Today’s chain retail industry is expanding at an extraordinary and extraordinary speed. Looking at the development of China's chain retail industry, it has been introduced into our country since the mid-to-late 1980s. Initially, it was mainly based on joint venture catering industry, such as "KFC" in the United States. At that time, there were also some domestic commercial enterprises that learned from foreign experience and tried to open chain stores, but the number was very small and it did not last long. In the late 1980s and early 1990s, due to the weak domestic circulation market and sluggish sales, commercial enterprises began to explore chain business methods in order to survive and develop, drawing on foreign experience in scale efficiency, and finally on December 26, 1990. The first supermarket chain in China was born. As of this year, China's chain retail industry has spent twelve years. After a long period of exploration, research and discussion, the development of Chinese enterprises is now advancing by leaps and bounds, and the exchange and understanding of management knowledge are greater than ever before. Periods must be frequent and rapid.
According to statistics from the China Chain Store and Franchise Association, the top 100 chain stores achieved a total sales volume of 162 billion yuan in 2001, including 135 billion yuan in direct-operated store sales and 27 billion yuan in franchise store sales. The number of stores reached 13,117, an increase of 56%, including: 7,741 directly operated stores and 5,376 franchised stores. The business area was 8,367,132 square meters, an increase of 62%. The number of employees was 416,442, an increase of 63%. In 2001, the sales of the top 100 chain stores accounted for 4.3% of the total retail sales of consumer goods. The sales of the top 100 chain companies increased by 48% over the previous year, which was five times the national total retail sales growth rate of 10%, which fully demonstrated the role of chain operations in expanding domestic demand, important role in stimulating economic growth. It is expected that in the next few years, the market share of national supermarket chains will exceed that of the traditional department store industry.
Summarizing the development trends of the domestic chain retail industry, it shows the characteristics of industrial scale, diversified business formats, and refined management.
When it comes to the scale of domestic industries, the most outstanding one is Shanghai Lianhua, which won this year's "double crown" in the chain industry and retail industry. According to statistics at the end of last year, Lianhua Supermarket has 1,225 stores, with total sales of 14 billion yuan. This kind of development scale and speed is difficult for any domestic chain enterprise to match.
The reason for the continuous expansion of the scale of chain enterprises is that on the one hand, domestic chain retail enterprises have initially mastered the management skills of chain operations and entered a normal stage of development; on the other hand, the time for China's opening up of the retail industry It’s getting closer. In August last year, officials announced that China’s retail industry would gradually open up to the outside world in one year. In other words, our retail companies still have a year of preparation period. Therefore, many domestic chain companies are unwilling to give up their markets to others, and have launched large-scale "enclosure movements" in the domestic market, taking the lead in occupying various markets. The main commercial areas of big cities.
However, when it comes to whether the large-scale expansion of chain retail companies will be successful. Many people will say that "the key to the success of chain operations comes from economies of scale." The key to economies of scale lies in the size of the enterprise. Seems reasonable? However, it can be seen from the development of some world-renowned retail companies that the essence of chain operation does not lie in this. The reason for the rapid development of supermarket chains is not because of economies of scale. Just a few years ago, there was a famous saying in the Korean economic circle, "Malaysia will never die." This means that the larger the scale of an enterprise, the more scale returns it can obtain. In competition, China and Vietnam can remain invincible. Under the guidance of this idea, Korean companies have experienced "octopus-like arms" expansion in waves. The most typical example is the Daewoo Group's expansion rate in the period after 1993, which reached an expansion rate of one company every three days. Its business scope covers automobiles, heavy industry, construction, electronics and other fields. In 1997, its total sales revenue ranked 18th among the world's top 100 companies. However, even such a super giant that was prosperous for a while actually fell into operating difficulties under the impact of the Asian financial crisis and was unable to extricate itself. The core enterprise Daewoo Motors filed for bankruptcy, and the former giant ship fell apart.
my country's domestic "commercial aircraft carrier" - Zhengzhou Asia has also been stranded for a long time, and after two auctions in August this year, it was still "unapplauded".
The decline of Daewoo and the fall of Asia has shattered the myth of "Malaysia is immortal" and has also sounded the alarm for some companies that are busy building group giants. The expansion of an enterprise's production scale will bring many benefits to the enterprise: for example, it can carry out a more detailed division of labor and save more costs; the expansion of its business scope will also help stabilize demand fluctuations and enhance its ability to withstand risks. At this time, the increase in production factors will bring about a greater proportion of the increase in output levels. This is what is called economies of scale in economics. However, the philosophical theory of dialectical materialism tells us that there is always a certain degree of development of things. Beyond this degree, things will undergo qualitative changes. When the scale of production and operation exceeds a certain point, "big business diseases" such as coordination difficulties, weakened incentives, poor information or even distortion will occur within the enterprise, causing the enterprise to lose its vitality. At this time, it will move from economies of scale to diseconomies of scale, and the factors of production will An increase in inputs results in a smaller proportional increase in the level of output. It can be seen that economic scale does not equal economies of scale.
On the other hand, the store formats developed by the chain retail industry also show diversified characteristics, including convenience stores, warehouse supermarkets, discount stores, specialty stores, and home centers, etc., showing a The state of "a hundred flowers bloom, a hundred flowers bloom".
At the same time, major chain retail companies across the country are also undergoing rapid geometric development. Just as many large companies continue to expand their spheres of influence, managers are concerned about their stores. We also pay more attention to daily operations and management. Standardized operations, implementation of standardized manuals, and deep mining of profits are increasingly valued by various retail industries, and the trend of learning from peers in the world's retail industry is also increasing.
Not long ago, there was a "McKinsey" prediction: In the next 3 to 5 years, 60% of the retail market in China's retail industry will be controlled by 3 to 5 world-class retail giants, and 30% of the market will be controlled by 3 to 5 world-class retail giants. National retail giants control the market, while the remaining less than 10% of the market is in the hands of regional retail giants.
So, how can you establish a business model that suits your business?
First of all, what should be noted is to “select the business format with both eyes open and position according to local conditions.” When it comes to the retail industry, there are many formats. Since the development of the retail industry, some inherent models have been formed. The choice of formats requires flexible thinking and accurate business positioning. If your business is not successful in the supermarket industry, you can consider a convenience store model or a specialty store.
There is a theory in retailing called "ACCORDION THEORY", which is a cyclical theory about the evolution of retailers. What this means is that we can use the depth and breadth of product categories to describe changes in the retail industry. It believes that the types of merchandise in the retailer's inventory cycle from large depth/small width to small depth/large width, and then to large depth/small width. The specific model of its development is reflected in the five stages of the development sequence of the retail industry in the United States and other Western developed countries: 1. The grocery store era (the era of integration, small depth/large width) 2. Professional shop era (the era of specialization, large depth/small width) 3. Department store era (the era of integration, small depth/large width) 4. Convenience store era (the era of specialization, large depth/small width) 5. The commercial street era (the era of integration, small depth/large width).
The choice of retail format is a prerequisite for the success of an enterprise. According to the company's own advantages, it can exploit its strengths and avoid its weaknesses and develop its own characteristic operations. Only such companies will be competitive and occupy the market. At present, with the continuous improvement of people's living standards, people are paying more and more attention to the taste of life and the promotion of personality. At the same time, in terms of shopping orientation, people are beginning to pay attention to more professional services. As a result, the popularity of specialty stores has slowly developed, which exactly reflects the circulation theory of retailing.
In the past 20 years, the foreign retail industry has produced: 1. CATEGORY SPECIALIST is a discount store that covers an area of ??8,000 square feet and sells a small but wide variety of products. Such as: Toys "R" Us toy store, etc. 2. HOME-IMPROVEMENT is a type of specialty store that combines traditional hardware stores and lumber storage yards. Such as HOME DEPOT in the United States. 3. A warehouse club (WAREHOUSE CLUB) is a general merchandise retailer that provides a limited variety of goods to customers and small businesses at low prices and without service. Such as: Sam's Club. 4. Discount retailers (OFF-PRICE RETAILERS) sell textiles that are fashionable but not always of the same brand at low prices. Such as: MARSHALL. 5. A catalog store (CATALOG SHOWROOM) refers to a retailer whose showroom is adjacent to a futures warehouse.
Some of the above-mentioned business models have been used by merchants in China. For example, the home building materials market in Tianjin Home World is a store modeled on the American HONE DEPOT, which has slowly gained ground in China. Keep your footing. Suning and Beijing Gome mainly focus on operating home appliances, and they are also very impressive.
There is a typical case in formulating business strategies based on local conditions: Shenzhen Wanjia Department Store has re-understood GMS (GENERAL MERCHANDISE STROE) based on the combination of local and foreign styles, and a blend of more This is how the domestic GMS with Chinese elements was born. In terms of positioning the target customer group, we focus on “serving local residents”. By organically combining modern supermarkets with traditional department stores, "supermarkets attract people and department stores create profits." Wanjia, which has annual sales of 1.6 billion yuan, has achieved profits of more than 60 million yuan, even more than Lianhua, which ranks among the top 100 retail companies in the country. Supermarkets are even higher. Wanjia also allows supermarkets to enter both residential areas and central business areas. In terms of business format innovation, it is not only a combination of department stores and supermarkets, but also an intermediate between GMS and community shopping malls (SHOPPING MALL). Being free between GMS and SHOPPING MALL allows Wanjia to expand its radiation power in the business district and become a "wide-area store" that can reach multiple communities.
In order to implement dislocation management, Wanjia selectively enlarged the width and depth of the product structure, making the store's product system significantly better than that of foreign-funded large supermarkets. At the same time, Wanjia's product price range is relatively wide and the price line is relatively deep, which enables a wider range of target customers. This makes Wanjia completely different from the low-price image of general foreign-funded supermarkets. The product variety is complete and the quality is high, making it a This is a trump card for Wanjia to compete with foreign companies. By widening the price band, we will provide customers with greater choice space, and at the same time deal with the threat that professional stores and specialty stores with very deep product lines will pose to large comprehensive supermarkets in the future.
Secondly, it is "intensive cultivation and management, and one step ahead in setting up the system." Today's commercial enterprises generate a large amount of information in their daily operations. This information contains rich business skills and market rules. How to effectively utilize this precious resource is the most urgent desire of every retail enterprise. Thus, Business BI (Business Intelligent Business Intelligence Analysis System) was born. BI is a new technology that uses data warehouse, online analysis and data mining technology to process and analyze data. It can be used not only for the analysis of product relationships, but also for store sales analysis, customer analysis, and supplier and store employee management analysis. This will make store management more effective and enforceable. Internationally, Wal-Mart started building data warehouses in 1981. In 1993, the American department store (SEARS) laid off 50,000 employees due to losses and closed more than 300 stores. In 1994, it began to introduce BI. Its turnover increased by more than 20% that year and the following year, and its inventory decreased by 60%.
Facts have proved that due to its low gross profit, chain operations require more sophisticated store management and more accurate calculation of system data, so stores have increasingly higher requirements for computer systems! If you want your store to be in a leading position in the industry, you must first make your software system "one step ahead."
The third aspect is to “look through the fog to see procurement.” When foreign-funded hypermarkets first entered China, in order to establish goodwill and win the support of Chinese suppliers, they did use buyout procurement to impact the domestic market. The consignment system has been popular for a long time. But after a period of time, after firmly controlling Chinese suppliers, foreign businessmen began to follow the local customs and adjusted their original procurement methods. For example, Wal-Mart's "Instructions for Suppliers" implemented in 2000 clearly stipulates that from January 31, 2000, all payment periods will be doubled, and the minimum payment period shall not be shorter than 60 days. At the same time, suppliers began to be required to sign a consignment contract. If they did not sign, it was necessary to indicate that the goods were allowed to be returned and exchanged, and the requirements for suppliers became increasingly strict. ——Implement the manufacturer joint sales system under the central procurement system to achieve low-cost operations and high gross profit returns. Therefore, chain large-scale comprehensive supermarkets should not resort to the two extremes of leasing out counters or buying out all of their stores. Instead, they should seek cooperation with manufacturers and use discounts and other methods to reduce operating costs. I suggest that you must act within your capabilities when it comes to purchasing and payment methods: you can use the buyout method for products that you are completely sure about, but do not sell easily for products that you are not sure about, have a long sales cycle, and are seasonal.
The fourth is the "use-it-all" approach to logistics. As a word imported from abroad, the term "logistics" has only been developed in China for a short period of time, and we still need to learn a lot from our foreign counterparts. With the rapid development of chain commerce, chain enterprises have increasingly higher requirements for logistics levels. Technologies such as rapid response, zero inventory technology, and supply chain management are continuously introduced into the country. The level of logistics and distribution has become a key criterion for measuring the management modernization level of a chain enterprise. If you want to integrate with the world, you must have a supporting logistics system. "Using it" in logistics is the only way to keep up with the international level as much as possible.
Fifth, "Serve wholeheartedly, and always have manpower ready for trouble-free work." The service level of the business system has always been a problem in domestic business operations. However, with the rapid expansion of chain businesses, the quality of personnel varies, which may lead to instability in service level and quality. The key to solving this problem lies in establishing a good human resources training system. Judging from Wal-Mart's development in the past 40 years, the business format and scale are changing, but the "people-oriented" business philosophy has never changed. Currently, Wal-Mart has placed the important value of human resources at the forefront of corporate strategic development. The human resources of the chain retail industry are the source of power for the development of the chain retail industry and cannot be ignored. Otherwise, the development of the chain retail industry will be a river without a source and a building without a foundation.
After talking so much about how to establish a management model for the chain retail industry, if you want to establish your own chain enterprise model, you actually need managers to have the mentality to engage in the chain retail industry. This mentality is A young mentality originating from a rising industry, a hard-working business style and an insatiable learning heart.
Only in this way, I believe you will build a strong chain enterprise