On 21 November 2023, Ginza Group announced the direction and milestones of its new round of reform.
At present, China's retail industry is in the transition stage between the old and new eras - the era of chasing the number of standard products is gradually passing, and the new trend is to focus on high-quality "pop-ups". In line with this trend, improving merchandising power will be one of the key directions of Ginza Group's new round of reform in the future.
According to retail show, Ginza Group opened its first shopping mall in Jinan in 1996. After nearly three decades of development, the company has become the largest retailer in Shandong, with nearly 170 large shopping malls, more than 200 convenient supermarkets and 17,100 employees.
Ma Yunpeng, chairman of Ginza Group, has decades of experience in the retail industry. In his recollection, China's retail industry has gone through several drastic industrial changes in different times. Initially, China's retail industry was a "product era", where what was produced was scarce and not for sale. After the 1990s, China's transition to a market economy led to a surge in the variety and quantity of goods, and the retail industry entered the "channel is king" stage. In the past decade, the rise of e-commerce, online shopping, group buying and other emerging channels prevailed, opening the era of retail channel diversification. Nowadays, the retail industry is in a new stage of abundant commodities and a wide range of sales channels.
According to retail show, the macro-economic downturn, coupled with the impact of e-commerce, the traditional retail industry in general shows a declining trend. Some retail giants, including Carrefour and Walmart, have faced losses and even withdrawn from the Chinese market.2022 At the end of the year, Ma Yunpeng was appointed chairman of Ginza Group. He began to think about the future direction of China's retail industry, and where Ginza Group's reforms would lead.
Ma Yunpeng realised that the retail industry was facing many challenges, but in the midst of the adversity, there was a force of consumer upgrading, and high-quality consumer goods were constantly emerging under the new concept of high-quality development. This makes it possible for retailers to follow the trend and chase explosive products.
From the beginning of 2023, Ginza Group started a new round of reform, in which the change of improving commodity power became one of the key directions of this round of reform. In the supermarket business, a total of 16,000 new products were introduced this year, focusing on the launch of pre-made dishes and private brands, with year-on-year sales growth of 32% and 172%; Ginza's high-end ingredients supply system was set up, enriching the supply of high-quality new products, such as young, Netflix, and pop-up products. In terms of private brands, Ginza Preferred Series shelved 84 single products, involving 20 subcategories such as disposable products, plastic products, fruit juice and water.
In fact, a "pop-up" or "big single product" can often sell hundreds of millions or even billions of dollars online and offline, and the revenue and profit are often more considerable than a number of standard products.
In order to launch "explosive products", Ginza Group began to test the waters of overseas direct procurement, from "picking the country" to "picking the world". Among them, Ginza went to Thailand to purchase durian and mangosteen, and effectively created a new marketing model such as "Zengcheng Lychee". At the same time, the new signing of the first level of import traders 50, 215 new supply chain, in deepening cooperation, for the whole country to attract investment, the signing of cooperation with nearly 200 leading enterprises, to achieve the "supply chain" to improve the quality.
On 18 November, Ginza Jinan All Games Village Store, the first high-end exquisite life supermarket since the establishment of Ginza Group, reopened. This is another achievement of Ginza Group's new round of reform.
According to retail show, the person in charge of the shop said that there are high consumer groups in Jinan around the All Games Village. The upgrade of Ginza All Games Village Store has resulted in a new layout of the shopping environment and merchandise items - the introduction of high-end aquatic products, imported chilled food, livestock and poultry, and the precise procurement of national landmarks from core production areas, speciality fruits, and top-quality nuts. High coverage of imported goods, the proportion of imported goods in some categories is as high as 30%.
Ma Yunpeng believes that before, the hypermarket competition is the number of standard products, the pursuit is to allow consumers to one-stop shopping. Nowadays, consumers buy these standard products are almost all in the online order, the ability to gather customers plummeted, retail stores should be timely compression of the number of standard products, reduce operating costs, while turning to the ability to gather customers higher food fresh food, focus on creating high-quality pop-up products. In the future, Ginza Group will also launch a series of new changes at all levels to accelerate adaptation to the needs of consumer upgrading.
Source:零售网