According to the monitoring of the win business network, in 2017, the number of supermarket closed stores increased significantly. 7 supermarket brands such as WAL-MART, Carrefour and Yong Wang closed 45 stores, up 28.57% over the same period. In the first quarter of 2018, when the end of the first quarter ended, rumors of Carrefour Bengbu Wanda shop were about to close. The store was its last store in Bengbu. Prior to that, Carrefour in January 12th, in March 8th closed Suining Shehong store and Chengdu Guanghua store. What is the hidden danger of Carrefour in China?
Slow tune Carrefour is in the middle of a middle age crisis
The reason why Carrefour was in the middle of this middle age crisis was that it was too late to realize that it was going to change.
First, the supply chain system is created slowly. In the early years, Carrefour had no logistics center and inventory model, which made it more and more competitive with its competitors. In 2014, WAL-MART had 20 logistics and distribution centers in China, and Carrefour started to move in 2015 and established Kunshan, East China, and West China. Such as the logistics center, but the number is only a few.
Carrefour first adopted a direct supplier model, which could save a lot of money for the enterprise, but it affected the supply speed and aggravated the supplier’s burden. In the market competition environment of the market, the supplier will seek other party because of the overburden. The slow supply speed affects the user’s shopping experience, and then affects the sales, especially the fresh products, which makes Carrefour’s competitiveness weaker.
Second, the retail online test is slow. The rise of the era of the rise of the electricity business continues to impact the traditional line of industry, especially the first second line of the city’s real stores have been the biggest shock, the entity stores are unable to restrain the online business in succession in order to save the market decadent reality. At the beginning of 2014, Carrefour had taken the lead in trying to try O2O, on the line of “flying cattle net”, and Carrefour went online a year later on “Carrefour online business city”.
The traditional retailers such as Carrefour and WAL-MART have carried out online business in response to the development of the times in response to the development of the era, but they are not aware of the business operation, and have not actively carried out the online business in the case of cost considerations and risks, which eventually leads to the development of the business of electric business as a chicken ribs or hard work. It’s hard to struggle.
Third, new retail innovation is slow. As the major traditional retailers have failed in the electricity market, Ma Yun has called out the slogan of the new retail market, further encroached on the market share under the line, based on the quality logistics service, combined the online model of the natural missing scene experience with the offline operation, and swept the retail market again. Ali new retail, Jingdong unbounded retail, Suning intelligent retail, debut.
Carrefour is still expanding the city’s online shopping mall, but it has never opened the line with the online ecology until the 2018 New Year’s Eve opened the “Fisherman’s kitchen” and “very fresh workshop” in 2 stores in Shenyang and Wuhan. However, this “catering + retail” format has been tried by Yonghui supermarket, RT mart, Wuming and other traditional retailers.
Carrefour’s habit of trying a new model in a new mode has advantages and disadvantages. On the one hand, the sizeable forerunner is good or bad for the water test, and it can indirectly understand the effect of the new model, and then reduce some of the loss caused by the bad effect. On the other hand, the Ruo Shixin model market repercussions will lag behind and want to catch up with the opponent or to go beyond the opponent. It will become more difficult.
Former wolves, tigers and Carrefour in China
In addition to the slow down of Carrefour’s slow pace, the competition in the retail market is also fierce.
First of all, in terms of traditional hypermarkets, WAL-MART and big RFA have gradually left Carrefour behind. In 1995 Carrefour entered the Chinese market and took the first place. WAL-MART entered the market one year later, but later, it came up. In 2010, the sales of WAL-MART surpassed Carrefour, the number of stores now more than 400, and Carrefour nearly 100.
In addition to Carrefour’s great embellish, the number of stores is also more than Carrefour, online retail and other new modes of exploration are more active than Carrefour, and the market rate is gradually surpassing Carrefour. Kay consumer index data showed that in the third quarter of 2017, the share of major retailers in China was 6.9%, and Carrefour was only 3.3%.
Secondly, in terms of online retailing, it faces strong pressure from Alibaba and Jingdong. In Tmall double eleven and other e-commerce Festival constantly refresh the sales record, online flow tends to saturate, Ali, Jingdong and other e-commerce giants side with the retail market share, side of the tentacles to the offline market, the active distribution of the entity retail format.
In 2014, Ali 5 billion 400 million yuan into Yintai department stores, in 2015 Jingdong 4 billion 300 million yuan into Yonghui supermarket, in 2016 Ali shares in Sanjiang shopping, the same year Jingdong and WAL-MART reached cooperation, reburning the No. 1 store business city, and the Sam store to the online, 2017 Ali holding Yintai, shares Gao Xin retail, fresh harvest to easy fruit harvest Buy 18% of Lianhua supermarket, while Jingdong increases cooperation with WAL-MART. Behind the refurbishment of the retail concept is the confident portrayal of the success of the retail layout of the e-commerce giants, while Carrefour has not made a success in the test of the online mall, and the strategy of online and offline intermodal transport is naturally difficult to result in.
Besides, Carrefour’s situation in the global retail market is also not optimistic. DDT integrated the 2016 fiscal year (June 2017) to open data from major retailers around the world. The annual global retailer strength report of 2018 showed that WAL-MART was still the number one, while Carrefour had fallen from seventh to ninth from now on. Visible Carrefour’s market pressure is also global.
One side is that the innovation of operation mode is always slow, and facing the external pressure of WAL-MART, big run hair, Yonghui and other traditional stores, as well as the electric business giant of Ali and Jingdong, the phenomenon of Carrefour’s falling off in the retail market has become more and more obvious.
An accelerated business or a good recipe for Carrefour
If Carrefour has no advantage, it will be a reality to sell Chinese business if it continues to operate retail business slowly. Carrefour needs to remedy the situation if it wants to save the situation.
First, keep up with the trend of the retail era and do not wait and see conservatism to deal with new retail formats. When the momentum of e-commerce has become more violent, WAL-MART took the lead in testing water online supermarket, bought No. 1 store, but did not become famous, but the cooperation with the Jingdong made the No. 1 store reignite the vitality, and the cooperation between WAL-MART and Jingdong was also more smooth.
In January 2017, Yonghui supermarket, which has more than ten years of retail sales, launched a new “super species” in January 2017, and realized the magnificent turn of the populated people’s livelihood supermarket, and was also in the front of Ali’s “box horse fresh”. This is the success of the first trial case, the pioneers touch the wall the most painful, but also the first taste of sweet, everything has advantages and disadvantages, and the overall observation and after the Carrefour natural easy to fall.
Not long ago, the performance pressure to increase unabated and slow half of the Carrefour finally hand in hand to Tencent, Yonghui, Tencent will invest in shares, deepen business cooperation, this is after the WAL-MART hand in hand, Jingdong embraced Ali and a traditional retailer and the Internet giant’s equity cooperation. With the input of capital and technology, Carrefour should speed up the pace of learning to make use of Yonghui’s complete fresh operation mode, integrate the supply chain, perfect the transport service, and make use of the technology power of the Tencent to improve the business integration under the line and line.
Second, to understand consumers’ real needs and win consumers’ trust. In the case of consumers, the most important thing is quality, whether it is the quality of the goods itself or the quality of service, only the quality of the good can let the consumer feel “buy and buy”, for the marketing format is more so, the food kind of heavy safety, non food heavy service.
There were 8 batches of unqualified samples of 436 batch of food samples collected by the State Administration of food and drug administration, involving 5 food enterprises in Shanghai, including WAL-MART, Auchan, No. 1, and Carrefour. Earlier, more media broke out of a Carrefour shop in Harbin selling octagonal mixed with 10 horns, 12 horns and other false octagonal, the current problem octagonal has been all shelves. The impact of word of mouth on enterprises is quite large. The more brand business, the better we should maintain our good reputation in the minds of consumers.
Consumer preferences may be ever-changing and even elusive, but as long as the quality of goods, service quality, and consumer trust are won, the recommended goods are not too catered to, and the credit consumers will also pay for it. Enterprises can protect consumers in quality maintenance, even if they do more, consumers will feel warmer. Carrefour, for example, is also actively developing the area chain technology research and development of food traceability, although it is still behind the WAL-MART and so on; 3.15 on the same day Carrefour to provide on-site detection of pesticide residues in fruit and vegetable products.
Third, the interests balance, mutual benefit and win-win, and burden reduction for suppliers. Carrefour, WAL-MART, big run hair and other traditional large market profit model of the same, is generally charged a variety of fees, such as barcode fees, festival fees, festival fees, stacks, DM fees, or to rent, rent, management of private brands, and so on. On the one hand, many retail suppliers have become more and more difficult to sell and pay all kinds of costs, while Carrefour, on the other hand, pushed the supply service to suppliers to make it more unbearable.
Therefore, Carrefour’s original operation mode must be reformed, not only to win the trust of the consumers but also to ensure the mutual benefit and mutual benefit of the big and small merchants. For example, we should increase or decrease all kinds of expenses according to the situation of merchants, so as to provide effective marketing strategies for merchants and cooperate directly with upstream producers. Prior to this, Haikou Carrefour in each family store with 0.70 yuan per discount price to help Hainan Oriental City sell nearly 100 thousand acres of unsalable sweet corn.
From this point of view, Carrefour’s slow pace has gradually lost its inherent advantages, and has been overtaken by more and more competitors over time. Moreover, the decline in performance has made Carrefour worse and worse. If Carrefour walking on thin ice is allowed to let himself go, the retail trade myth will be gone. Fortunately, Carrefour still has crisis awareness to take action to improve the status quo. As long as it changes the slow pace of the watching nature and the far sights, Carrefour will still be able to return to its former glory.
Wen / Liu Kuang public number: liukuang110