Business Planning Analysis-07 Name: Lee Xiantao Branches: Business School, Binhai University Tel: 15253221531 E-mail: [email protected].

Business Planning Business Planning Analysis-07 Analysis-07

Business Planning Business Planning Analysis-07 Analysis-07

Name: Lee Xiantao Branches: Business School , Binhai

UniversityTel: 15253221531

E-mail: [email protected]

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?

Wal-Mart vs. CarrefourWal-Mart vs. Carrefour

Weigh pros and cons Weigh pros and cons

Advantages:Advantages:

Wal-Mart (EOS)Wal-Mart (EOS)

① ① Advanced information technology systemAdvanced information technology system

☆ ☆ EDI---Electronic Data InterchangeEDI---Electronic Data Interchange

☆ ☆ ECR---Efficiency Customer ResponseECR---Efficiency Customer Response

☆ ☆ QR---Quick ResponseQR---Quick Response

☆ ☆ POS---Point of SalePOS---Point of Sale

Wal-Mart vs. CarrefourWal-Mart vs. Carrefour

Weigh pros and cons Weigh pros and cons

Advantages:Advantages:

Wal-Mart (EOS)Wal-Mart (EOS)

Information system based on Internet/IntranetInformation system based on Internet/Intranet

Retailers’ SCMRetailers’ SCM

Synchronization and integrationSynchronization and integration

SupplierSupplier Logistic and distributionLogistic and distributionCustomers’ demandCustomers’ demand

Wal-Mart vs. CarrefourWal-Mart vs. Carrefour

Weigh pros and cons Weigh pros and cons

Advantages:Advantages:

② ② Supply chainSupply chain (Horizontal extension)(Horizontal extension)

Vertical extension---Acquisition & MergerVertical extension---Acquisition & Merger

e.g. Carrefour acquired Baolongcang (a local supermarket) in e.g. Carrefour acquired Baolongcang (a local supermarket) in 2010.2010.

DesigningDesigning PurchasingPurchasing ProducingProducing Order processingOrder processing

POS terminalPOS terminal

WholesalersWholesalersLogisticsLogistics

Wal-Mart vs. CarrefourWal-Mart vs. Carrefour

Weigh pros and cons Weigh pros and cons

Advantages:Advantages: Wal-Mart bought 35% stocks of Wal-Mart bought 35% stocks of Bounteous Company Ltd. (BCL)Bounteous Company Ltd. (BCL)

in 2007. in 2007.

③③ Scale economy

capital-oriented + branches + Information technology + Brand capital-oriented + branches + Information technology + Brand effecteffect

Trust-Mart Trust-Mart （好又多）（好又多）

Wal-Mart vs. CarrefourWal-Mart vs. Carrefour

Weigh pros and cons Weigh pros and cons

Disadvantages:Disadvantages:

①① Localization is in low level Localization is in low level

cultural transplantation;cultural transplantation;

the number of middle-managers ;the number of middle-managers ;

legal system;legal system;

Wal-Mart vs. CarrefourWal-Mart vs. Carrefour

Weigh pros and cons Weigh pros and cons

Disadvantages:Disadvantages:

②② Adaptability Adaptability

independent expansion (relying on inner capital and brand independent expansion (relying on inner capital and brand effect);effect);

large scale causes to lower flexibility and operation model is large scale causes to lower flexibility and operation model is too simple to cope with.too simple to cope with.

Wal-Mart vs. CarrefourWal-Mart vs. Carrefour

Weigh pros and cons Weigh pros and cons

Disadvantages:Disadvantages:

③ ③ Low price takes the place of quality controlLow price takes the place of quality control

fake/ overdue commodity/the obligation of compensationfake/ overdue commodity/the obligation of compensation

④ ④ Rigid operation systemRigid operation system---(entry cost/ additional ---(entry cost/ additional charge/priority charge)charge/priority charge)

General Situation of Chinese General Situation of Chinese SupermarketsSupermarketsGeneral situationGeneral situation

①① Small scaleSmall scale leads to hard position in leads to hard position in negotiating with suppliers.negotiating with suppliers.

(eg. reducing bargaining power/ the more, the better)(eg. reducing bargaining power/ the more, the better)

② ② The positioning is not clear.The positioning is not clear. (eg. CVS; GMS; Big mall; exclusive shopping/ Who is our (eg. CVS; GMS; Big mall; exclusive shopping/ Who is our

potential customer?)potential customer?)

desolate MYKALdesolate MYKAL

General Situation of Chinese General Situation of Chinese SupermarketSupermarket③③ Just for quantity, not quality.Just for quantity, not quality.

(Good reputation usually comes from “beautiful things, better (Good reputation usually comes from “beautiful things, better prices”.)prices”.)

Hualian and lianhua always prefer to establish more and more Hualian and lianhua always prefer to establish more and more branches and branches and

hope to beat other competitors relying on hope to beat other competitors relying on “the wolf pack “the wolf pack tactics”.tactics”.

④ ④ Short of capital ,advanced technology and Short of capital ,advanced technology and excellent staff.excellent staff.

(Staff is the master of capital and technology/(Staff is the master of capital and technology/

How can we make integration among them. )How can we make integration among them. )

How can we get rid of the How can we get rid of the trouble?trouble?②②Make clear segmentation, positioning and Make clear segmentation, positioning and

target.target. (market segmentation/product positioning/ targeting market)(market segmentation/product positioning/ targeting market)

Price is the key that effects the final purchasing-decision of Price is the key that effects the final purchasing-decision of most customers.most customers.

You must know your product is suitable for who ? You must know your product is suitable for who ?

③ ③ Keep a balance between quality and quantityKeep a balance between quality and quantity

(large scale is a coin with two sides. The bigger is only a choice (large scale is a coin with two sides. The bigger is only a choice and and

good quality and reputation are the same as the scale. )good quality and reputation are the same as the scale. )

Chinese supermarkets must realize “the most suitable is the Chinese supermarkets must realize “the most suitable is the best”.best”.

How can we get rid of the How can we get rid of the trouble?trouble?④ ④ Improve the information technology and staff Improve the information technology and staff

managementmanagement

(application and update information system, especially to the (application and update information system, especially to the logistics logistics

and inventory/ dynamic staff management/ cultivate own and inventory/ dynamic staff management/ cultivate own brand and spirits)brand and spirits)

⑤⑤ Take A & M strategy to strengthen itself.Take A & M strategy to strengthen itself.

(like Carrefour and Wal-Mart acquired domestic supermarkets)(like Carrefour and Wal-Mart acquired domestic supermarkets)

On-line shoppingOn-line shopping

On-line shopping market and its growth rateOn-line shopping market and its growth rate

(CNY---100 million)(CNY---100 million)

On-line shoppingOn-line shopping

On-line shopping marketOn-line shopping market shareshare

On-line shoppingOn-line shopping

On-line shopping product On-line shopping product

On-line shoppingOn-line shopping

Money paid each time Money paid each time

On-line shoppingOn-line shopping

Evaluation for on-line shopping (1)Evaluation for on-line shopping (1)

On-line shoppingOn-line shopping

Evaluation for on-line shopping (2)Evaluation for on-line shopping (2)