For quick access to, or rapid increase market share, foreign retailers willing to pay a higher premium to buy some that have established inter-regional network of company stores
End of the year 2006, Trust-Mart headquarters in Guangzhou supermarkets Tangxia are selected on the promoters of milk Ivy customer is always hard to recommend indifferent.
"Price swing, this week discount prices the next week." Ivy in IT industry, said she knew the news of Wal-Mart's acquisition of Trust-Mart, but also to understand the strength of Wal-Mart, the world number one, but she most want to get better and more assured of goods. "I like Carrefour and PNS can be a PNS in recent days, Hebei, Carrefour in the village on, I had no choice."
Like many consumers, like Ivy, like, in fact, 2006 sales will reach 350 billion U.S. dollars in Wal-Mart's acquisition of a sale of only 13.5 billion yuan last year, the Trust-Mart, for whom may not have much impact, but in the retail market, which the deal because of the "China market" the key words and concern.
Expansion of the theme
November 2006, total retail sales of social consumer goods in China 682.2 billion yuan, compared with 14.1% growth in same month last year. "The Americans brought China, immediately think of gold opportunities." United States, a venture capital firm's Chinese partner. If the acquisition of Trust-Mart and Wal-Mart, not only will the Chinese market pie, but also the opportunity to beat their biggest rivals in overseas markets Carrefour.
The beginning, it gave "M" This act Lenovo various lively face. Now, the face reappeared behind Tesco (tesco). The UK's largest retailer finally can not stand Wal-Mart, Carrefour, two from Europe and the United States of giant dinosaurs in the Chinese market, "wantonly trampled", before to 180 million pounds (about 350 million U.S. dollars) to support the cost of some Tesco shares to expand from 50% to 90%. What participants from the spectators transfiguration.
"Expansion of the retail industry is still an investment theme in 2007." Huatai Securities analyst Dong Hongyu Co., Ltd. in its latest research report so expressed. And support his reasons for this view is the macro business environment in 2006 remained robust retail.
"In order to quickly enter or rapid increase market share, foreign retailers willing to pay a higher premium to buy those stores on a certain cross-regional network company. Thanks to their capital strength, but also their in China cross-regional market is more optimal operational capacity. "Hua-Jun Huang, president of South China Business Network, said this trend will intensify in 2007, which will further demonstrate the strength of transnational corporations across the region.
Local businesses to expand in various ways, have also recently formed a regional leader in retail business, such as Brilliance Group, shares and other large companies. With the regional leading enterprises in the region in which the continuous expansion in the region of decreasing resources available to set up shop, the regional leading enterprises also went out of the national expansion of the road. In 2006, the largest New Town Plaza, the acquisition of Qingdao, Shandong Scholar Group, the people of department stores, supermarkets and so on Supply Chain Management acquire from the mountain, in 2007 this trend will become increasingly evident.
However, be cautious that, because China consumer spending habits in different areas of difference and advantage of the resources and experience weaker regional leading companies from outside Kuo Zhang, in particular a number of new stores Wang Wang will Mianlin adverse factors currently it is very difficult to see that domestic retail enterprises operating outside the headquarters can take the first ground. Therefore, how to handle outside the expansion of regional leading enterprises will be key issues for future development.
Investment focus
Specialty store and department store chain
In 2006, total retail sales of social consumer goods in China than in February by the New Year ahead of the fallout of lower growth factors, the remaining months maintained a rapid growth rate, and start from July, the growth rate on the rise. The Chinese government has recently made clear in the work plan properly handle the investment and consumption, the proportion in the national economy, increase the proportion of consumers in the national economy. Therefore, the long term, the development of the retail industry continues to face a good policy environment.
McKinsey Global Institute's latest research shows that in the next 20 years, real spending power of Chinese cities from 3.7 trillion yuan in 2005 rose to 19.2 trillion yuan in 2025, after Japan and China will become United States, the world's third-largest consumer market.
McKinsey expects housing, health care, entertainment, education, and transportation and communication will be the flexibility of the highest growth rate of consumer goods in the four product categories, including transportation and communication of the average annual growth rate of 10%, entertainment and education 9.7%, housing and utilities was 11.7%, pocket health care spending growth rate will reach 12%.
GF Securities senior analyst Ou Yafei in a research report that, by 2006 9 months 1000 the core retail business the latest data show, specialty, department stores, large supermarkets were up 17.3%, 16.2% and 13.6%. Based on this, the investment focus in 2007 will fall specialty store and department store chain industry.
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