Carrefour Zero Supply Contradiction Exposed Rules &Nbsp; 40% Sales For Stores.

From Kangshifu to COFCO and then to 93 oil, Carrefour has recently been trapped in the vortex of zero supply.

Why is Carrefour always?

Carrefour was once regarded as a "model" of a large supermarket as a foreign retailer who has been successfully operating in China for 15 years.

But frequent supplier conflicts also exposed the hidden rules behind Carrefour's 15 years of bright operation.

"Carrefour ignored."

Supply Carrefour: don't expect to make money.

"Our gross margins are generally controlled at 25 points (percentage points, the same below), including 2 points for wages, 5 points for distribution and warehousing, and 3 points for taxes.

But Carrefour takes 20.5 points from our hands.

For Carrefour, we lose 65 thousand yuan for every 1 million yuan we sell.

Beijing top business center manager Zhang Guomin told reporters.

Beijing vertex business center is one of Carrefour's Chinese suppliers, mainly supplying frozen foods.

Zhang Guomin said that many suppliers are struggling to supply Carrefour, the main reason is to make the corporate image. "Now which company wants to be an enterprise's product distributor, it is necessary to go to Carrefour to see if there is any goods, and also how the sales volume of goods is."

According to Zhang Guomin, the peak has been since November 2009.

Zhang Yiping, deputy general manager of Beijing goldfish Polytron Technologies Inc, told the "daily economic news" reporter: "at the beginning, our products face point is 22 points, although it is lower than the cost price of 10%~15%, but it still can be done."

But later, Carrefour continued to increase the deduction point to 40 points. If we want to renew the contract in 2009, if we want to reach 50 or even 60 points, we will not be able to do it and withdraw from Carrefour.

It is not only the increase of the deduction point, "Carrefour always gives us a low price promotion."

Zhang Yiping said that the selling price of goldfish detergent was 1.65 yuan in Carrefour, while the selling price in other markets was 3.4 yuan or 3.5 yuan.

"Carrefour has 7 stores in Beijing, and our sales volume is three to four million a year.

After controlling prices, Carrefour stores also rose to more than a dozen stores, with annual sales of only about 1000000.

Before leaving Carrefour in 2009, goldfish lost hundreds of thousands of dollars a year.

"We are state-owned enterprises, and the operating expenses are generally controlled around 12%, but Carrefour's demand is 30% to 40%. When we invoice, we do not understand why we need to open so much, and the Inland Revenue Department does not agree that we sell at below cost."

Insiders: 15%~20% costs accounted for more reasonable {page_break}

Yao Wenhua, deputy director of the Organizing Committee for the zero supply mediation platform of the China Federation of Commerce, told the daily economic news reporter that there are dozens of fees in addition to the normal selling points.

"In fact, there are dozens of things that are not important. What is important is that these costs add up to even more than 40% of the total sales.

I think (this part of the cost) 15%~20% is a reasonable level. "

Yao Wenhua introduced that the supermarket cost includes two yuan, one is the front desk cost, that is, the deduction point stipulated in the contract; the other is the background cost, which is not stipulated in the contract, or is simply stipulated in the actual implementation cost.

A form obtained from an authoritative person shows that there are 24 main items of charge for such a supermarket as Carrefour, such as account opening fee, new product entrance fee, new shop opening fee, old shop refurbishment fee, festival fee, annual fee, annual promotion fee, new shop profit making allowance, DM posters fee and stack charge.

According to Zhang Guomin, in the Carrefour supermarket, the barcode fee is the entry fee, which costs 2000 yuan for each store. "Carrefour has 18 stores in Beijing. If you want to enter all of them, you have to pay 36000 yuan to Carrefour.

This is the cost that must be paid. If we don't hand in it, we can't even enter the store. "

In addition, Carrefour's new store starts to charge 10 thousand yuan in sponsorship fees. The renewal of the contract will be paid annually, with an amount of 10 thousand yuan and 1 stores. "If you don't pay this fee, it's not just that the store will not let in, but other stores may also be affected, even if the goods are put off the shelves."

The exhibition fee is a kind of advertising promotion nature charge in Carrefour's shop.

Zhang Guomin said that where Carrefour shops are often seen by customers, they have been developed as promotional sites, and they should charge corresponding fees, especially the annual "51", "eleven", Spring Festival, Dragon Boat Festival, Mid Autumn Festival and other festivals.

The fees include "stack fees" and "terminal fees". "These fees can be done according to the company's positioning and needs.

But the difference between doing and not doing is that sales will vary by two to three times.

Zhang Yiping also told reporters that some items of Carrefour's fees were determined at the time of renewing the contract every year. When the contract was renewed, there were several festivals, what activities to do, what to do several times, and how many posters to make, all of which were clearly stipulated.

"The problem is that Carrefour has signed contracts with many suppliers, such as signing 10 stacks and 10 Posters a year.

When the festival arrives, even if it is not in line, it should be withheld in accordance with the contract that has been fulfilled. "

"If you do not promote sales, Carrefour has the last elimination system, one category of products will be cleaned up in 3 months, and the sales will not be eliminated."

Excessive cost is alleged to be detrimental to the interests of consumers {page_break}

The expense of supermarkets is considered to be ultimately damaging to the interests of consumers.

Yao Wenhua said that the traditional way of profit-making of operators is to earn profits through the sale price difference, but Carrefour's profit is quite different from that of the suppliers.

Zou Beifeng, general manager of Beijing 100 Fuller Food Co., Ltd., vice president of Fujian General Chamber of Commerce in Beijing and President of Zhangzhou chamber of Commerce in Beijing, also believes that some charges of suppliers to Carrefour are unreasonable.

"Supermarket fees have increased from 10% to 15% per year since 2003."

Yao Wenhua said that in order to make up for the losses caused by the increase in supermarket charges, suppliers can take the following measures: first, to raise sales prices; another way is to reduce product quality standards and reduce costs, and the direct result is to damage consumers.

"The price of goods that consumers can get in supermarkets is actually the cost of goods plus the cost of supermarkets."

Zhang Yiping introduced.

The deep reason behind these fees is that in the view of the lawyer of the Shandong Yuen Ding law firm, the company's fees are derived from the headquarters's profit requirements for the stores.

"Originally, Carrefour headquarters had a profit requirement of 4.5% for stores, then increased to 12%, and then increased to 25%.

When stores do not meet the profit requirements of headquarters by normal operation, they can only find ways to find suppliers.

A number of retail insiders say that from the Chinese market, Carrefour's huge demand for capital stems from its rapid expansion in the market.

Zhang Yiping said that Carrefour opened shop slowly before 2007, and the charges for suppliers were not particularly heavy. With Carrefour's expansion in China, the charges for suppliers were more serious than before.

"In view of the fact that the main sticking point of the current zero supply relationship lies in the fees, there are also five ministries and commissions of the Ministry of Commerce, such as the Ministry of Commerce, which do not charge fees for fair trade documents.

Supermarkets should work hard in site selection and operation, and can not be supported by fees, otherwise it will be a very dangerous trend.

Yao Wenhua said, "if a supermarket returns to a profit that does not depend on the cost of the supplier, it will earn a retail profit in the operation, which is a benign zero supply relationship."