Facing The Battle, Yi Shuai Is A Big Military Enemy. Why Is WAL-MART China Replacing Five People In Three Years?

(Dirk) (left), Ke Junxian (middle) and Gao Fulan (right).

In June 13th,

China has changed hands again, and has been in charge of the WAL-MART for only two years. Ke Junxian has been pferred to the president and chief executive of Asda, while Ke Junxian, who is president and chief executive officer of WAL-MART Canada, will also serve as Asia regional president, including WAL-MART DirkVanDenBerghe.

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Being the president and chief executive of the Asia region, the WAL-MART is right.

Attach importance to.

In June 1, 2014, Ke Junxian (left) received the handsome print from Gao Fulan (right).

WAL-MART, China, has been replaced by three people in five years. Today, worried about physical retailing, Yi Shuai is a big threat to military strategist.

In June 1, 2014, Ke Junxian received the handsome print from Gao Fu Lan.

Gao Fulan, who has worked in Woolworths for 30 years, has only been president of China for two years.

Frequent changes in the policy led to a lack of continuity in policy and made WAL-MART China more difficult.

As of press release, according to statistics, WAL-MART has closed at least 8 stores in China this year.

Over the past three years, the total number of outlets has exceeded 30, and the speed of opening shops has slowed down significantly.

Sales volume of WAL-MART in China in 2013 -2015 (10000 yuan)

WAL-MART's number of stores in Hua Guan in 2013 -2015

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The number of WAL-MART shops opened in China in 2013 -2015

Back in October 25, 2012, Gao Fu Lan, who has been president of China for half a year, sent a memorandum to WAL-MART's colleagues in China, entitled "WAL-MART China pformation".

This memo can also be seen as the policy agenda of Gao Fu Lan in the next three years.

A "workaholic" Gao Fu Lan loves visiting shops.

The memorandum reiterates that WAL-MART should be the most trustworthy retailer, focusing on future development and streamlining the process.

In order to achieve the goal of WAL-MART China, Gao Fu Lan reiterated the focus of his work in the next three years in his memorandum.

2012: according to the actual situation of WAL-MART China, we have re established the target of sales and profit, and we have changed the bonus plan accordingly.

We started investing in employees again.

There are 18 key projects in the all-around competition project, and more than 200 employees are directly involved.

In order to achieve success, we are adjusting the structure.

2013: our commodity structure will be simplified, and we will respond more quickly and purchase according to the needs of customers.

The construction of supply chain is very important. We will pform and upgrade more stores and close stores that are not profitable.

2014: speed up shop opening, fresh food innovation (WAL-MART fresh food refers to fresh), reduce operating costs.

In 2015: we won the leading position in the market, known for the quality and price of fresh food, and all the stores were profitable.

This is a perfect and ideal policy agenda, giving confidence to the colleagues in China and giving the US headquarters a beautiful cake. Unfortunately, Gao Fu Lan has been promoted to the presidents of Asia region in June 2014 when he promised to accelerate the opening of stores. In this month, he was pferred to the presidents and chief executive of WAL-MART in the United States. He took the lead in holding the largest market share in the WAL-MART market.

In the view of WAL-MART insiders, Gao Fu Lan is a very professional but not understand the Chinese market retail executives.

Gao Fu Lan left an impression on the outside world for two years that he visited all the stores in the country within a year, concentrated on purchasing power, closed down unprofitable stores, and upgraded the old stores.

Although Gao Fu Lan resigned from China, he announced that he would copy the successful model he had explored in China to Asia or elsewhere.

But WAL-MART insiders believe that it left more criticism, but also hidden trouble for WAL-MART's future development.

Gao Fulan changed his predecessor Chen Yaochang's policy of decentralization of purchasing power, and began to concentrate on purchasing power step by step. First, the District purchasing office was integrated back to the regional purchasing center, and then the regional purchasing center was integrated into the national procurement center. All the purchasing personnel were in Shenzhen Headquarters Office.

The communication between operation and procurement is becoming more and more unsmooth, and the ability to respond to the market is getting worse.

Gao Fulan believed that the procurement power should be concentrated, and more powerful suppliers should be chosen, so as to negotiate more advantageous prices.

But reality is another way.

China has a vast territory, and its consumption habits are very different.

For example, centralized purchasing of clothing, non food and so on seems to have lowered prices and raised gross margins.

But it ignores the fact that if a higher gross margin is not able to generate sales, its gross margin will be zero.

The consumption of regional characteristics is quite different in China. Centralized purchasing can not achieve maximum benefit. At the same time, because of the different printing time and area, the price advantage of posters is always uneven.

Camp communication relies on mail only to make the operators in the front line more passive.

And there is a phenomenon that, in view of the reasons for poor sales, procurement accuses the operation of not controlling the quality of the goods, while the operation accuses the goods that the bargaining partners have no price advantage relative to their competitors.

Such internal friction can only make the market competitiveness decline.

The "Chen Yaochang era" once let stores see hope.

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Chen Yaochang's procurement decentralization has made the stores full of vitality, and business activities are more close to consumers.

Although commercial corruption has been caused by the charging of suppliers' overhead and passage fees, it seems that in WAL-MART insiders, Chen's reform direction is right, and the key is how to regulate it.

Gao Fu Lan's two-year term in the industry seems to be a return to WAL-MART culture and values. But it has not fundamentally changed the profit model and direction of WAL-MART China.

Just as the memorandum says that all stores maintained profits in 2015, Gao Fu Lan once stressed at the meeting: "if WAL-MART China wants to make profits, every shop will make profits. Every shop must make sure that fresh food is profitable.

If you want to make a profit, you must make profits from fruits and vegetables and meat and poultry.

In the procurement chain, compared with competitors, there is no absolute advantage. Business relies solely on commodities to earn profits, rather than big profit goods and property are making profit models.

If WAL-MART wants to make profits, it will only make an issue on the price, which will lead to a decline in competitiveness and thus fall into a more difficult circle.

In 2011, Ke Jun Yin joined WAL-MART China as chief operating officer, and succeeded Gao Fu Lan as president of WAL-MART China in 2014.

Since then, Ke Junxian, a financial source, has continued to paint the grand blueprint that Gao Fu Lan did not achieve. In the eyes of the insiders, Ke Junxian is continuing the policy of Gao Fu Lan and paying more attention to profits.

In order to maximize profits, store fresh food is not in the market competition, reduce the gross loss due to the price, for fresh food zoning is not checking sales performance, but only consider gross margin.

Unlike his predecessor, Ke Junxian is also in the implementation of a shop and a shop, which is not as high frequency as the predecessor, and the important thing is to solve practical problems.

In his view, WAL-MART executives tour shop operation will be reported to the shop, each store problem is different, the shop report is easy to be used as a standard and misleading national stores to perform.

In fact, the biggest advantage of WAL-MART is the standard operation standard and rigorous process. Therefore, he thinks that to return to the foundation is to reiterate the existing operating standards and processes of WAL-MART.

However, Ke Junxian's achievements during his tenure also have some notable points. He has made efforts to cross-border electricity providers, wholly holding 1 shop, and testing water O2O business "quick purchase".

In May 28th, WAL-MART officially opened in Zhuhai's Le world, the first shopping center project in China. Sam's member stores are also accelerating the layout development. In general, WAL-MART is still making a smooth pition in WAL-MART.

WAL-MART said that China's stores were strong during the Spring Festival this year. WAL-MART's total sales in China increased by 5.1% in the first quarter, up 1.4% from sales and 5.2% by the price of customers.

At the same time, Nelson data show that as of March 2016, WAL-MART China FMCG has achieved growth in the market share for 13 consecutive quarters.

It also drew a complete conclusion for Ke Junxian's five years of China's retail career.

Unfortunately, its dominant hourly workers' reform has just been put on the agenda.

DirkVanDenBerghe, currently president of WAL-MART Canada and CEO, will lead the Chinese team.

In the future, the new president, Dirk, is running the Chinese region in the western retail mode.

But today's WAL-MART China is facing more pressure than its predecessor in the face of the economic situation, competition environment and performance.

WAL-MART, the world's number one retailer, has little vitality in China and frequently turns around or is helpless.