How to improve the competitiveness of Chinese enterprises

To make up for the gap between China's retail industry development and that of developed countries, it is impossible to simply rely on self-development by closing up. To realize the leapfrog development of China's commercial and logistics industry, expanding the retail industry is an inevitable choice. Of course, because of the large gap between China's retail industry and the developed countries, adhering to the principle of opening up the retail industry to the outside world does not mean full liberalization or abandonment of management. In order to reduce the possible impact of opening up the retail industry to the outside world, strengthen the response to the situation, and avoid the harms, we should do the following:

1.Strengthening the integration of resources and realizing the benefits of scale

In the process of competing with foreign-funded retail enterprises, the Chinese retail enterprises have to be more competitive with foreign-funded retail enterprises.

In the process of competing with foreign retail enterprises, the more obvious disadvantage of Chinese retail enterprises lies in high operating costs and thin financial resources. To address this situation, Chinese retailers should focus on the integration of resources, implement strong alliances and realize economies of scale. This will enable enterprises to reduce costs and improve their ability to withstand risks. The purpose of integrating resources and expanding scale can be realized by vigorously developing chain operations, establishing virtual enterprises, implementing cross-regional alliances, etc. At the same time, it is important to realize the scale operation of retail enterprises. At the same time, the realization of scale operation of retail enterprises needs the support of the government. The implementation of large-scale operation is the trend of the development of China's retail enterprises, governments around the world have recognized the importance of creating conditions for retail enterprises, recently several large cities have formulated relevant policies thousands of small retail stores gradually into a unified chain system. The Shanghai Municipal Government proposes to localize to improve their competitiveness: 13 enterprises in Beijing formally set up the First Company Group under the auspices of the Beijing Commerce Commission to consider taking relevant measures to implement cross-regional alliances to clear the obstacles for the expansion of local retail enterprises. The Shenzhen Municipal Government is considering that breaking down regional restrictions and scaling up retail enterprises is an important way to enhance the competitiveness of China's retail enterprises, and that governments around the world should cooperate with each other and *** with the same development to enhance the overall competitiveness of retail enterprises.

2. Giving enterprises the necessary policy support

The average total profit of Chinese retail enterprises is less than 1% of that of foreign retail enterprises, and the profit margin is 2.5 percentage points lower than that of foreign retail enterprises, which suggests that the enterprises' internal ability to accumulate capital is poor, and that they need to obtain a large amount of financing from external sources for expansion. The lack of financial resources will further hinder the growth of Chinese retail enterprises. In recent years, the meager profits of the retail industry have made it difficult for many enterprises to raise funds internally, while the uncertainty of competition in the industry and the strong entry of international giants have made it more difficult to raise funds externally. It is necessary to actively study the policy measures, fully utilize the financing functions of banks and securities markets and a variety of financial service means to guide and help enterprises to broaden the financing channels, improve the efficiency of the use of funds and break through the bottleneck of financial resources.

3. People-oriented, strengthen enterprise management

In the world dominant position in the United States, the retail industry has always attached importance to attracting and recruiting elites from all walks of life. 2000 when GE CEO Jack Welch just announced that he was going to be the first to take on a new role in the retail industry, he said that he would not be able to do so, and that he would not be able to do so. GE CEO Jack Welch just announced his successor, the power system CEO Bob Nardelli was selected. Nardelli was a discerning Home Depot board of directors hired, replacing 20 years has been co-founders Bernie. Marcus and Arthur Blank. and Arthur Blank, who had held the CEO position for 20 years. Bob. Bob Nardelli had no retail experience, and Home Depot's board was no doubt looking for world-recognized GE management experience. Nardelli really lived up to the expectations, soon after taking office to implement a bold reform from corporate culture to management system, the performance of the industry to impress. In contrast, in China, the strategic plans of domestic businesses have so far been in the hands of general managers appointed by the government on behalf of state-owned stocks, or controlled by the founders of private enterprises. Many people are talking about "talent is not dug, but their own training out", although the importance of enterprise training of talent, but "ten years of trees, a hundred years of trees," facing the survival of China's retail industry is simply impossible to rely entirely on their own training to solve the talent The crisis of talents can't be solved by training itself. In the battle of life and death of the retail industry in the face of the great powers after the accession to the WTO, the crisis of talents is the biggest crisis.

Human resource is a bottleneck that restricts the development of Chinese retail enterprises. Chinese retail enterprises have long lacked a mechanism to attract, cultivate and incentivize high-level retail talents, and the brain drain is relatively serious. There is a relative lack of high-level talents with modern retail knowledge within the enterprises, which puts them at an obvious disadvantage when participating in international competition. Chinese retail enterprises must establish standardized corporate rules and regulations; change from the past concept of simply managing people to the idea of how to stimulate people's enthusiasm. Utilize incentive mechanism to cultivate talents, absorb talents, retain talents, tap human potential, improve the quality of employees in business, establish team spirit and professionalism, and enhance the cohesion and competitiveness of enterprises. At the same time, it is also necessary to strengthen the construction of multi-level training system, pay attention to human resources development, and do a good job in the construction of talent training system. To provide a good environment and conditions for the cultivation and role of talents, to break the stereotypes of seniority, boldly arrange talents with special talents and skills to important departments and key positions; to allow talents with outstanding contributions to enjoy generous material treatment and higher labor compensation. While strengthening the internal people-oriented management, we must strengthen the awareness of external people-oriented management and establish the idea of consumer first. The establishment of relevant mechanisms to establish a good partnership, greatly enhancing the interests of both sides.

4. Shape the store brand, create a famous brand

Brand equity is defined as a series of brand resources and reliability features that can add or subtract value to a product or service - such as name, logo, product, service, etc.. These brand assets include brand loyalty, brand awareness, quality recognition and its brand associations. Brands are an important part of a company's financial value. According to a study conducted by Fortune magazine, 20 years ago, tangible assets accounted for 95% of a company's market capitalization and intangible assets accounted for 5%; however, in 2001 this ratio was reversed, with a company's tangible assets accounting for 28% while intangible assets accounted for 72%. The value of the brand can be seen to be more and more important, but it should also be seen that the role of the brand of each industry is different. For example, perfume, the brand is very important to consumers, if the "Chanel" this brand removed, then it is in addition to the fragrance of the water in addition to worthless, so the perfume bottle above the trademark is actually the entire value of the product. Wal-Mart Department Stores to enter the international market success, not by chance or randomly shooting birds, or the United States business model into the new market as is, but planned adjustments, adapt to local needs, standing completely in the customer and the environment to position their own actions, carefully planting the seeds of the "great brand" to effectively enhance the acceptance of local customers to the Wal-Mart brand. The acceptance of Wal-Mart's brand by local customers has been effectively enhanced. Therefore, how can domestic companies strengthen their brands? Increased advertising costs have long been the only way to expand brand awareness and loyalty, and to build the brand's technical and management connotations, to provide good public service, is the retailer's top priority.

Retailers rely on brand differences to establish a lasting competitive advantage. Specifically, the first is to establish credibility and adhere to professional ethics. The second is to understand customers' needs, care for them, fulfill them and gain their understanding and support. The third is to establish long-term relationships with customers, such as carrying out commitment services, establishing customer files and implementing the relationship manager system. Fourth, strengthen brand maintenance and publicity, improve brand awareness, cultivate reputation, and let consumers personally feel the value of the brand. Fifth, in the development of private label to pay attention to the selection of commodity categories, enhance product design and development capabilities, the development of a strictly standardized management system, the realization of comprehensive quality supervision and management, to maintain the image of private label in the minds of consumers. Sixthly, the cooperation with manufacturers should be strengthened, so that the development of private labels can produce greater benefits on the basis of mutual benefit. The relevant departments should strengthen the study on the protection measures for the famous trade names and commercial old names of retail enterprises, and the circulation enterprises should strengthen the brand integration, brand protection and brand cultivation, and tap and play the brand resources.

5. Modern information technology, science and technology to help.

Contemporary retail industry has long ceased to be the traditional "buy and sell, cheap in and expensive out" of simple commercial behavior. It is the competition of scientific management and high-tech application between industries. As we all know, the modern market information collection and analysis itself is the embodiment of high technology. Consumer psychology, behavior, habits, and income and even marital status are all necessary for business decision-making, new systems, software should come into being. High-tech in product development, merchandise planning, sales forecasting, sourcing and accurate pricing and other aspects of the application has become an indispensable basis for decision-making operators.

The emergence of the Internet has dramatically changed the traditional retail trade model, and the rise of e-commerce based on Internet technology has pushed the retail industry to a new stage. In line with the trend of technological development, the implementation of e-commerce to enhance the core competitiveness of enterprises has become the industry **** knowledge. In the early 80's, Wal-Mart cooperated with Houston, invested 700 million dollars to establish the largest private satellite communications system in the United States. The system includes customer management, distribution center management, financial management, merchandise planning and price management, inventory management, merchandise management and employee management in several parts, management personnel can be through the computer system and any store, distribution center contact, in 1-2 minutes can accurately grasp the day's merchandise, sales, inventory, ordering, distribution, finance and staff and other aspects of the situation. With this advanced communication system, it improves the distribution system of the whole enterprise, the level of informationization and the adaptability to the changes of the whole market. At present, the technological content of China's retail enterprises is not high, compared with the foreign-funded retail enterprises is a far cry; at the same time, there are such problems as hard and software imperfections, the corresponding laws and regulations are not sound, supporting services are not in place. However, it can be asserted that the rapid development of information technology and the accelerated popularization of the Internet in the future will fundamentally change the way of retailing and industry, the traditional retail industry will be the full application of e-commerce as a technological tool for the development of the retail industry to open up a broader space.

Walmart's former CEO, David Glass, once said, "Walmart is a technology and information company". At first glance, this sentence is difficult to understand: Wal-Mart is not the world's largest retailer? When you look at it more closely, Glass's words can be said to be a word out of Wal-Mart's low-cost, high-efficiency true meaning.

6. Specialty winning.

When it comes to business characteristics, the attention of domestic businessmen is still stuck in the product features. But the good product manufacturers want to expand sales channels and market share, simply do not pay attention to the business hope that the hope of exclusive business. Merchants own brand because the real scale of the chain has not yet formed, so whether from the theoretical discussions or practical exploration are in the embryonic form, it is difficult to take on the product characteristics of this important task. The American retail industry's understanding of "business characteristics" is much broader, mainly emphasizing the store's distinctiveness in business style. The most typical examples are Wal-Mart, Target and Kmart. At first glance, the three belong to the same type of discount chain stores, very similar. However, Wal-Mart with its "everyday low prices" has long formed its own value for money style, its opponents know that the price war with Wal-Mart is tantamount to throwing stones; Target through years of efforts to launch a number of very influential designer brands, and gradually formed its own position as the leader of the fashion trend; sandwiched in which Kmart Kmart, which was caught in the middle, had to file for bankruptcy protection because it hadn't been able to find its own business characteristics and was in a constant state of bad luck.

7. Accelerate the cultivation of large-scale national distribution enterprises with international competitiveness.

At present, the level of assets, sales and profits of China's large retail enterprises is less than 3% of the average level of foreign retail giants, and the average number of stores owned by each of China's existing chain commercial enterprises is 17, which is far from that of international large-scale retail enterprises such as Wal-Mart with 4,688 stores, Carrefour with 10,400 stores, and Ito-Yokado with more than 26,000 stores. The rapid development of the national economy is very unsuitable. The government should utilize the WTO rules to better promote the development of China's retail industry and enterprises, and create a fair competitive market environment for enterprises. Encourage the advantageous enterprises to merge the disadvantaged enterprises, strive to achieve low-cost expansion, promote the development of enterprise grouping, improve market concentration, reduce disorderly competition in the market, and strive to use 5 to 8 years to cultivate 15 to 20 large-scale retail enterprises that can compete with foreign retail enterprises and initially have the ability to compete internationally.

8. Optimization of retail business structure

Currently, convenience stores, supermarkets and other businesses are growing rapidly, and there are even five or six convenience stores on the same street, competing door-to-door, and there are also hypermarkets, department stores and other businesses in the vicinity, all of which have opened up the field to compete. Disproportionate. Such competition will lead to the closure of some companies and the elimination of the fittest. On the other hand, it also reflects that China's retail business structure needs to be macroscopically coordinated and controlled by the government in order to minimize internal conflicts. Therefore, in order to avoid vicious competition and unnecessary losses, the best way is for the government to guide and coordinate the optimization of the retail business structure, so that the layout of the various business forms will be in an orderly manner, the market positioning will be clearly defined, and all kinds of business forms will, under the government's macro-guidance and coordination, through normal bonding, each of them will be able to run their own characteristics and give full play to their own functions, so that they can form the unity of opposites of the multi-industry forms and produce the effect of benign competition.

9. Chain management group, diversification

Chain management was first born in the United States, the first chain store "Atlantic and Pacific Tea Company" officially opened in New York in 1859. From now on there has been 146 years of history, especially in the 1950s after the rapid development, and department stores, supermarkets and become the three main forms of retail business organization. The World Economic Federation predicts that the 21st century will be the century of chain management, on the one hand, the success rate of the expansion of chain enterprises is relatively high, on the other hand, the chain industry's development speed far exceeds that of other forms of business. The expansion of traditional enterprises to take great risks, the success rate of new enterprises is only 20%, while the success rate of new enterprises in the form of chain management can be more than 95%. Chain operation is the foundation of China's retail development, the inevitable choice for the development strategy of the retail industry, and the innovation of the business system. According to the 2003 China Retail White Paper, the average growth rate of China's retail chain industry is over 50%. Chinese companies with sales of 100 billion yuan in the next five years will first appear in the chain retail sector. At present, China's chain business has entered a period of rapid development, with an unprecedented expansion of business, a more complete industry, increasing scale and standardization, and plummeting sales.

10. Guiding enterprises to formulate strategic plans suitable for their own development.

China's retail enterprises are in a period of rapid growth, and scale expansion is the main feature of this stage. Scale expansion must be built on the basis of enterprises with independent intellectual property rights and core competitiveness, mature business model, perfect corporate culture, and excellent management team. However, in the current situation where Chinese retail enterprises are at an obvious disadvantage in terms of cost control, marketing, financial operations and other core competencies, they should become stronger before becoming bigger. Therefore, when formulating enterprise development strategies, large domestic conglomerates with the ability can choose scale expansion, but SMEs should pay more attention to profitability rather than market share. Otherwise, the day of the enterprise's scale expansion is likely to be the time of decline, the lessons in this regard are profound

11. Vigorously develop franchising - the 21st century, the strategic choice for business development.

Franchising as a modern form of marketing, originated in the United States. Since its inception, it has shown a strong vitality with its unique business mechanism. For example, the total retail sales in the United States in 1997 amounted to more than 2,300 billion U.S. dollars, of which the franchise sales amounted to 800 billion U.S. dollars, accounting for about 35% of the total retail sales. With the strengthening of global business integration and trade liberalization, franchising has become an international trend. By adopting the franchising approach, companies can increase the supply of foreign markets with less investment and without risk, and then control the mode of operation and products, and achieve economies of scale. There are more such examples, like KFC, McDonald's fast food, Kodak wash like store, Fuji method of expanding the store, etc., their operations in China are to adopt the franchising method.

12. Utilizing the local advantages, and actively develop the second and third cities.

China is a large agricultural country, the rural population accounted for 80%, the market potential is huge. the first half of 2004, has entered China's foreign-funded retail expansion pace suddenly heated up the expansion of the road map has also changed, in the capture of the big cities at the same time, the operating costs of the low market space in the second and third cities have also become the target of the expansion of a new round of their. Such as Carrefour, Lotus and other foreign enterprises are in Shandong, Anhui, Fujian, Sichuan, Hunan and other secondary cities to step up the selection of the layout. Consumer behavior in secondary and tertiary markets is very different from that of first-tier cities. Therefore, domestic retailers should actively utilize the local advantages, do a good job of market research in second and third-tier cities, understand the needs of local consumers, and then capture their consumer behavior and develop appropriate marketing strategies.

13. Through each of the enterprise's operation plan and related activities, together with the suppliers, operation channels and consumer groups to build interdependent value chain and benefit **** the same body, to improve the enterprise's overall operation ability.

The first is to hold the exclusive position of products and services. Only in a region of an industry with competitors, can effectively control the resources, costs, technology, market and performance factors and in a kind of exclusive its leading position to surpass the rivals. For example, Guangzhou Automobile Industry Group Co. Secondly, it is to continuously maintain low cost of products and services. Only in the process of realizing a win-win situation with customers, enterprises must reduce costs through a series of initiatives such as management, large-scale production, and the establishment of a new marketing system, and continue to maintain a low-cost advantage. This is the goal that any enterprise must always consider. The third is to maintain a lasting product and service differentiation. Enterprises only to establish some kind of lasting differentiation, it is possible to beat the competition.

14. Improving the ability to master core resources, on the one hand, and creating and accumulating core resources and basic capabilities, on the other.

For example, business teams like Huawei and ZTE have first-rate technology and good business tacit understanding. More importantly, their deep plowing and persistence in a particular field naturally creates an irreplaceable competitive advantage. On the other hand, they monopolize and monopolize resources and technologies. For example, Guangzhou Automobile Group Co., Ltd. and Japan's three major automobile companies, as well as Dongguan's cooperation with Nokia Corporation is the exclusive use of technology. And state holding and monopoly in energy, transportation and communication is the reason why state-owned and state-controlled enterprises account for 74% of the top 50.

15. Continuously expanding and consolidating business networks and improving the ability of win-win cooperation.

Wenzhou's small and medium-sized enterprises and traders, in the past ten years, are based on different business and geographic area, the natural formation of cooperation and division of labor system, manufacturers based on mutual trust, the natural formation of a variety of relationship networks, trading with each other do not need a contract, there is no margin, just based on the belief in long-term mutual benefit, *** with the efforts to fight in the market, both at home and abroad are very strong! Competitive advantage. This is the origin of the international lawsuit won by Wenzhou traders. Cooperation is a win-win situation, our country was ruled as color TV dumping is another end.

The above, is my own collation and induction, I hope it can help you oh~~~