Market Trends: Single Format Will Be Difficult To Survive

Carrefour is busy opening convenience stores, and WAL-MART is eager to lay off staff. Even the department store's Rainbow shopping mall also wants to open convenience stores. It seems that the latter is more suited to the development of the current market.

To become a regional king, it is almost impossible to achieve by relying on a single format. In 2015, more enterprises will give up the way of "single format to conquer the world", which is mainly caused by the following factors.

First, the development stage of the retail industry. Ten years ago, whether it was hypermarkets, community supermarkets, convenience stores, shopping centers and department stores, no matter which one could expand the scale and format of the retail stores quickly, it was more conducive to the rapid expansion of the market. The surge in the overall sales volume of the domestic retail market in the past ten years is proof.

Nowadays, different enterprises can form a national cross regional development. The competitive advantages of many formats are much better than that of a single format, which enables enterprises to do well in the market competition. Moreover, there are few national development enterprises. Most enterprises are more inclined to carry out multi format infiltration development in the regional market.

Second, market competition. Carrefour can be considered the first to introduce large stores into foreign enterprises in China. It is also a foreign capital hypermarket company that has maintained a leading position for quite a long time, but it also needs to open convenience stores. From the perspective of small and medium-sized enterprises, unless it is a newly established enterprise involved in retail business, it can build an advantage in the local market with the help of a certain format. If we want to maintain the position of a regional market, we must Multiple formats Infiltration.

Hypermarket Shopping Mall This is a foregone conclusion, whether in the second tier cities or in the three or four tier cities, and even the county market and the township market. This is due to:

First, the biggest bottlenecks encountered in hypermarkets. In the physical retail format, the hypermarket is the main form of chain retail business, and it is also one of the most obvious forms of business impact. Because shopping centers experience advantages, community convenience stores are closer to consumers' lives and become an important part of the business. However, apart from traditional commodities and large areas, the competitiveness of supermarkets is declining.

Second, Hypermarket Conditions for transformation of mini shopping center. At present, the external rental area of large stores plays a role of increasing the service function of the stores, but most of them are only a joint or leasing relationship, and have not played the advantages of leisure, experience and entertainment of shopping centers. By adjusting the self occupied area of the hypermarket, increasing the service and experiential function of the shopping center, customers can enjoy the feeling of shopping center in the hypermarket.

Third, the embarrassment of hypermarkets. Convenience stores, which are sought after by 020 of the electricity supplier, have become the last kilometre positions to link up with customers. Shopping centers are favored by many retailers for their unique formats, inclusive and personalized experience. But as the main retail form of the retail industry, the shopping mall has gradually lost its vitality.