Retail Chains In 2016: Growth Will Slow Down

The market environment has been subverted by multiple factors, and the industry is undergoing major and far-reaching changes.

Whether brand building or competitive environment, whether the choice of consumer shopping habits, or changes in the economic environment, if chain retailers adhere to traditional ideas, they will be faced with their own mode thoroughly.

The same result of counter sales.

The slowdown in industry growth is inevitable until industry change is found to be effective.

In fact, it can be seen from the first half of the year's performance.

According to the statistics of 101 retailers in the first half of the year, 42 companies showed negative growth in sales performance. Similarly, the net profit margin of 42 enterprises declined year by year, and the net profit of Xinhua, Mei bang and other enterprises dropped by even more than 150%.

These data and phenomena fully show that the growth of the industry will further decelerate, and the future situation is still not optimistic.

This is because, after more than a decade of development, the industry has entered the "new normal" as well as the Chinese economy. That is, when a high growth era or cycle is over, it is not known when the next high growth cycle will come, but at least it will not be 2~3 years.

At the same time, the Chinese government hopes to achieve this goal through reform.

The adjustment of economic growth rate is an established process, and the economic environment will not improve significantly in the past one or two years, and the industry will inevitably suffer from this.

According to IMF's forecast, China's economic growth this year is 6.8% or 6.3% next year.

The slow growth of the real economy itself is difficult to change in the short term, and the chill of manufacturing and other industrial industries may only be more intense, which will lead to terminal retail.

In addition, the diversification of shopping channels and ways, as well as the O2O that pays the same price, will indeed take away the small consumer groups of physical retailers.

More importantly, a lot of retail businesses are still sticking to the past profit model. In the face of the rapidly changing market environment, they are simply unable to cope with the predicament of declining performance.

There are no bad industries, only bad ones.

The growth of the industry does not mean that all enterprises are entering the cold winter.

Of course, this is also a matter of format, such as tradition.

The days are obviously not easy.

In the first half of 2016, sales and profits of most department stores both declined. This indicates that whether department stores or shopping centers continue to grow or decline, business has become more difficult.

In contrast, the anti selling ability of supermarket formats is generally better. From the perspective of big RFA, Yong Hui, Wuhan Zhong Bai and step by step listed retail enterprises, sales growth has mostly increased, but the growth is also very limited. Only a few enterprises in Huarun, Yong Hui, and other enterprises have increased by two digits.

It is not difficult to judge that the polarization of physical retail enterprises will become more obvious.

Because the era of big pot has become a history. In the past, some enterprises that lack the ability to operate and innovate with a good free ride in the industry are destined to be eliminated by the rapidly changing market environment. This is merciless, but this is not a bad thing.

For example, some retail enterprises that focus on innovation mode still go against the market, for example, Anhui's Le Cheng still has a year-on-year growth of nearly 50%.

Excellent regional retail enterprises are also emerging. Henan Jin Hao Lai, Gansu Xinle, Henan Lvcheng supermarket, Fujian crown supermarket, Chongqing Feng Wu supermarket and other enterprises in the market competition based on their own advantages, from the upgrading of retail technology to find asymmetric advantages, and achieved good results.