In 2004, the monopoly of supermarket chains in China intensified.
According to the data of China Chain Store & Franchise Association, in 2004, the top 100 chain enterprises in China achieved a total sales of 496.8 billion yuan, an increase of 39% over the previous year. In 2004, the total number of stores in the top 100 chain enterprises reached 304 16, an increase of 49% over the previous year. The total business area reached 25.8 million square meters, an increase of 35% over the previous year. The number of employees is 8 1 10,000, an increase of 27% over the previous year. It is worth noting that among the top 100 chain enterprises in China announced by China Chain Store & Franchise Association in 2004, more than 70% enterprises set foot in the supermarket industry. According to the analysis of sales and store data, although the concept of supermarket chain has only appeared in China for 15 years, the monopoly degree of the industry exceeds the data of the first 50 years in the United States.
Another noteworthy phenomenon is that in 2004, foreign-funded enterprises blossomed in an all-round way. Judging from the ownership ratio of the top 100 retail enterprises in 2004, the state-owned, private and foreign-funded enterprises were 45%, 32% and 23% respectively, but the upward trend of foreign investment was very obvious, with an increase of 7 percentage points, while private and state-owned enterprises declined accordingly. From a regional perspective, foreign-funded enterprises not only stay in first-tier cities, but also have obvious expansion in second-tier cities and the western region.
On June 5438+February1KLOC-0/day, 2004, the Measures for the Administration of Foreign Investment in Commercial Fields (hereinafter referred to as the Measures) of the Ministry of Commerce will be formally implemented. According to the provisions of the "Measures", China will gradually liberalize the restrictions on foreign-invested enterprises from June 5438+February 2004 165438. What's more, among the global 100 retail enterprises, only 16 has entered the China market, and the other 84 may come at any time, so the competition trend will be more intense.
Faced with these harsh realities, China local supermarket chains, especially small and medium-sized local supermarket chains, have just been born, and they are facing fierce market competition. So what is the present situation of supermarket chains in China?
Domestic supermarket chains are blowing up the wind of "closing down"
According to incomplete statistics, in the past 18 months, at least 150 supermarket chains in China closed down. Different from the closure of small supermarkets in the middle and late 1990s, the new wave of closure mainly started in large and medium-sized supermarkets.
On June 65438+1October 65438+September 2004, Jiayi Group, the largest supermarket chain in Guangdong Province, closed all its stores. Subsequently, the state-owned shareholders of Chiayi filed for bankruptcy. At the beginning of the new year in 2005, Shanghai Meiya Investment Company closed its 500 inefficient 2 1 century convenience stores. At this time, it is only one and a half years since Meiya bought 2 1 century convenience store from the original shareholders such as Shanghai Cheng Kai Group at a high price of 200 million yuan. On March 4th this year, China Pulsmart, once known as one of the largest retail enterprises in China, closed all 46 large chain stores in 19 provinces, municipalities and autonomous regions. On May 6th, Shenyang leading chain enterprise "Green Sunshine" suddenly closed its 68 supermarket chains.
In fact, Puls Matt, which only has a western appearance, is not an authentic foreign supermarket, but a foreign name obtained by a domestic company named Beijing Puma Group through franchise. Foreign companies with brands have not invested a penny in China, nor have they sent any managers of their own, and the expansion mode of China Puls Matt is also typical of Chinese style. On the one hand, we rely on bank loans, on the other hand, we rely on suppliers to sell on credit. As a matter of fact, "China Puma" itself has not invested any capital except the initial capital injection. In 2004, it reached the peak of annual sales of 4 billion yuan and about 46 stores, but it collapsed in 2005.
The above-mentioned failure cases are more prominent among local medium-sized chain enterprises in China. Although the reasons for their failure are different, they all reflect the harsh living conditions faced by local small and medium-sized supermarket chains in China from one side.
Present situation of small and medium-sized supermarket chains in China
After China joined the WTO at the end of 20001,according to the agreement, the retail industry has a three-year protection period after its accession to the WTO. Now that the protection period has passed, the small and medium-sized supermarket chains in China have not made great progress, but the gap with foreign chain enterprises in China has widened. These gaps are not only reflected in the turnover and the number of stores, but also in the business philosophy and the operation of the chain system.
According to statistics, China's supermarket chain enterprises currently have an average of about 10 stores, most of which have business areas below 1000 square meters and annual turnover below 1 100 million yuan. Small scale has become the bottleneck of the development of domestic supermarket chains. The scale is too small to give full play to the advantages of chain supermarkets, and it is difficult for enterprises to enjoy the price concessions of bulk purchase. At the same time, it is difficult to improve the distribution efficiency of the distribution center, which increases the procurement cost and loses the price advantage of the supermarket chain. There are too few stores in chain supermarkets, which reduces management efficiency, makes it difficult to dilute operating expenses and management expenses, and increases management costs.
As a modern commercial retail model, chain supermarkets need a lot of modern management techniques in the whole system operation. Including headquarters management, distribution center management and store management, each system contains many subsystems, and the function realization and coordination of each link in this chain system depends on computer technology and modern information technology. However, many supermarket chains in China still use the traditional old model to manage enterprises, and the management level is far below the advanced level in the world. The low management level is reflected in the chaotic management of single items in store operation, which can not be adjusted in time according to customer needs, and the operating cost is too high, and the profit rate is far below the advanced level in the world.
Most supermarket chains in China do not attach importance to business philosophy and market positioning. Therefore, apart from the obvious differences in scale, the performance of the stores is similar, which makes people feel the difference in market positioning. Consumers can choose a supermarket at will when shopping, resulting in fewer and fewer corporate brand loyalists. Due to the serious homogenization of store image, service mode and product content, the only means of competition is price war. However, because there is no scale effect and management advantage, in today's retail industry, the profit margin is extremely thin, and a price war is tantamount to drinking poison to quench thirst. In recent years, the closure of small and medium-sized supermarket chains in China has proved this truth again and again.
The key to the development of small and medium-sized supermarket chains in China
In recent years, how to find the way of development for local small and medium-sized supermarket chains has become a highly valued topic in the industry. Although there are many methods and schools, the mainstream conclusion is nothing more than learning and introducing foreign advanced management systems, expanding rapidly and forming scale effect. The author also agrees with this suggestion, but any effective method needs to be suitable for the actual situation of the enterprise itself. For large supermarket chains with strong profitability, strong own funds or sound financial system, stable operation and continuous financing channels, rapid expansion is a logical development strategy. The advanced foreign management system has long been proved to be effective, and it is an important part of the chain supermarket's strategy of seeking benefits from management. However, in years of practice, the author found that this model is not a panacea that can be applied everywhere. The successful enterprises relying on this model are concentrated in medium and large chain enterprises, which all have their own profitable store operation system. The strategic core of these enterprises is how to deal with the challenge of foreign giant chain enterprises entering China, so rapid expansion and good internal strength are the only way to success. However, after the implementation of this strategy, many ambitious small and medium-sized supermarket chains in China have fallen into deeper confusion. Not only did it have little effect, what's more, due to excessive expansion or blind investment in a large amount of operating funds to introduce advanced management systems, it eventually led to the exhaustion of funds and bankruptcy.
Through detailed analysis, the author found that learning and introducing foreign advanced management system expanded rapidly, forming scale effect. This model has developed to a certain stage in chain supermarket enterprises, and the effect it can bring is very obvious. However, it is not suitable for small and medium-sized supermarket enterprises in China. First of all, the biggest problem of these supermarket chains at this stage is that they can't find a sustainable profit model and are basically in a passive situation. Hoping to change this situation through rapid expansion is tantamount to gambling. Even if you succeed by luck, it won't last long. Rapid expansion and increasing the number of stores cannot automatically form a profit model. If a store doesn't make money, many stores lose money faster. At present, it is difficult for small and medium-sized supermarket chain enterprises to obtain rapid financial support through China's banking system, so the payment owed to builders, owners and suppliers has become the main financing method. For these supermarket chains that have not found a stable profit model, they choose to expand rapidly in Zhang Zhilu, but most of them will close down soon.
The introduction of foreign advanced management system and software and hardware equipment can significantly improve the operation efficiency of stores and even the whole chain system, but the introduction and establishment of this system involves costs, and the initial purchase price and the cost of continuous use are very expensive. Only when the number of existing stores in supermarket chain enterprises can match the imported management system can the overall cost-saving benefits be highlighted. Otherwise, it is because the number of stores is not enough. Although some data of single-store operation has become beautiful, on the whole, there is no burden, which is what we often say: small heads wear big hats! In addition, the software and hardware of many foreign management systems are mostly tailored for large chain enterprises, which are not suitable for small and medium-sized chain enterprises in China. Enterprises that blindly believe in these management systems often find that the treasure they get back from selling iron in a cauldron is far from the legendary myth. In addition, the quality of their employees can not change qualitatively in a short time, and these high-priced software and hardware have become a store decoration that makes people laugh and cry. The author once saw a private supermarket, which was in a state of being neither dead nor alive for a long time, and introduced an expensive ERP system with all the funds, hoping to make rapid progress with the east wind of modern technology. Because their managers are mainly high school graduates, they don't even know how to do simple EXCEL forms, let alone ERP that they have never heard of. However, customers did not increase their purchases because they bought an expensive ERP system. As a result, it is conceivable that the supermarket closed down for lack of working capital in less than half a year. Therefore, the author thinks that the management concepts of any modern supermarket chain, such as ERP, CRM, logistics system and breeding center, are very effective for enhancing the core competitiveness of enterprises, but it should be noted that these concepts must be combined with the enterprise's own situation, especially domestic small and medium-sized supermarket chain enterprises should be more cautious when making capital investment decisions!
At present, the primary consideration of domestic small and medium-sized supermarket chains is not how to expand rapidly, but how to survive! For any enterprise, the only criterion for survival is the profitability of the enterprise. The author thinks that for small and medium-sized supermarket chains in China, the profitability should first come from a frugal corporate culture and a misplaced business strategy to find their own unique market positioning. At the beginning of the establishment of international giants such as Vuormaa and Carrefour, there was no modern scientific management system and hardware and software equipment armed to the teeth. The first few storefronts of these enterprises will be defined as bland in the eyes of many so-called experts who admire ERP and CRM. But from the beginning of their establishment, although weak, they have an innate light, that is, the spirit of thrift and clear and distinct market positioning! Many people think that small and medium-sized supermarket chains in China are facing the direct challenge from international supermarket chains, which is completely different from the era when Vuormaa was founded decades ago. But this idea is wrong, because at the beginning of Vuormaa's establishment, the competitive pressure in the United States far exceeded that of small and medium-sized supermarket chains in China. Therefore, no matter in which era, no matter what kind of management technology appears, the internal factors that determine the success of an enterprise are unchanged.
Diligent and thrifty corporate culture
It seems a little outdated to talk about frugality today when profound business theories emerge one after another, and it may even disappoint some readers. When every competitor can easily buy the latest equipment, hire the most experienced professional managers and provide the most complete variety of goods, supermarket chain enterprises seem destined to become one of many twin brands. But the good news is that we don't need to despair. Today, with the homogenization of hardware and equipment, corporate culture has once again become our magic weapon to defeat the enemy. Today, the retail industry has already become a low-profit industry, and the corporate culture of diligence and thrift has not become outdated because of the emergence of new technologies, but has become more important than before.
When sam walton became the richest man in the world, he still drove his old Ford truck, paid a few dollars for a haircut, and was furious that a manager in Vuormaa forgot to turn off the light. If you walk into any Carrefour store and visit their manager's office, you will be surprised. The offices of the world's top 500 managers may be small, and even you feel wronged for them. "Waste of resources is the fatal mistake of IKEA" has long been written into the management manual of IKEA. Ikea employees always fly economy class when they are on business trips, but they take buses instead of taxis on weekdays. In fact, cost reduction runs through the whole process of IKEA products, from product conception, design, production to transportation and marketing. For these Fortune 500 companies, a few kilowatt hours are wasted, and a few first-class air tickets are only 9 Niu Yi cents for them. Today, the spirit of diligence and thrift is still regarded as a dogma by their managers, and this phenomenon is worth pondering by domestic small and medium-sized supermarket chains.
For many supermarket managers in China, keeping one's mouth shut is a modern management theory, but they forget that thrift is the most basic rule of ancient retail industry. Decorating offices and luxury cars has become a common practice in most supermarket chains in China. Retail industry does not need empty and complicated theories, but needs a down-to-earth and hard-working spirit. If even this basic principle of retail can't be achieved, the development of small and medium-sized chain enterprises will be just castles in the air. China's small and medium-sized supermarket chain enterprises are faced with foreign-funded chain giants whose financial strength is thousands of times higher than their own. Their first task is not to talk about management strategy, but to cultivate a cruel and thrifty corporate culture. Without this culture, no matter how advanced management theory and science and technology can help you save costs. This kind of culture should not only be written in the management manual of the store, but more importantly, it should first be reflected in the senior leaders of the enterprise. In any era, it is the people who make up the enterprise, not the machines, that determine the success or failure of the enterprise. Although small and medium-sized enterprises do not have enough funds to buy the most advanced equipment, unexpected changes can occur when the thrifty corporate culture is deeply imprinted on the psychology of every employee. The most famous example is the invention of IKEA's "self-assembled furniture". It is an employee's cost consciousness that leads to flat packaging in IKEA, which leads to the conclusion that the more "detachable furniture" is produced, the less it is damaged in transit and the lower the freight. Since then, IKEA has embarked on the road of detachable furniture, which has removed a huge obstacle for it to become a global giant today.
Unique market positioning
At present, most local small and medium-sized supermarket chains in China do not attach importance to business philosophy and market positioning. Therefore, apart from the obvious differences in scale, the performance of the stores is similar, which makes people feel the difference in market positioning. Consumers can choose a supermarket at will when shopping, resulting in fewer and fewer corporate brand loyalists. Due to the serious homogenization of store image, service mode and product content, the only means of competition is price war. However, because there is no scale effect and management advantage, in today's retail industry, the profit margin is extremely thin, and a price war is tantamount to drinking poison to quench thirst. In recent years, the closure of small and medium-sized supermarket chains in China has proved this truth again and again.
Under the low-price market squeeze strategy of chain giants, how to establish a sustainable and profitable business model is the key to the survival of small and medium-sized supermarket chains. Compared with the chain giants, the financial strength, business scale and supporting management system of small and medium-sized supermarket chains are simply vulnerable. The only strategy we can adopt is to use unique market positioning and misplaced management! According to the positioning theory of retail industry, stores will win as long as they do their best in one of the following five key areas: variety (rich), price (cheap), fashion (popular), service (convenient) and quickness (fast). In fact, retail giants such as Vuormaa and Carrefour have performed very well in these aspects, but because they strive to maintain their advantages in these five aspects, any single product is only excellent, not the best!
Below we list some excellent American enterprises, but they have achieved remarkable success in the most powerful home of Vuormaa.
Variety: This kind of store provides the most complete variety on a specific type of goods. For example, homedepot for home decoration, Smart Pet Company for pet food and appliances, Best Buy for household appliances, Toys "R" US for children's toys and Office Depot for office supplies. Small and medium-sized supermarket chains in China can completely imitate this idea on a certain kind of goods and provide more choices than retail giants.
Discount on high quality and good price (fashion): This kind of shops take "fashion and cheap" as the slogan and offer discounts on advanced products. For example, Target and Vuormaa have the same goal, both of which are to provide goods with high discounts. But the difference is that these goods are popular and fashionable products, not the staple food in Vuormaa stores. Domestic small and medium-sized companies imitate their strategies, and they don't necessarily have to fight price wars on the product categories of retail giants, but adopt the strategy of Tian Ji horse racing and take another product portfolio as their long-term price reduction goal.
Black Price (Cheap): Even if Wal-Mart can hardly make other retailers do better than itself in terms of low price, there are still some stores that can compete with it in terms of low price (low cost). The key to lowering the price is obtained at the expense of other interests. For example, the basic feature of a family dollar store is to abandon many things that competitors think are very important and only target the low-income class. Small and medium-sized supermarket chains in China can learn from their experience. They don't want more products and perfect services, but provide some price-sensitive consumers with the prices they want.
Convenience service (convenience): Seven Eleven is the representative of this kind of store. The price of their goods is much higher than that of similar products of Wal-Mart, but because of its convenient geographical location, convenient shopping time and process, it has become the chain system with the largest number of stores in the United States. At present, this kind of convenience store has appeared in China and has formed a certain scale. However, due to the different social consumption concepts, it is not mature for convenience stores to develop rapidly in China.
Drive-in service (fast): Time-saving drive-in service has brought competitive advantages to many stores. Even Wal-Mart's own community market has added a "drive-in" window for customers to buy medicines. Although this service is not suitable for the consumer market in China at present, the concept of fast payment can still bring some enlightenment to small and medium-sized supermarkets.
Due to the negligence of competitors (retail giants such as Vuormaa), the above stores did not win by luck. In order to achieve the best goal in a specific field, these retailers have done all the strength of the company, which is precisely the fundamental driving force for their operation. Through the above analysis of the American retail market, we find that the success factor of small and medium-sized supermarket chains lies in their ability to find their own unique market positioning different from their competitors. Only according to their own resources, establish their own unique market positioning in a certain field, differentiate their operations, and strive to be the best, can we avoid homogenization and cruel price competition.