The Network Supermarkets Experience Three Major Bottlenecks

The internet retailers are challenged

The internet retailers are challenged. Just recently, the MerryMart online supermarket is also temporarily closed down. It is said that a number of small network retailers are facing closure or transfer difficulties. The supply chain, logistics and funding issues are the three major bottlenecks of the industry.

In recent years, Jingdong Mall, No.1 Shop, Large Warehouses, MerryMart online supermarket and other businesses have raised. But Large Warehouses t online supermarket has announced that the company's internal system is adjusting and the clearing functions are suspended. Statistics show that in 2009 into the Sinar Mas Group APP intended to enter the e-commerce field. In the June of 2010, Large Warehouses site was formally on line.

The enterprises have an unwritten statement that if the development of the online supermarket is well then the time is 1 year. In 1 year, if there is no sign of profitability, the business needs to stop. Currently Large Warehouse has just operated for more than a year and its profit pressure seems great. Large Warehouse is not the only network supermarket that has a crisis. The reporters found that a number of network supermarkets is also facing closure or transfer dilemma. The analysts say network supermarkets face crisis is due to the problem of the supply chain.

Consumers have complained that Large Warehouse often linked some ultra-cheap goods, but it can not be honored. The biggest advantage of online shopping is cheap. There is no store rent, no intermediaries, and even has a direct factory resource. But this requires the network supermarkets have a good relationship of supply chains. But not all online retailers can do that.

Secondly, the same with physical retailers, network supermarkets will have the logistics trouble. At present, most online shopping companies are using third-party logistics mode of operation, which makes the process prone to transport cargo damage, and it is costly. "Once the third-party logistics companies increase price, the online shopping businesses are very passive. Most online shopping companies have not self-built logistics business, which will affect its performance and increase costs. The reporter noted that the current use of self-built logistics and warehousing are few.

The third problem is the money chain. The input and return are difficult to balance. There is not much room for profit. Data shows that, by the end of the last year, among the 3700 e-commerce companies registered in Shenzhen, nearly 500 bankrupted or restructured. The Association expects that number will increase.

by: Amanda Xia

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