Zhang Huaming: Reflections And Suggestions On The Issue Of Consumption Outflow

On the morning of March 8th, the Zhejiang delegation of the National People's Congress held a plenary meeting to examine the plan and budget report, and Zhang Huaming, President of the National People's Congress and President of Hua Zhi Yi fashion group, spoke at the scene.

He said: "I carefully read and learnt the plan report and budget report, and felt the steady progress of the national economy, especially the contribution of consumption to economic growth, strengthening the structural reform of the supply side and enhancing the driving force for continuous growth. It is impressive. Today I want to talk about the thoughts and suggestions caused by the problem of consumption outflow.

1. talk about phenomena: serious consumption outflow and real economic damage

In February 23rd, at the news conference held by the new China office, Gao Hucheng, Minister of Commerce, said that last year, Chinese tourists consumed about 1 trillion and 500 billion of overseas consumption, accounting for 2.2% of 67 trillion and 700 billion GDP.

Enough to see the popularity of overseas consumption.

As China's reform and opening up and the strengthening of its national strength, consumer purchasing power is stronger, and travel is more convenient. Consumers enjoy the pride and sense of acquisition brought by the strong motherland, and also bring joy to foreign businessmen. But this phenomenon makes Chinese high-end department stores, shopping centers, brand stores and brands providing quality products sad.

Why worry? A lot of overseas consumption has dragged away a large number of customers.

Customers are more than China.

Globalization is ahead.

And we are still preparing!

2. reasons: why consumption is outflow

Why do consumers like to spend more and more abroad? I think there are several reasons:

First, many people travel abroad to relax, relax and spend shopping in the process.

Second, many developed countries have a more humane shopping environment, and the choice of commodities is more abundant.

Third, many tourist destination countries have good products, good reputation, luxury goods in Europe, small household electrical appliances in Japan, medicines and cosmetics in Korea all over the world.

Fourth, price, this may be a very important factor, for example.

Cosmetics, such as brand pricing strategy, tax and exchange rate and so on, especially RMB appreciation, Japanese yen depreciation and euro depreciation, foreign prices are lower and more advantageous. Similar brands and goods of equal quality may be twenty or thirty cheaper abroad.

From these phenomena and causes, we can see that our purchasing power is so strong that the whole world is envious. Our opportunities for development are unique. But at the moment, we must also actively face the phenomenon of consumption outflow.

I think the phenomenon of consumption outflow may be a labor pain or a new normal.

How can we improve this problem? I think the business idea must be changed. Domestic brands and retailers need more efforts. They need more efforts to push forward the supply side reform, truly customer oriented, more beautiful and closer to customers, leading to the return of consumption.

So, what is "more beautiful and closer to customers"? I think it is truly customer centered from the bottom of the mind and from action.

More beautiful, endless, product design is more beautiful, the price is more close to the people, the quality is better, the service is more grounded, the environment and the atmosphere are more humanized, the customer can naturally understand your creation and the intention.

Here, I would like to mention that we are promoting "characteristic towns" in Zhejiang, and the combination of "characteristic industries + tourism + consumption" is moving towards a new way in attracting consumers.

3. more beautiful closer to customers, promote overseas consumption reflux

Next, I would like to combine my fashion industry with the layout of Hua Yi Yi fashion group, which runs EP elegant brand and other high-end fashion stores in major cities of the country.

First of all, like our own brand and manufacturer level, the next step is to enhance originality.

To truly integrate the culture of China and the place into products, like the prime minister, we should have the spirit of craftsmen to strive for better products and enhance attractiveness.

On the other hand, many enterprises have a gap with the international brand enterprises in terms of cost management and business efficiency, which means that we must push forward the supply side reform, push forward meticulous management, raise inventory turnover rate, improve our production and business efficiency, reduce the cost price, and give profits to consumers.

Secondly, at the commercial retail level, our downstream retailers, entity retail groups and online retail business giants need to work together to push forward the supply side reform, reduce costs, improve and improve the shopping environment, create a better shopping experience, lead consumers to improve their lifestyles, and increase their attraction to customers.

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Thirdly, from the government level:

First, we should vigorously support brand partners and retailers.

It is very difficult to create a brand for the well-known brands that are popular with consumers. It is not easy to create a brand. We need to work hard for more than a decade and one or two generations, increase the protection and efficiency of intellectual property rights, severely crack down on piracy and counterfeiting, and protect originality and innovation.

More support for brands, help brands do better, only more and more famous brands can realize the Chinese dream.

At the same time, we should pay more attention to retailers and overall support.

The beauty of retail stores is largely reflected in the level of cities, towns, villages and tourist attractions.

Invest more in design and planning, so that every small shop can be more beautiful and dynamic, bringing more beauty to the lives of ordinary people.

Second, help enterprises reduce costs, reduce burdens, and give profits to consumers.

On the one hand, we should further study the value-added tax rate of manufacturing industry, increase tax reduction with the fastest speed and efficiency, and lighten the burden of enterprises.

It enables enterprises to increase R & D technology investment, reduce product costs, and ultimately lower product prices, and make beautiful products that are closer to customers.

On the other hand, we should continue to reduce the cost of energy, pportation, logistics and other aspects on the basis of existing enterprises, and work together with a number of departments to reduce the cost of product operation and give profits to consumers.

Third, we should further optimize the consumption environment, make good business planning, make business more orderly and make pportation more convenient. At the same time, we must do a good job in improving and upgrading the supporting business environment, and comprehensively promote the combination of "five water co governance" to create a shopping environment with sky blue, green land and water.

I firmly believe that we have a bright future in such a huge consumer market. Under the firm leadership of the CPC Central Committee and the State Council, through the above efforts, we must adhere to customer centered, more beautiful and closer to customers, and overseas consumption will achieve a large proportion of reflux. At the same time, we can attract more foreign customers to China for tourism and shopping.

Moreover, in this process, we must take the opportunity to take advantage of the "one belt and one road" approach, and take advantage of the new normal east wind of the global tourism of our customers to firmly "go out" to represent the Chinese culture and achieve business prosperity.

Excerpt: Zhang Huaming suggested one

On establishing standard retail trade guidelines, clear price season and promotion season

Suggestions to make consumption more active

The "13th Five-Year plan" proposal put forward the new goal of "the contribution of consumption to economic growth". As the main form of stimulating consumption, the healthy development of retail industry is of great significance.

The establishment of a standardized retail industry standard is the foundation for sustained and healthy economic development.

However, there are many discounts and excessive promotion in China's retail market, which has affected the long-term development of domestic demand.

This recommendation refers to the retail industry, which includes offline department stores, shopping centers and franchised stores and other retailers, including online Tmall, Jingdong and other major e-commerce platforms.

Next, combined with our industry and our company's understanding of the cooperation between more than 200 cities and hundreds of shopping malls and shopping centers in the whole country, combined with the phenomena I saw at home and abroad, I put forward some personal suggestions.

First, the current situation of China's retail market.

1, the status quo of the retail industry under the line: the phenomenon of the disorder and excessive development of retail industry has appeared in major cities. Frequent price wars are not only popular in holidays, but also often used in the form of "discount", "coupons" and "replacement".

2, the status quo of Online Retailing: the pace of promotion of major e-commerce platforms is inconsistent.

In addition to holidays like offline sales promotion, e-commerce platform has also created its own promotion Festival, such as Tmall's "double 11", Jingdong "618", sales promotion Festival dazzled consumers.

3, there is no positive interaction between online and offline.

The promotion time is inconsistent, the rhythm is not synchronized, the price is not uniform, the two camps under the online and offline battle kill each other, which affects the healthy development of the entire retail market.

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Two, the impact of retail price disorder.

1, promotion is not seasonal.

There is no rule of promotion. Many retailers sometimes do their best in the peak season. They do not earn money during the season of money making. The clearing of the goods does not clear the stock in the season, resulting in a decline in the quality and efficiency of operations, and may even lead to no profit or loss.

2, under the online and offline retailers' disorderly promotions, the lower the price of goods, the less money they can earn. Only by sacrificing their quality to exchange for low prices, they will lead to the spread of inferior products. Eventually, the industry will eventually become vicious competition and disrupt the entire retail market.

Three, some practices of developed countries in the world

1, Europe, Britain, France, Italy and other countries all have a definite discount season.

The winter discount season usually begins at Christmas and ends at the end of December, and continues to the end of February; the discount season in summer usually extends from June to the end of August.

2, the black Friday of the United States (the fourth Friday of November) is the world's famous autumn and winter commodity discount season, which often causes a sensation.

3, the commodities of Japan and Korea will enter a full discount season in January, and big stores and stores will have a crazy clearance sale.

There is a sharp contrast with the fierce discount in the promotion season. In the positive price season, no matter Europe or America or Japan and South Korea, there are very few discounts for shopping malls and brand stores, even if there are only a small discount.

In contrast, it is necessary and urgent to establish a standard retail industry standard in the domestic market, clarify the positive price season and the promotion season, and strengthen the price management and make the retail market orderly. This is also a good breakthrough point in revitalizing the manufacturing industry, stimulating domestic consumption and promoting the return of consumption.

Four, establish a standardized retail industry guidelines, so that business orderly suggestions.

First, retailers under the online and offline businesses should clarify their location to consumers, whether they are discount stores or regular stores.

If it is a regular store, it should follow the retail rules. There will be no discount or discount in the price season. There will be more discount and more profit in the promotion season. If it's a discount shop, it will be promoted according to the discount store products.

Second, clear the season of the positive price and the promotion season.

At present, when the domestic commercial market is in the positive price season and when is the promotion season, it should be clear that a time period should be maintained in the positive price season.

In the discount season, we need to clear up the stock and make profits to consumers.

Third, competent commercial departments should guide influential retail chains, credible brands and large online business platforms such as Tmall and Jingdong to take the lead, maintain and follow the commercial retail regulation.

Online and offline is a business and an important part of business. We should act together and maintain business order.

Fourth, make specific strategic plans for the retail market.

At present, the price disorder in the retail market is partly due to the lack of specific functional departments for guidance and management.

If the consumer goods industry department of the State Administration of letters is responsible for the management of the consumer goods industry, the price department of the NDRC is responsible for drafting the draft policies and regulations on prices and charges, and the price supervision and Inspection Bureau of the NDRC and the antimonopoly bureau are responsible for guiding the price supervision and inspection.

Who will guide, supervise and manage the commercial market order has always been a question mark.

Therefore, it is necessary to make clear the specific departments to manage the retail industry and guide the formation of an orderly retail market order.

Five, summary

China's retail market is already an important part of the world's retail market. Standardized retail industry standards and orderly business market order can lead to healthy competition among business entities, orderly development of the market, and benefit from consumers, retailers and producers.

Orderly business market can fully mobilize the purchasing power of consumers, stimulate consumption, and ultimately stimulate domestic demand growth, and also promote more and better retail brands and fashion brands to grow healthily.