Interview With Wang Xianqing, The Boss Of Retail Industry

Changan town of Dongguan, Guangdong, has only three months' opening of the "century Hualian" supermarket owner.

This is in March of this year, Zengcheng Xintang Guangdong "Li and fresh" life supermarket boss owed 20 million debt suddenly "human evaporation" after another boss escape.

Correspondingly, the "closing shop tide" of Guangdong's retail industry has quietly arrived in the first half of this year, including retailers such as Tesco, parkas, Ren Ren Yue, Yonghui supermarket, Shanghai agricultural and industrial and commercial enterprises, and so on, and the retail industry is now involved in the red warning signal.

Since the first half of this year, a number of enterprises have been closed shop phenomenon.

For example, Shenzhen supermarket leading people "happy" this year opened 4 new supermarkets, but closed 3 branches.

There were 24 new stores opened last year, but these 24 new stores are basically in a state of loss.

Yonghui supermarket, which has been regarded as a dark horse by the industry, has closed 1 stores in the first half of this year.

In addition to the closure of new stores, the year-on-year decline in sales of old stores in supermarkets is also worrying.

From the current data, a number of supermarkets in the same store growth rate decline, generally lower than 10%, some lower or even negative growth.

Since the beginning of this year, the downward pressure on China's economy has increased. Due to the impact of the macro-economy, some retail businesses such as shopping malls and supermarkets in some parts of the world have been losing power or even losing money.

Under such circumstances, retail enterprises should rejuvenate themselves and expand cautiously.

From relevant media reports, we can see that supermarkets in some parts of Guangdong are experiencing difficulties in running businesses, some close down, and there are such incidents as the boss owes a large sum of money and then runs away.

This is a case in Guangdong or even the whole country's retail industry, is it showing an increasing trend? Economic commentator, Wang Xianqing, director of the Institute of circulation economics of Guangdong University of Business, thinks that this phenomenon is very extensive and similar phenomena happen everywhere.

This is a widespread phenomenon, but there is no such thing as closing down and running away like the spring tide.

Similar phenomena occur everywhere, but this phenomenon has just started, and there are cases or a few such phenomena in various places.

According to the Ministry of Commerce monitoring data, the total retail sales of consumer goods in China in the first half of this year amounted to about 9800000000000 yuan, after deducting price factors, the actual growth rate was 11.2%, and the growth rate slowed down 0.4% compared with the same period last year.

Since the beginning of this year, the downward pressure on China's economy has increased. Wang Xianqing believes that the big economic downturn is the main reason for the decline in profits and even the difficulty in running businesses for supermarkets, shopping malls and other retail enterprises.

Wang Xianqing:

It is a barometer of the national economy. Supermarket department stores are barometers of the retail industry. Therefore, it is a common phenomenon that supermarket department stores are relatively difficult to operate at present.

After hearing the news, I discussed with the retail industry in several cities in Guangdong. We all felt the pressure, especially the traditional department store industry.

In the past, most of the supermarkets and department stores were exposed to more pressure. Wang Xianqing introduced the overall state of China's retail industry.

Wang Xianqing: the whole retail trade in our country is growing up, but there are fluctuations in the process of growth. We are also in the low ebb of the growth process. This low tide is consistent with the overall economic environment, because of the pressure of the economic environment.

At the same time, Wang Xianqing believes that the current low tide is just beginning, and it is estimated that the end of the year will not be the end.

Wang Xianqing: from the current situation in Guangdong, the pressure of economic contraction has been winding up to the retail industry. The process is just beginning.

A year ago, we were reluctant to admit that the retail industry was in the winter. Now everyone is willing to accept it. It does enter the retail industry in winter or even in the cold winter.

There is a view that the rapid growth of online shopping is also the main reason leading to the decline in profits of supermarkets and shopping malls.

Wang Xianqing believes that this is part of the reason.

Wang Xianqing: This is a reason, because it diverts a considerable part of the purchasing power, so that many retail customers and their merchandise sales to network sales.

There are some supermarket chains in the early years, such as the year before last, the expansion speed was very fast last year, even "fierce", and now we have to shrink the front line.

In the context of the current economic downturn and weak consumption, should the expansion of the retail industry be more cautious? Wang Xianqing believes that we should not blindly expand indefinitely.

Wang Xianqing: because the expansion of any format is regular, there is a high tide and can not be blindly expanded indefinitely.

As a supermarket

The expansion of industry and convenience stores should abide by certain rules, especially periodicity.

Now, despite the low tide, we should be alert to expansion and some will be eliminated in this process. Now we should be in this shuffle stage.

In different regions, the degree of acceptance of the retail supermarket is different. In the southern area, such as the Yangtze River Delta and the Pearl River Delta, there are many small supermarkets. It can be described by "three steps, one post, five steps and one whistle". The northern part is relatively small, and there is no supermarket in a street. Does it also decide the different business principles and strategies adopted by the supermarket operators?

Wang Xianqing: This is certainly the case, because different levels of economic development determine the level of development of the retail industry. The density of commercial outlets is the problem of density and distribution of commercial outlets. In the Yangtze River Delta and the Pearl River Delta with high economic development level, these businesses are relatively mature, so the layout is relatively dense and the distribution is more reasonable, and more importantly, the life of residents is also very convenient.

In the mainland, especially in economically underdeveloped areas, its purchasing power is limited and its economic development level is limited, so its outlets are scarce.

In addition to the newly opened supermarkets, the decline in sales of old stores in supermarkets is also worrying.

Many supermarkets,

The growth rate of same store sales in old stores is decreasing obviously.

Wang Xianqing believes that in such a situation, church merchants must maintain risk awareness at all times.

Wang Xianqing: at present, such a big adjustment, the economic downturn is actually a lesson for the retail industry in the whole country.

Any economic growth is at a low ebb. We can't blindly blindly rush at the height of the climax.

So now our retail enterprises and business enterprises must maintain a certain cash flow at any time and maintain a certain sense of risk.

Wang Xianqing has given some suggestions on how retailers should preserve their strength and meet the bottom line for better development in the future.

Wang Xianqing: there are at least three aspects worth noting. First, we should clear up the development ideas of the past ten years or even longer.

In the past, the mood was very high. Now we should clean up and treat our business development calmly.

Second, we need to clean up and integrate all kinds of resources. In the past, we could be wasteful. Now we have to maintain our own strength, and how much we need to play. We should check our resources.

Third, we should shrink the fronts of some business expansion strategies with obvious mistakes. We should not continue to go wrong on the wrong path. We should go back to the outside world.