China'S Retail Industry Is Spanforming To "Full Retail" Mode

PWC pointed out that although the growth of China's retail industry overall slowed down in the first three quarters of 2014, the traditional large retail enterprises lacked vitality, but with the rising consumer confidence index, the fourth quarter was the peak season for traditional consumption. The total retail sales in the fourth quarter were expected to increase, and the retail industry entered a stage of sound development. PWC recommends that retailers improve the whole retail mode and lay a solid foundation for long-term growth.

Wang Xiao, managing partner of PWC's China retail and consumer goods industry, said: "China's consumer market is undergoing spanformation, and consumers have shifted from preference to price oriented consumption to more quality based consumption. The rapid rise of e-commerce and social media has prompted the trend of consumers' consumption mode to be intelligent, interconnected and autonomous. Consumers can take the initiative to choose different shopping channels according to their needs. These changes are profoundly changing the retail industry in China, and consumer oriented and full channel operation is becoming the main direction of the spanformation of retail enterprises.

PWC's report on "achieving full retail - consumer expectations and promoting the development of future retail business models" shows that Chinese consumers are leading the world in online shopping. 1/7 of consumers are shopping online every day, and the proportion of online shopping is more than 60% per week, while the corresponding figures of the whole ball are only 5% and 21% respectively.

The report shows that Chinese consumers are using multiple devices for shopping, which requires consistency in shopping experience in various channels. Consumer It is expected that there will be a "full retail" approach that can bring digital experience to the real world and provide a more integrated and personalized one. experience 。

　　 PWC Wang Ying, a partner in China's retail and consumer goods industry, said: "fully tap the potential of retail channels, not just to launch a product catalog or copy a business product online, waiting for customers to come to the door. It is particularly important for consumers to play a full role in data such as online browsing and consumption habits, so that data can be integrated with the overall strategy of the company to mobilize the resources of various departments of the company. Sustainable growth requires retail companies to integrate closely all channels. "

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In the view of Huang Wenjie, chairman of Chu Rui business, WAL-MART is developing and holding property strategy in China, aiming at reducing risks and seeking new growth points.

"Over the years, the market value of the shopping mall industry is generally rising. If the property is owned by itself, it is not only the daily retail business, but also the property appreciation itself will bring profits to them. If the property is added through its own business, it is equivalent to their business getting double income, and it also reduces the risk that the landlord raises or does not rent to them, which avoids risks and brings double benefits -- operating income and value-added income.

However, Huang Wenjie also pointed out to the times weekly reporter that the strategic direction of holding the property is, "what I know is also a subsidiary of Carrefour and Carrefour. In fact, they have such a trend in recent years that they are interested in holding property."

In fact, as early as 2012, the survey of China Chain Store Association showed that more than half of the domestic retail businesses were involved in commercial real estate, and the practice of subsidizing the retail industry has become a common practice. In 2012, Yurun Group, which has many sectors of food, department stores and hotels, announced the completion of the 50 commercial complexes in 2015. In 2013, Hongxing commerce, the Hongxing Midea Group, which entered commercial real estate, said it would complete the construction of 100 shopping centers in Aegean Sea in 2020. The IKEA Shopping Center Group invested 10 billion yuan to develop shopping centers in Beijing, Wuxi and Wuhan.

At the same time, Huang Wenjie also predicted that although the construction of large-scale retail facilities in China is saturated in certain areas and parts, especially in some core traditional business circles, WAL-MART's "community shopping center" will enter a rapid development period in the next few years.

"In the past 20 years, shopping centers are mainly concentrated in the core area of the city, more of an urban shopping center, which is also a focus of past development. But over the past 10 years, real estate has developed, and the pattern of every city has changed. There has been a trend of flat development. Flat means that there are more fine areas and more commercial markets. In fact, a city can not carry a lot of city shopping centers, but the community shopping centers only aim at the passenger flow in some areas. 100 thousand or 200 thousand of the customers can support the community type living space. Generally speaking, a population of five million and six thousand people can support an urban shopping mall, but a community shopping center may be able to support 50 thousand people. Huang Wenjie analysis.

However, this format is not exclusive innovation by WAL-MART. In fact, many domestic developers such as Vanke, Shi Mao, flower calendar, and commercial real estate developers, such as Baolong real estate, have all been in the direction of "community oriented business".

As a retailer lacking in development and operation, WAL-MART has yet to verify whether the commercial real estate in China can really bring about its growth.

"WAL-MART's property holdings in China can't change the essence. The essence of business is not whether you hold a shopping center or not, but whether it is popular or quick turnover. Is the price appropriate? So holding a property may be helpful to its short-term cost, but it will not change the actual situation. " The retail industry analysts expressed their cautious views.