The war of "shifting price" spreads, Boxmart and Sam's are fighting each other, Metro and Costco announced to increase the size of the Chinese market; looking for the trend of big brands to replace, Pinduoduo's market value exceeds that of Ali, and the white-label goods of the 1688 industrial belt factories have been brought to life by the young people; the same is also the case of Shanghai's efforts to develop the hard-discount business, with Dingdong Outlet opening its first store to test the waters, and Olezi announcing to increase its size in the Chinese market. The Dingdong Outlet, which targets the middle-aged and elderly customers, opened its first shop to test the water, but also the main attack on Shanghai's middle class, Ao Le Qi, announced that it would increase its presence in the Chinese market.
When the wave of discounting sweeps through the retail industry, where do retailers, brands and suppliers go from here? After the baptism of fresh food e-commerce, community group buying and unmanned retailing, what kind of disruption will discount retailing bring to China's retail organisation? Are we entering an era of total discounting?
When it comes to the background of the era of discount retail, there is a consensus in the industry that China has entered the buyer's era.
What is the buyer's era? It's a time when China's supply chain is maturing, there is an oversupply of consumer goods and channels, and the development of e-commerce and social platforms has given consumers a transparent enough reference for choosing the channels where they want to buy similar goods at a lower price.
According to retail show, discounting is essentially about being an agent of the consumer, with the retailer replacing the brand in a series of tasks such as product selection, promotion and fulfilment.
China's retail industry will fully enter the era of discounting, precisely based on the strong consumers brought about by supply exceeding demand, which will dominate the next cycle of the retail industry for a long time.
At present, the first outbreak, the track is the most crowded discount retail, cut into the vertical category snacks, greatly compressed the circulation chain of snacks, with low gross margin + high turnover run through the business model, borrowing the leverage of franchising and capital to achieve the scale of consumer reach, snacks are very busy, zhao yiming snacks, good want to think about it, snacks have a sound are representative of the players.
Operating more essential categories of hard discount supermarkets, the selection of products, procurement requirements are higher, shop type, supply chain need time to polish, in order to meet the specific market demand for specific groups of life, good bargains, Aotearoa, Aotearoa Qi representative of such players are aiming at a specific regional market, specific groups of customers saturated with life trajectory to open a shop.
According to retail show, in the face of the rolling wave of discounting, BoxMart, Dingtong, Yonghui, Wumai, Jiajiayue and other local players who have accumulated supply chain and shop resources have also started the reform of discounting, and they have cut into the discount retailing in either a light or heavy way: some have opened up discount zones in their stock of shops, some have created sub-brands to cut into the race track, and some have opened up diversified types of shops, such as outlets to focus on specific segments of the customer base, and the more violent ones have attempted to reconfigure the relationship between zero and supply. The more aggressive ones try to reconstruct the relationship between retail and supply, thus realising the "discounting" of long-termism.
At the same time, discounts are not absolute low prices. Consumer industry has talked about the most cost-effective, into the quality of the price, the heart of the price ratio - the consumer's pursuit of low prices at the same time, the quality of the requirements have not declined, and there should be enough reasons to spend money. Therefore, like Sam, Metro, Costco face is a membership super, but the inside is a large package of "hard discount", recently announced that speed to encode the Chinese market, Sam is expected to have 6-7 new shops open each year in the future, Metro also announced that the Chinese market will be 100 shops all transformed into a member of the shop.
So, what stage of development have the existing discount retail forces reached? What is the difference in the understanding of discounting between different discount retail forces?
1. Snacks Discount Track: Aiming at the rapid expansion of the sinking market, it has now entered a period of industry consolidation.
Snacks discount as the most rapid development of the discount retail track, these years in the influx of cross-border players and capital, franchise leverage, market penetration rate increased rapidly, the local brand monopoly of the regional market mind, has now entered the second half of the consolidation stage, mergers / acquisitions are frequent, shop profitability to be improved.
2, hard discount supermarkets: to meet the immediate needs of the target group of life, site formation of community, business district division of field
Hard discount supermarkets with wider categories and more immediate needs are mainly designed to meet the needs of different consumers, and have formed a division between community shops and shops in the business district.
3, super transformation: explore the possibility of new discount business, low-cost trial and error and reconfiguration of zero supply towards divergence
According to retail show, in the face of discount snacks, hard discount supermarket track burning fire, Yonghui, box horse, Wumi, Jiajiayue, Yipin Fresh, a class of supply chain, shop resources players also opened the discount reform. In addition to the creation of sub-brands to cut into the snacks discount track, opened a community outlet shop these initiatives similar to their peers, they also launched an exploration of the possibility of a new discount business.
Source:联商网