Large Department Stores Encounter Tough Times In China

< p > foreign media said that the large department store "a href=" //www.sjfzxm.com/news/index_c.asp "retail > /a" store is now facing a difficult period in China.

The three biggest retailers in the world, WAL-MART, Tesco and Carrefour, have been blocked in China, resulting in their own targets being reduced.

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According to the US report, Wal-Mart Store Inc said in December that the company will close several stores in China. < p >

Earlier this year, Tesco pferred 131 stores and shopping centers in China to a joint venture with state-owned enterprises in China.

Carrefour has also closed many stores. It is reported that the company is researching and selling its business in mainland China and Taiwan.

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Less than P, more than a decade ago, the comprehensive supermarket, a large department store that combines supermarkets with department stores, appeared for the first time in big cities in China.

Businesses like WAL-MART naturally want to get a slice of it.

This is a fast-growing sector - the sales of comprehensive supermarkets in China have increased from about 18 billion yuan in 2000 to 445 billion yuan in 2010.

It is estimated that by 2015, the sales volume of supermarkets will reach 1 trillion yuan.

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< p > however, the slow pace of development and fierce competition make it difficult for international retailers to get "a href=" //www.sjfzxm.com/news/index_cj.asp "less than /a", even though China's growing middle class will spend more money on consumption in the future.

Experts say many foreign retailers do not understand the behavioral differences between Chinese consumers and Western consumers.

From the frequency of supermarket visits to the categories of goods purchased, Chinese consumers are totally different from Western consumers in every aspect, regardless of the size of the store.

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"To win, participants need to understand the Chinese market and then understand how to operate to meet the needs of the Chinese market," said Daniel Hu of McKinsey Co, P.

Chinese consumers are used to going out to buy fresh food every day.

Just because they can now shop in larger space does not mean that they will change their habits. "

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< p > it is reported that Gao Xin retail Co., Ltd., a joint venture between Taiwan Rd. and France's Auchan group, has successfully utilized its knowledge of the Chinese market and has become the main large department store in mainland China.

Gao Xin's shop is similar to WAL-MART on the surface, but the interior decoration and feel are more like the local street market.

The supermarket chain employs local people as managers and offers discounts based on regional tastes.

Daniel Hu said that Chinese consumers like special goods.

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Gao Xin P has smaller stores than its competitors, which reduces costs.

Chinese housing is often smaller than that of the west, so even if consumers want to buy in large quantities, it is impossible because they have no place to store what they buy.

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< p > experts say stores should not place too many shelves. Instead, they should focus on the management of stock levels and ensure that their distribution is suitable for the local market.

This approach has made Gao Xin a good profit.

The company's third quarter profit surged by 72%, and it is opening new stores.

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< p > reported that other competitors are catching up and many companies are changing their strategy.

For example, < a href= "//www.sjfzxm.com" > WAL-MART < /a > is trying to benefit from China's online shopping craze.

The US retailer bought a majority stake in China online store No. 1 in 2012.

The deal has enabled WAL-MART to get the 24 million registered users of shop No. 1, and may make it more aware of the Chinese market.

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