail industry

    Among the largest number of Huarun in the country, the first thing to think of is the channel sinking and the layout of the three or four line cities that have not yet been saturated, with a view to making a difference with the electricity supplier.

    However, I did not expect to encounter the powerful sniper of "local Princes" and defeated in some places.

    For example

    Henan

    In Zhengzhou, Gongyi, 50 kilometers away from the capital city of the capital, Huarun went into the shop. The store area is almost two or three times the size of a local businessman called Kim Ho Lai, but sales are only half the sales.

    The reasons are manifold.

    The key lies in the fact that the scale advantage of Huarun Wanlong in the past is no longer in the small place. It has only one enterprise in the area, and the local "tyrant" like Jin Hao Lai has been rooted for many years and owns dozens of enterprises.

    Although the scale of Huarun's family is not large, it can be more competitive by using the effect of multiple enterprises.

    Especially for the fresh field of the most significant contribution to the shopping mall, the supply chain of Huarun 10000 is bound to be too long, and it may not necessarily be a regional retail entity.

    Another case of Huarun's world halberd happened in the small city of Zhangye in Gansu.

    It is more than 1000 kilometers away from Xi'an and closer to Jiuquan, a well-known satellite launching base.

    But in such a remote county-level city, the Huarun family, which is surrounded by central enterprises, has not been able to fight a local supermarket called Xinle.

    It is reported that Xinle has a sales volume of six hundred million or seven hundred million yuan a year. Huarun's business area is about eight thousand or nine thousand square meters, while Xinle only has six thousand square meters, but Huarun has only finished eighty or ninety of Xinle.

    Besides, the family business is big.

    CR Vanguard

    It is also unavoidable to suffer from what is usually called the big business illness - decision-making and management can not keep pace with local enterprises.

    The advantage of fine management of the store with the Hongkong gene was lost in the process of channel sinking.

    With the comprehensive strength of Huarun Wanjia, it thought that the local enterprises in the three or four tier cities should be vulnerable.

    "I didn't expect to collapse in these small places, which made it impossible to find a way to grow."

    Hu Chuncai said.

    What is even more bad is that in this kind of seesaw battle, Huarun tens of thousands of households are using space to change their time, and the strategy of throwing away the electricity supplier is also beginning to fail.

    The electricity supplier is like a terrible specter. It also follows three or four lines or even more remote rural areas. The same reason is due to the market saturation and operating costs of second tier cities in recent years.


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