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Domestic Supermarkets Go To The Countryside And Stay Away From Foreign Supermarkets

2011/1/22 17:31:00 147

Yang Jun, the deputy director of the Zhejiang Provincial People's Congress, the research fellow of the China Business Policy Research Association and the chairman of the Zhejiang Hualian Commercial Building Co., Ltd., in an interview with the four session of the eleven National People's Congress of Zhejiang, said in an interview with reporters today that the market share of 90% of the supermarkets in Shanghai, Hangzhou and other big cities in China has been controlled by foreign supermarkets. The domestic supermarket has limited living space and has been forced to "go up to the mountains and go to the countryside."

Chinese capital

Supermarket

Tentacles are not interested in local extension.

"In developed areas, 90% of the large supermarkets are foreign capital, and there is little room for Chinese supermarkets to survive."

When chatting with reporters about the topic of supermarket, Yang Jun, who is the chief executive of a Chinese supermarket and who is also a researcher of the China Business Policy Research Association, began to sigh bitterness.

He said that after China's accession to the WTO, when the gates opened, foreign supermarkets flooded in, and the "little seedlings growing in the rice fields" of China's retail industry were almost all washed away.

According to the statistics provided by China Chain Store Association, the market share of foreign supermarkets in China is approaching 47%.

A staff member of the Information Department of the Association told reporters that in the big city of Shanghai, foreign supermarkets have accounted for the overwhelming majority of the market share.

Under the pressure of foreign capital cities, Chinese supermarkets are forced to shift.

foreign capital

When we get to big cities, we enter small cities. When foreign capital goes to small cities, we enter villages and towns. Foreign capital goes to towns and villages, so we can only go to the villages.

This only preserves a small space for us to live.

If they want to go down again, we can only surrender and rent our shop.

Yang Jun introduced Chinese supermarket's experience in competition with foreign supermarkets in recent years.

"The only thing we can do now is to extend our tentacles to places that we are not interested in."

The chairman of Ningbo gabion logistics company today, he Yongjun, told reporters today that his store has already covered every township under Ningbo, and the village can see the logo of Gaby supermarket.

As for why to abandon the city market, he Yongjun said, "competition is too fierce."

Chinese supermarket is not commensurate with social responsibility and policy treatment.

Yang Jun said that compared with foreign supermarkets,

Chinese supermarket

Although confronted with foreign supermarkets' pressing efforts, most of China's domestic social responsibilities have been carried out.

"Like a snowy day, we have to rely on our staff to pick up the shoulders of grain, oil and vegetable people. If you want to try WAL-MART, Metro and Carrefour, which one of them is willing to do it? It is no exaggeration to say that in some remote mountainous areas, our shop is often the hope of the local people."

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Zhang Yuping, director of Marketing Management Office of Ningbo Trade Bureau, told reporters that in 2008, when Ningbo was exposed to freezing rain and snow, it was thanks to some local private supermarkets who sent workers to the village to get their necessities sent to the village.

Yang Jun felt very unfair about some policies of the local government.

"For example, the most obvious is that in some places, for the purpose of image projects, foreign supermarkets are very welcome. Foreign retailers go to a city. They basically get the land in white or low price. The rent free period will be several years, and the tax revenue will be waiver. For the introduction of our enterprises, they will give us land at the price of real estate."

Yang Jun also said that some people have done statistics. In some cities, the business tax of the Chinese supermarkets and the labor force to resettlement is far more than that of foreign supermarkets in the business circle within ten kilometers around the opening place of foreign capital.

There is still hope in China's local supermarkets.

"There are only three outlets for Chinese funded supermarkets in the future."

Yang Jun said.

Yang Jun believes that Chinese supermarkets in various places should be led by the government to carry out business together, or that Chinese supermarkets should shift their tentacles to places that are not interested.

"Otherwise, we can only graft with foreign supermarkets and voluntarily give up the market."

Compared with the pure retail industry, Yang Jun is more optimistic about the future of Chinese enterprises in the department store industry.

He believes that department stores can not simply copy and clone, for example, the department store in Beijing is different from Ningbo, Ningbo is different from Hangzhou, so foreign department stores in China is very difficult to make a difference.

This has left much room for China's local department stores, so Chinese entrepreneurs should constantly develop department stores.