Article by jekky
China since the end of 2004Retail Since the full liberalization of the market, China’s retail industry is the steady growth of the whole, but the forms of different shows on different situation. Foreign hypermarkets because of their advanced management experience and capital operation of the means of gradually showing advantages, its rapid rate of expansion is worrying. The smallest degree of local competition, with its regional department store brand and seek progress for many years, so that “foreign department” look its sigh. China’s most powerful local
Home Appliances Retailers in Dances with Wolves in the beginning of recombination, from the initial resistance to opening up into the now calm face.
Advantage of foreign supermarkets starting to prove1995 joined China’s first foreign-owned supermarketsCarrefour In our retail business is not fully open until the policy in various ways to fight edge ball, after a decade of Happy Valley enclosure, the number of its stores in China is far ahead of not only the world’s largest retailer Wal-Mart, but also local chain
Supermarket The formation of an overwhelming trend. According to itsPR Department Manager Li said, and now Carrefour stores in China has reached 85. Different, in 1996 Wal-Mart entered China’s open door policy because of the restrictions, in landing the Chinese market has been losing money for years, the speed is very slow during the shop: average 5. But since 2005, with the policy of opening up, its a year out of 14 new stores. Wal-Mart recently rumored acquisition of Trust-Mart For more than 100 stores to accelerate expansion.
With the gradual opening of China’s retail sector, foreign retailers in China, mainly in competitive hypermarket Format, they seize the Chinese new stores through the first and second tier cities, with sales of more than a local supermarket. Shanghai Chain Management Association, Shanghai 2005, 67 foreign supermarkets (hypermarkets account for 53% of the total number) had completed 76% of sales in the city’s supermarkets.
CITIC Securities Co. retail analyst Chen Chen expressed concern that “the absolute advantage of foreign hypermarkets have appeared, while the local supermarket only first-class level in the stream of foreign capital. If this continues, the local supermarket means that China’s position in the retail industry there is no. “
Local department store is far better than foreignLocal department stores and China is in the process of opening up the retail release of energy, big business, Dalian, Beijing, Wangfujing, Shandong Ginza department stores such as several first-class group, with strengths and resources in the past years, gold monopoly sign, its total sales, store growth and the number is far better than Parkson, Pacific and other world famous restaurant, dominated by the hundred in 2005 the forefront of retail enterprises.
According to reports, the second and third tier cities in the department store business in the retail industry competition degree is the lowest, although the same foreign tax benefits and other general merchandise super-national treatment, but the local regional enterprises have unique competitive advantages and reputation, not its overall competitiveness, as supermarkets are significant differences between, and this gives hope that the foreign department sigh.
M & A boom lift home appliance chainCommitments under the WTO protocol, by the end of 2004, after the full liberalization of China’s retail market, allowing wholly-owned enterprises to enter China and are not commodities quotas. However, to enter China in 2003 the world’s largest home appliance chain, the world’s 500 Best Buy, but nothing settled on the land. End in May this year bought a high premium in Jiangsu Five Star
Electrical. Chinese home appliance chain of value and competitiveness is evident.Home appliance chain is the highest degree of market concentration, one of the most competitive industries. Local home appliance retailers as an earlier start, has accumulated abundant capital and rich management experience, from the initial resistance has been opened into the now calm face.
Now States United States Suning, Dazhong and other domestic companies have monopolized the market. States United States after the acquisition of Paradise, to further consolidate its giant status. Suning has a frank expression of high-rise headquarters for the local appliance retail businesses, not foreign pressure. Golden State securities data show that in 2005 China’s retail sales volume Gome Enterprise hundred second with 498 billion yuan, an increase of 109%, the number of stores reached 426, an increase of 88%. The third Ming Suning Electrical Appliance Group sales volume increased 80% to 397, the number of 363 stores, an increase of 88%. According to the China Chain Store & Franchise Association, into the hundred of household electrical appliance enterprises, 50% of the acquisition by means of small home appliances retailers will be acquired by foreign giants.
Li Yang said China researcher at the WTO, as China will retailService Industry viewed as a competitive industry, in fact, open for retail than WTO commitments under the Protocol to fast more.
Accession to the WTO five years, the home appliance retail sector has made remarkable achievements, but there are some problems, such as last year’s Puma cases also for domestic use “type of financial model” of retailers sounded the alarm, once the capital chain rupture, the retail building would collapse like dominoes.
[Key words]: Retail Channel Dynamic Comment Large In
Small
About the Author
The e-commerce company in China offers quality products such as 4D Cinema System Manufacturer, China 3D/4D Driving Flight Simulator, and more. For more, please visit 4D Cinema System today!
