Traditional Retail Mode Must Change

As a retail boss, WAL-MART and Carrefour are closing down, not just the impact of the electricity supplier, because the quality of goods, especially the price, is the key to decide whether to stay or stay.

In an interview with the media, Huang Wenjie said that at the supplier level, the scale of the original hypermarket was not as attractive as that of cash settlement and other quicker settlement methods. They preferred to choose those enterprises that could give quick settlement or direct cash payment, while the traditional enterprises such as foreign capital stores could settle accounts through a certain account.

The new settlement brings retailers the advantage of commodity prices, and the emergence of new retailers.

According to the news received by reporters from WAL-MART China, following the opening of 10 new stores in the last month of 2015, in January 2016, WAL-MART China opened 3 new stores in Inner Mongolia Ordos, Hubei Xianning and Yunnan Yiliang.

So far, WAL-MART China has opened 13 stores in two months.

And it is worth noting that more than 90% of these new stores are located in new cities.

WAL-MART believes that the market potential of China's emerging cities is promising. With its own mature management team, high-quality goods and special services, WAL-MART's strategic layout in the two or three tier cities will enter the "fast lane".

Netizens "Lao tie" wrote that the agent system is traditional.

The most commonly used mode of sale is that a product has to go through layers of agents from the manufacturer to the user, and finally to the terminal sales shop. It is not surprising that the price of the product has increased several times in this link.

Therefore, when the electricity supplier surges, the traditional enterprises are at a loss as to the "low price" of the electricity supplier.

In addition, the industry believes that the format of hypermarket is no longer favored by consumers.

The size of the hypermarket format is too large for consumers to go for a long time to find the goods they need, which is not in line with the new consumption trend.

Nelson recently released the 2016 China fast moving consumer goods market trend forecast report that consumers pay more attention to the convenience of channels than ever before, so they spend more in small retail stores and chain convenience stores, while reducing the patronage of hypermarkets and supermarkets.

Data show that in 2015, chain convenience stores this channel for fast.

The contribution of sales growth reached about 9%.

In convenience store channels, household cleaning products grew by 11%, but 4% in supermarkets. Food and instant noodles grew more than 6% in convenience stores, but sales in supermarkets dropped by nearly 12%.

In terms of retail channels, Nelson's report predicts that the high demand for convenience will continue, and that their consumption will further shift from large stores such as hypermarkets to relatively small retail outlets.

This trend, even in the category of household products, is expected to increase by 9.8 percentage points in 2016.

"Manufacturers want to win the market in 2016 and achieve leapfrog development, and accurately understand China's retail development prospects to respond more effectively to consumer demand, will be a top priority."

The Nelson report says so.