What is the business model of the supermarket?

Supermarket refers to a large-scale comprehensive retail mall that deals in food, household necessities and food for customers to choose from. So what is the business model of the supermarket? Below I will explain to you what the business model of the supermarket is, hoping to help you.

Supermarket management mode

If overseas retailers want to occupy a place in China's retail market with huge consumption potential and huge profits, they must realize that the national conditions of China are different from those of other countries.

Although large-scale supermarkets still account for only a small proportion in the overall retail industry in China, this retail form has begun to take root among consumers in China and attracted enough attention and investment from international industry giants. But the big supermarkets in China are different from those in Europe and America. The traditional consumption habits of China consumers and the limited car ownership are the two most important factors among the many reasons that urge the operators of large supermarkets in China to change their business models to adapt to the national conditions and local market in China. In addition, the difficulties in determining the suitable location for opening new supermarkets and ensuring the supply of a large number of fresh commodities also make it particularly challenging to operate large supermarkets in China.

However, for local and international retailers in China who are trying to get a slice of this huge market in China, the rapid growth of the number of large supermarkets in China undoubtedly provides them with great development opportunities. However, in order to seize this rare opportunity, retailers need to combine the internationally accepted business model with China's unique retail environment, and find a new way for the development of large supermarkets that meets the requirements of China's national conditions.

It seems that large-scale supermarkets are destined to become the dominant mode in China's fast-growing retail sector. This sales model not only has an important impact on the consumption habits of ordinary shoppers in China, but also generates greater profits than ordinary supermarkets, department stores and other retail forms. However, any local and overseas retailer planning to open a large supermarket in China should pay attention to this. China has unique national conditions.

At present, the annual growth rate of the whole retail industry in China has reached 7, far higher than most other developing countries. In 20001year, China's retail revenue reached US$ 405 billion, 5.6 times higher than the total retail revenue of other major Asian countries (excluding Japan), and this figure may reach US$ 71300 million by 20001year. Although the proportion of large supermarkets in the total retail sales in China is less than 2%, the average annual income growth rate of these stores has reached 64%, which is much higher than the overall growth rate of the retail industry. Although the growth rate has slowed down now, the sales of large supermarkets will still maintain a relatively fast annual growth rate of 25 to 30 years before 20 10.

Just like large supermarkets in western countries, large supermarkets in China can keep their prices low by buying a lot of goods. In Shanghai, the sales per square meter of large supermarkets is 2.5 times that of local ordinary supermarkets, while at the same time, the commodity prices are lower than those of department stores or ordinary supermarkets 10 to 15. Some large supermarket operators, such as Shanghai Agriculture, Industry and Commerce Supermarket, offer prices about 20 lower than those in other places. Larger sales volume and lower purchasing cost enable large supermarket operators to bargain with their upstream suppliers for more reasonable prices. This part of the advantages of cost reduction will eventually be transferred to consumers, so that they can taste the benefits. The annual profit rate of some large overseas supermarkets that have already started business in China can even reach 3, while the annual profit rate of most ordinary supermarkets in China can only reach 1.

So what's the difference between big supermarkets in China? Large supermarkets in Europe and America are often located in the urban-rural fringe, while those in China are often located in densely populated urban centers, because few consumers in China own private cars and can go shopping by themselves. The unique geographical location of large supermarkets in China makes it easy to attract a large number of repeat customers. With the importance of supermarket space becoming more and more obvious, the large supermarket operators in China have abandoned the warehouse and single-storey supermarket management mode in western countries and created multi-storey supermarket structure instead. Western supermarket shoppers like to buy everything for a week at a time, while China consumers go to the supermarket more frequently, and at the same time, they will spend less than western consumers. According to the special consumption habits of consumers in China, the smaller shopping basket prepared by supermarkets in China is an obvious improvement. The number of private cars owned by ordinary people in China is not as high as that in western countries, which also gives birth to a very creative supermarket service-Wal-Mart Supermarket provides regular shuttle bus service for consumers in Shenzhen.

In China, going to the traditional vegetable market or ordinary supermarket to buy fresh food has become a compulsory course for ordinary people every day. By providing consumers with a large variety of fresh or small packaged foods, the tit-for-tat competition between large supermarkets and traditional food markets and ordinary supermarkets is becoming increasingly fierce. A very important thing that distinguishes large supermarkets is that their operators can often provide consumers with the freshest agricultural products and meat products because of their larger consumption flow and faster food sales.

However, the purchase channel of goods is still a severe challenge for overseas large supermarket operators who try to be self-disciplined by western health standards. Of course, for local enterprises in China who want to catch up with international supermarkets in the fierce competition, there are also the same problems as their competitors. There are about 35,000 different products in supermarkets in China, so it is obviously not so easy to trace the original manufacturer of each product. Unfortunately, the sanitary conditions of agricultural cultivation in China are very different, and the rules and regulations restricting the use of pesticides are not particularly strict. At best, it's just some rules With the rapid competition of large-scale supermarkets in some first-tier cities in China, such as Shanghai and Guangzhou, how to choose a prime location that is easy to gather popularity as a store location has become another important challenge that large-scale supermarket operators at home and abroad must face. However, in domestic second-tier cities such as Chengdu, Dalian, Nanjing and Tianjin, there are still huge development potentials and plenty of development opportunities. It is estimated that by 20 10, 33 cities in China will be able to accommodate as many as 800 super-large new supermarkets.

Although large supermarket operators in China and abroad have to face various strategic or operational challenges, these obstacles do not seem to stop supermarket operators. Since 1995, Carrefour has opened 3 1 stores in Chinese mainland, and plans to expand its market share at the rate of adding 10 stores every year in the future. Before other retail models emerge, large supermarkets will continue to expand their share in the retail market in China.

Precautions:

A standard definition holds that a large supermarket has a business area of at least 2,500 square meters and can provide all kinds of food and other commodities.

Operating characteristics of supermarkets

In addition, the characteristics of supermarkets are mainly as follows:

(1) The goods in the supermarket are packed in advance in a mechanized way according to certain weight and specifications, and put on the shelves respectively, and the prices are clearly marked. Customers can do self-service and choose at will.

Computers and other modern equipment are widely used in supermarkets. It is convenient for managers to quickly understand the sales situation, timely save, sort out and package goods, automatically set prices and calculate prices, improve work efficiency and expand sales.

(3) The variety of goods in the supermarket is complete and easy to choose. People can buy most of the goods they need in daily life in a shopping center, which saves a lot of trouble. Automatic pricing, high efficiency in pricing and settlement, saving customers' time. Moreover, due to the good operating efficiency of shopping malls, the cost is reduced, so the commodity prices are relatively low, which is welcomed by our customers.

Management trend of supermarkets

Since 2002, the total number of stores, the total area, the number of employees, the total sales volume and the total profit of the supermarket industry in China have shown a steady upward trend. In recent years, the net profit rate of supermarket industry is 2.35%, and the average net profit rate is 2.6%. Judging from the ranking of the top 100 chain enterprises in China, the concentration of retail industry is increasing, and the supermarket industry is also showing the same trend. 10 top enterprises accounted for 2.7% of the total social sales in 2009 and 52.8% of the top 100 retail chains. In 2009, the number of 10 supermarkets and their proportion in the total number of chain supermarkets 100 also reached 34.438+0%.

The composition of retail format is closely related to the per capita GDP level. When the per capita GDP is between1000-3,000 dollars, supermarket chains and hypermarkets become popular and become the first major format according to their powerful expansion nature. China's GDP per capita exceeded US$ 65,438+US$ 0,000 in 2003 and US$ 3,000 in 2008, which is in the stage of rapid development of chain supermarkets and hypermarkets, while standard supermarkets are in the stage of recession.

It is predicted that by 20 18, China will be able to accommodate 480 1 supermarket stores with an area of 480 10000 square meters respectively.

Take Shanghai as an example. There are various retail formats in Shanghai, and the competition between domestic and foreign retail giants is fierce. Although there are many local supermarket enterprises in Shanghai, the scale is generally small. For a long time, supermarket brands such as Hualian and Lianhua have firmly occupied the Shanghai market in small and medium-sized markets. The invasion of international large-scale supermarket brands makes it adjust its strategy, on the one hand, consolidate the small and medium-sized market, on the other hand, step up the layout of its large-scale stores such as Century Lianhua and Hualian Jimaisheng. However, in terms of popularity, product placement, promotion, shopping environment, etc., foreign-funded and Taiwan-funded stores are more mature. In the market, Carrefour, Tesco, Lotus and other brands have been deeply rooted in the hearts of the people.

Supermarket industry is an industry that exerts its scale advantage, and the support point of scale advantage lies in the wide distribution of logistics network. Scale advantage is transformed into procurement cost advantage and quality control advantage through good logistics management ability, and quality control advantage plus cost advantage is easy to form good reputation and brand image advantage. In response to the competitive pressure from foreign giants, the Shanghai Municipal Government is actively promoting the merger of Lianhua Supermarket and Hualian Supermarket.

Development trend of local supermarkets in Shanghai: (1) scale; (2) refinement; (3) own brand. In terms of scale, supermarket enterprises are more inclined to establish a store network supported by logistics network. At the same time as the encryption of outlets in mature first-and second-tier areas, the strategy of opening stores has turned to channel sinking, occupying surrounding cities and even rural markets, and acquisition and reorganization will become a shortcut for the rapid scale of supermarket enterprises. In detail, the focus is on the innovation of business format and mode, the improvement of logistics supply chain management efficiency and the construction of online supermarkets. Increasing the proportion of private brand goods is the ultimate goal of improving the efficiency of supply chain management.