Business Planning Business Planning Analysis-06 Analysis-06

Business Planning Business Planning Analysis-06 Analysis-06

Name: Lee Xiantao Branches: Business School , Binhai

UniversityTel: 15253221531

E-mail: Lixiantao365126@126.com

Chinese supermarketsChinese supermarkets

Contents: Contents:

(1) The definition of China supermarket (1) The definition of China supermarket

(2) The rising of supermarket in China(2) The rising of supermarket in China

(3) Chinese consumption habits(3) Chinese consumption habits

(4) Good teachers of Chinese supermarkets (4) Good teachers of Chinese supermarkets (Wal-(Wal-Mart vs. Carrefour )Mart vs. Carrefour )

(5) General situation of Chinese supermarket(5) General situation of Chinese supermarket

(6) How can we get rid of the trouble? (6) How can we get rid of the trouble?

The definition of China The definition of China supermarketssupermarkets

The definition:The definition:

√√Convenience store (CVS) : it’s a small retailing Convenience store (CVS) : it’s a small retailing shop which is located in common community.shop which is located in common community.

Characters as following:Characters as following:

①① timely consumption; boutique operation; timely consumption; boutique operation;

② ② square meterssquare meters (50-200 (50-200 ㎡㎡ ) ; ) ; types of types of commodity---small number;commodity---small number;

③ ③ variety of services variety of services (faxing; printing; booking ticket; (faxing; printing; booking ticket; printing; express services)printing; express services)

The definition of China The definition of China supermarketssupermarkets

The definition:The definition:

√√General supermarket : it’s self-serving GMS (General General supermarket : it’s self-serving GMS (General Merchandise Store) focusing on food and other daily Merchandise Store) focusing on food and other daily products.products.

Characters as following:Characters as following:

①① daily and comprehensive daily and comprehensive (fit for common people; large (fit for common people; large scale)scale)

② ② square meterssquare meters (2500-6000 (2500-6000 ㎡㎡ /6000-10000/larger than 10000 /6000-10000/larger than 10000 ㎡㎡ ) )

types of commodity---large number types of commodity---large number (scale economy)(scale economy)

③ ③ purchasing revolution---once a week/ one time for all purchasing revolution---once a week/ one time for all

④ ④ flexible promotion and mature logistics flexible promotion and mature logistics (information (information management)management)

The definition of China The definition of China supermarketssupermarkets

The definition:The definition:

√√Big mall : it’s a retailing and wholesale shop for all levels. Big mall : it’s a retailing and wholesale shop for all levels. Generally, big mall focuses on clothes, furniture, and other Generally, big mall focuses on clothes, furniture, and other luxuries. luxuries.

Characters as following:Characters as following:

①① daily and comprehensive daily and comprehensive (fit for common people; boutique (fit for common people; boutique operation)operation)

② ② square meters square meters (6000-10000/larger than 10000 (6000-10000/larger than 10000 ㎡㎡ ; point-to-point ; point-to-point service) service)

types of commodity---types of commodity---Coexistence (referring to different kinds of Coexistence (referring to different kinds of commodities)commodities)

③ ③ positioning for the middle class and the upper positioning for the middle class and the upper

④ ④ good reputation; large capital; famous brandgood reputation; large capital; famous brand

⑤ ⑤ transformation to GMS transformation to GMS (threat from on-line shopping)(threat from on-line shopping)

The definition of China The definition of China supermarketssupermarkets

The definition:The definition:

√√Exclusive shop: it’s a retailing format that Exclusive shop: it’s a retailing format that usually focuses some famous brands with usually focuses some famous brands with franchises and guarantees.franchises and guarantees.

Characters as following:Characters as following:

①① boutique operation; different positiongingboutique operation; different positionging

② ② square meterssquare meters (50-200 (50-200 ㎡㎡ ) ; ) ;

③ ③ good reputation and niche market good reputation and niche market

The rising of supermarkets The rising of supermarkets in Chinain China

The rising of supermarkets in ChinaThe rising of supermarkets in China

①① 1978 introduction stage ---“supermarket” format 1978 introduction stage ---“supermarket” format enter Chinaenter China

------fresh ideafresh idea

②② 1980---1991 growth stage---domestic shops--- 1980---1991 growth stage---domestic shops--- actionaction

③ ③ 1992 governments encourage public and private 1992 governments encourage public and private capital enter this field. capital enter this field.

------experimentexperiment

Wal-Mart started to establish its bridgeheads.Wal-Mart started to establish its bridgeheads.

The rising of supermarkets The rising of supermarkets in Chinain China

The rising of supermarkets in ChinaThe rising of supermarkets in China

④④1993---2005 Vassal contended for hegemony 1993---2005 Vassal contended for hegemony (serious competition)(serious competition)

1995 Carrefour entered China;1995 Carrefour entered China;

2004 Supermarkets in China are open to 2004 Supermarkets in China are open to foreign capitalforeign capital

⑤ ⑤ 2005--- A & M 2005--- A & M (Acquisition and merger)(Acquisition and merger)

Chinese consumption habitsChinese consumption habits

① ① Follow as what others doFollow as what others do People would like to imitate others and don’t trust their own People would like to imitate others and don’t trust their own

judgments. (old people)judgments. (old people)

② ② Be sensitive to evaluation from othersBe sensitive to evaluation from others RI= Respect and Image in disguiseRI= Respect and Image in disguise

Individual expectedIndividual expected InteractiveInteractive Evaluation from othersEvaluation from others

Keep “RI”Keep “RI”

Increase “RI”Increase “RI” Decrease “RI”Decrease “RI”

Chinese consumption habitsChinese consumption habits

③③ Varying decision-making and social philosophyVarying decision-making and social philosophy It’s very hard for some people to make final decision. There are two It’s very hard for some people to make final decision. There are two

reasons, which are short of decision-making privilege and value reasons, which are short of decision-making privilege and value criterion.criterion.

④ ④ Easily lured by lower priceEasily lured by lower price Discount and promotion are good news for some people, who are Discount and promotion are good news for some people, who are

likely to take crazy actions in supermarkets. e.g. (Lower price every likely to take crazy actions in supermarkets. e.g. (Lower price every day in Liqun Group)day in Liqun Group)

⑤⑤ Multi-choiceMulti-choice Widening income disparity along with upgrading consumption. Widening income disparity along with upgrading consumption.

Hierarchical demand by MaslowHierarchical demand by Maslow

A---B---C---D---E (self-achieving/ respect/ social relationship/A---B---C---D---E (self-achieving/ respect/ social relationship/

safety/ physiological)safety/ physiological)

AA

BB

CC

DD

EE

Economy developmentEconomy development

Average incomeAverage incomeYear GDP per

capitaGini

Coefficient1980 $312 0.230

1985 $288 0.341

1990 $339 0.348

1995 $601 0.389

2000 $946 0.417

2005 $1703 0.470

2010 $2520 0.520

Population curve

Population (1)

Chinese consumption habitsChinese consumption habits

⑥ ⑥ Self-conscious behaviorsSelf-conscious behaviors

Reasonable consumers tend to make independent decisions Reasonable consumers tend to make independent decisions and take suitable actions, not blind.and take suitable actions, not blind.

⑦ ⑦ Blind idea---“the bigger, the better”Blind idea---“the bigger, the better”

e.g. famous brand must be the best and the foreign products e.g. famous brand must be the best and the foreign products will be better than the domestic.will be better than the domestic.