Threshold Lower And Lower Retail "enclosure Movement" Was Underway - Home Appliance Retail

March 1, the vast majority of foreign-invested commercial enterprises the power of

approval from the national to the local, this indicates that the field of foreign capital into the business further reduced threshold.

For domestic retail competition is already intense, the relaxation of foreign investment approval will, as some people in the industry predicted, while foreign enterprises and domestic enterprises raised the "race shop," which set off a new round of " Enclosure Movement "?

Threshold lower and lower retail

Under "Ministry of Commerce on Entrusting Local Departments to review foreign investment Commercial Enterprises", since March 1, 2006, the Ministry of Commerce will be asking the provincial authorities and national economic and technological development zone, is responsible for handling the vast part of the approval of foreign invested commercial enterprises work.

Reporter has learned that local approval of the decentralization of power, including: a single store does not exceed 5,000 square meters, shop no more than three, and a similar number of outlets in China, not more than 30 retail businesses; a single store does not exceed 3,000 square meters, the shop not more than five, and a similar number of outlets in China, not more than 50 retail businesses; a single store does not exceed 300 square meters of retail enterprises.

Analysts pointed out that the approval of foreign investment in commercial fields decentralization, to further simplify the review process and steady progress in opening China's distribution industry. Foreign retailers, especially those not yet entered the Chinese market will benefit small and medium chains.

"Shop race" was underway?

In the industry are forecast, foreign investment approval to further reduce the threshold will make transnational retail giants "Tashang rapid expansion of the train," while local companies will also adopt a "catch-me" response, the formation of a new round of "Open a race." For example, Suning Appliance announced that the number of new stores in 2006 will reach 150 to 200. Authoritative data show that in 2005 the Ministry of Commerce approved the establishment of 1,027 foreign-invested commercial enterprises, which in October, November, December month approved the establishment of foreign invested commercial enterprises are more than 100, respectively 106, 163 and 123 home. "Placed in front of the domestic retail enterprises pressing issues, not simply expand the size and the number of foreign Competition store, but how to change the growth pattern as soon as possible to improve the market viability." Brilliance Group, said the responsible people engaged in an analysis, the first round of high-speed expansion of foreign competition, China's domestic retail business at an annual 30-40 percent rate of growth, but this "war of attrition" to the domestic retail industry has been buried a hidden danger??? scale enterprises, no effectiveness, deciding whether the long-term survival of poor profitability.

Therefore, domestic local retail businesses, from the old "Happy Valley enclosure" as soon as the transition to "precision farming", from extensive to intensive growth type of growth changes, is the top priority and a long-term strategy.

Joint upstream

The past two years, many famous transnational retail groups have the regional procurement headquarters to China, in addition to the Chinese market due to the formation of large-scale importance, the multinational retail giants Another aim is to strengthen the industrial chain Upstream, on the supply of control, to ensure low-cost sourcing, efficient supply.

Present, many domestic retailers still remains in the "moving bricks and mortar" type of traditional profit model: the goods from the manufacturer, and the "moved" to the consumers and pocketing the difference.

Data show that the external dependence of our retail business for more than 90% of Fortune 500 companies in the top 250 on the external dependence only about 50%. On the other hand, retailers and suppliers in China tensions, conflict-ridden, but also impede the harmonious consumption environment has become a negative factor.

Experts believe that the domestic retail enterprises, with the cooperation of the upstream industry chain, to develop its own brand products and other methods, not only to form a new profit growth point of business, but also strengthen corporate control over the market, to improve the relationship between retailers and suppliers.

Present, although some domestic retail enterprises have realized the importance of its own brand, but the early development requires investment in a short time scale is difficult to form and so on, will affect the company's determination and enthusiasm.

by:gaga

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