Why Carrefour Failed in Japan

Why Carrefour failed in Japan? Posted:2005-4-26 views:69 Introduction: * In the recent past, the retail Industry out of a few things: sink like a stone in Japan, Carrefour, Wal-MArt China suffered setbacks in the 21st century convenience died down, Tsann difficult, rendering the entire Industry out of the uncertainty in the strengthening, not only to trouble the old player, but also greatly enhanced the business risk of new entrants. * No matter what background everyone has the cupboard, on the retail business is already quietly epoch-making change, unbalanced Development of the region began to show up to the performance of low-cost supermarkets as the main dominant era is gradually into the multi-value multi-format presentation of the times, these areas are brought about by changes on the business ideas and business structure change, change is the process of Economic Development based on both consumer demand for value in the profound changes have taken place, shopping malls starting from the previous the main features of the price segment of the times the value transferred to the face of various situation: the size of all elements in the retail business of the importance of the decline. • New form, the need to guard against the "value trap." Face the terminal stand in the value of re-selection, the survival of the farce of the retail Industry will be more active and urgent need for the retail Business model design, the value of early identification system for generating clear. Whoever Who is a hero to adapt, who can not see the transformation rules of the game will come to be a martyr! Why Carrefour setbacks? Carrefour in Japan to rely solely on the operation of puerile way, no different according to the Japanese business Culture and consumer habits to adjust their business strategy. Carrefour at the wrong time to choose the wrong country to provide consumers with consumption value of the error. Carrefour opened in Japan in 2000 the first large supermarket opened at the beginning driving a car does have a large number of consumers to purchase there, but over time, where shoppers drive to gradually decrease. Away from the Carrefour supermarket prices though the city has some advantages, but with the Economic development, price is no longer the only factor for the customer, the Japanese consumer spending habits and different from that seen in Europe and America. Europe and the United States Many families will drive to the outskirts of rest days, a large bulk purchase of cheap supermarket food and supplies stored at home, consumption value of convergence, but the general Japanese diet from subsistence gradual structural differentiation, very particular about freshness , especially vegetables, fish, meat and their products, generally with the buy with food, consumer value of diversity. In addition, most women after marriage does not work in Japan, mainly at home, housework, child care, there is also a supermarket near the time Choose only fresh foods. That is basically went shopping in Japan by housewives take, so Japan's supermarkets are generally located near the station in heavy traffic or residential areas and residents are concentrated downtown. The Carrefour supermarket opened in Japan, all located in the city the outer suburbs. From Carrefour's performance in the Japanese market, if the consumer does not grasp the psychology and habits, no matter what country's capital, and regardless of its strength is strong, it is difficult in the fierce market competition foothold. And Carrefour at the right time to enter the right market, China's consumption and the West is almost exactly the price as the main consumer in the interests of the homogenization stage, by the usual low-cost Strategy is effective. Wal-MArt also met recently in China expansion of the bottleneck, the rate of expansion and profitability is far behind Carrefour, Wal-MArt has just into fame when China was very popular member of patterns, but by purely price as a way to attract consumers with consumer value perception of a wide range of production has become obsolete, by the unified model to replicate the rapid expansion despite plenty of room, but increasingly the modern individual tend to even before the post-modern consumers, this Strategy is undoubtedly a great hidden risk. In fact, Carrefour's performance in the Western world is not very good, just support the upgrading of its performance in developing countries, consumption of these developing countries in the Western industrial civilization, just the value of the rapid Development of

the 1970s to the stage before the mid-1990s, , so this price as the main commercial form of consumer incentive certainly has considerable consumer base. But after the West or developed countries and developing countries, after all, the consumer there is a gap in the consumer psychology, from the price of the reasons for this gap to the more advanced stage of development of the more distinct differences. This is the Eastern and Western values in a social level the performance of one of the many ways of course, considerable work before the cultural aspects involved, when cultural exchanges constitute the main aspects. Now, with the increasing development of communication, so that multinational companies are wondering is: China how more and more strange things out? because the multinational commercial Technology and management level of integration, is gradually approaching the core of Chinese values. The engagement process is dynamic, so the bond becomes one of the multitude of contradictions , and accidentally fall into the so-called "value trap" (the price of domestic enterprises to learn this business is the essence of the dominant fur, especially the spirit of deep business value from the consumer group differences are ignored, so that After a lot of cultural differences, from the unique value of specific areas of difference has become an important aspect of the business's future. This is the multinational companies, domestic enterprises that still exist for such a "value trap." stand in this life and death particular focus on relevant, we have to sort out some problems: in the end the consumer level Research or consumer research? China's business structure (regional conflicts will become the player that died, their? Chinese commercial value of the macro and micro cognitive system and development pattern to how the accumulation of Economic power with the change? in isolation from the basic price is the lowest level of the value of such incentives, the more commercial players are going? What has changed rules of the game? In fact, results from the development of Carrefour's global composition and the recent turn of events occurred throughout the retail enterprise can clearly see: relying solely on price as the operating base until the failure can only lead to stagnation. We can know the real cost is impaired, transaction size is large enough only in circumstances that can guarantee the sustainable development of this model, only large enough to be able to produce enough of the commercial aspects of the integration of tension, which according to its own criteria for allocation of resources, such as Wal-Mart purchases in the world and its procurement system. But this model has limitations: not a product adaptation, the more lives may be more adapted to the product, not any consumer is recognized that many consumers think that prices may be lower than good product, their own psychological conflict with this incentive, which rely on large-scale transactions and thus the price to achieve profitable manner in different countries, regions, stages of the actual results received are very different. But this model is difficult to really achieve, easy to fall into the "pseudo-scale" of the trap, leading to the transition competition. The foundation of future success factors in this business will show a very slight, when we buy the consumer level and in accordance with an important incentive to list the time to sort the ratio, you will find the elements of a group of very long, you'll find in this group Consumers are most concerned about is always a presence, the most important incentive is the value of the genetic DNA, the value of the gene that drives the company's core power. We will find the existing major retailers seem the same foundation of business Strategy behind it is a different gene. In fact, from the second half of 2003, Shanghai consumers have made careful phenomena such as Carrefour, Tesco and so there is a price increase phenomenon occurs, the most direct Experience is the "Carrefour is not cheap ah." Really cheap, or linked from the surface Chinese or other small community Hualian supermarket, and consumers tend to hold promotional posters to Carrefour to buy goods when it is found that in addition to posters on the label of cheap goods, other goods but surprisingly expensive. and quite a Carrefour store layout is currently processing a large part of the deli, the fresh cooked food prices because of the selling points and is no longer vulnerable to a direct comparison, Carrefour is not so much contrast in the hidden opportunities, as that consumed by Carrefour most consumers the price is not the major, so you can explain why there are so many daily traffic, and the amount purchased from a single customer can see the consumer to patronize a single purchasing Carrefour is a big amount, the amount is also high: why consumers to give up a few hundred meters away from home and even tens of meters entrance Lianhua Hualian Supermarket but do not

buy cheap goods to the relatively long distances by car Gubei Carrefour shopping? This is beyond the convenient and cheap key needs. When consumers do not only convenient and cheap as consumption reasons, those who provide these services to facilitate and supermarkets or chain of survival based on the super-MALL Experience great challenges: the scale is not the key indicators, so to facilitate the large scale of the 21st century still could not save his own life. from Beijing came to provide Information that those who blindly Super MALL project met with considerable resistance to the promotion, which also shows the other aspect of the value of real consumer demand of diversification, with Carrefour in Shanghai, as the value of consumer spending in the case of partition, regardless of what value are no longer the majority of universal significance - just cheap and expensive (in price-oriented consciousness of many other existence of other values, as it was from the traditional street shops to find out the store now, we compared with the previous format called modern format, but merely the modern format of the traditional business forms and there is a difference it? now appears Obviously not, otherwise there would not be such a clear industry profits partition phenomenon, you can see from the profits of the traditional and the modern reality of there clear partitions, all of them also lose money and make money there. So these so-called growth of the foundation of the modern format than we had perceived clearly the difference between the standard to be more broad, or the division of our previous standards of format is not the most fundamental, in fact, whether it is street clothing boutique decorated the Pacific Plaza, the Shanghai Xujiahui there are people who patronize the Italian brand, frequented the reason why many people choose, but there must be the best for him or her, an aspect of body center, such as those decorating special, with unique atmosphere of the store often causes women to enjoy the unique clothing and even on the unique vanity satisfied, every Jiejia leisure time you can find that the women dressed to the nines and out of these humble frequent the store, and the same, when you are in the same period of exposure to Xujiahui on the overpass, you will sigh good people coming and going to spend Pink passion, this enthusiasm is more linked with the environment, nearly a thousand small coat to meet the pursuit of luxury is the status of their inner Experience the arrogant position of the small mind, if brought together, said friend: This dress I bought in the Pacific, certainly very face, we also believe that such a small piece of clothing is absolutely normal value! Although women may feel better than the Pacific mall to buy clothes more suitable for a small store their gloves. But they will not pursue in their own unique psychology is satisfied after giving up a small display his luxurious coat means, though it little tops to be bought on the same day 20. This diversity not only in the same group between different individuals, and that is the same person at different times will also try to demonstrate this diversity, and when all the consumer groups took to the streets when all of a sudden, this Species differences enough to make you confused. If the value of the analysis of the genetic level, then the value of consumption in a small shop hidden nature, buyers care more about their real feelings, but the performance is in the Pacific is dominant enough to , influenced by the awareness group. How the existing players to play? When the value of all consumers in the price of the state for the gene to the way the price effect as the main means great value case of convergence of universal significance, because people do not have enough capacity to pay to support the diverse needs, this situation occurred From low to high levels in the life of the promotion process, such as the post-war development in the Western world and third world countries. If the economic level of the increase in the value of fission took place, China in particular. But now the whole of China Business faced with the unknown outcome of anxiety and turmoil, should be detailed analysis of factors behind this instability, I would rather call this instability as the process of China's economic development imbalances caused by the imbalance of the economy in consumer demand on the enhancement of diversity, this diversity in the level of performance of different regions, the order is not the same, that is the price in big cities like Shanghai, people outside the Carrefour enough to form a huge traffic, while in other areas may not, even if you have high prices into my inside to the mall or not to spend money to buy things. Tesco shop in Changchun business anniversary, a new day, it was almost out of control, low prices, or show in the northeast region Low take-all amazing power of high school. whether the Pacific or street shops, or Shanghai and Northeast China, the real big difference with these different aspects are structural. not only manifested in the region, the more the performance of passenger property classification of people, in fact, exist any consumer

market stratification, different is the quality of the individual layers (size and frequency of transactions and accept new awareness of the advanced nature of consumption patterns are different. From this point of view of commercial predators in fact the so-called spiritual foundation of their existence in the post-modern Western countries - countries that provide the commercial spirit of their existence, and its sustainable development lies in the majority of developing countries - when the West into mainstream society, when the personality, the process of developing the industrial civilization once again demonstrated its vision of childhood and the prime of life, and their development in the developing countries must also be present within the advancing of the situation. Different sectors of its market-driven is not the same core values, high technology, higher priced, more fashionable products of its starting level of people who often is this: Leaders - Leadership - follow up - the public - doubts. But not with In contrast, the general public start fast moving consumer goods market is in reverse: the doubt - the public - follow up - Leadership - Leadership, which is the value of two basic types of consumer products, diversified path. path different from retailers show consumers value is different, this distinction is becoming the key force of the retail industry. Now, let's examine a few representative in Shanghai retail terminal, you can not find the difference, from the positioning of the terminals on the consumer groups is not difficult to conclude that the current level of profitability of these enterprises and profitability, also from the distribution of consumer groups We can also be concluded that the situation of these trends and the future development of enterprises has a unique portfolio of competitive advantages to:

Retail Terminal

Consumer reason (the value of

Consumer groups targeted

Carrefour

Brand

50% 50% leadership leaders

Tesco

Interactive terminal

Led follow-up 50% 30% 20% popular

Lianhua, Hualian

Price

60% 40% suspected mass

Trust-Mart

Fuzzy

35% 65% suspected mass

Parkson

Status, quality

Leaders led 35% 65%

Wal-Mart

Industry standards (in terms of prices as the main form

Leaders to follow up 40% 15% 40% leading mass 5%

The value of these subtle differences, let us see more clearly the value of retail presence and value of space, but also be able to participate in the game for many who have found coping strategies designed to facilitate accurate long-term Business model that operated profit model. We can simply be a simple end-layered enterprise value: Although the value relative to the complex genome of this simple classification is not very clear, but as a tool for interpretation of the terminal company with its full significance has been. We will find the contents of the following laws: Carrefour: consumer packaged goods branding where companies can easily enhance access to products and corporate image, the only threshold is that there is money to be more prepared to Carrefour to fully understand the rules of the game. Carrefour Everyone knows that money is eating machine the brand is to be willing to do the input,

Wal-Mart: a good place for impulse, no not to resort to many other features, into the Wal-Mart you are to sellers of. Everyday life products, in broad terms, in short, you can buy the product or products do come in combination form digestion, Lianhua, Hualian: as long as the price to a minimum as is the impulse of the place, do not imagine doing anything else, such as brand image like a pack of lies, for the simple reason that does not have such a function, grain and oil custard sauce, vinegar, salt and drinking small articles of daily routine, etc., is the most specific necessities of the consumer sites, Trust-Mart: cheap but not the lowest free state, by bridging the Carrefour, Wal-Mart, Lianhua survival value of vacancies, the performance in terms of profit is a typical product structure model, this may be through the shipment as the main source of profit, the next possible to achieve by organizing an activity the purpose of profit, in short, profit is not fixed, the corresponding store from procurement to distribution and production techniques so DM can not find a single clear idea. Parkson: make the image, where the value is the value of luxury goods such as dominant main site, does not require sales, how to find a way to provide a more reasonable reasons and opportunities for consumption. For such a terminal, you need to prepare large the money should have enough patience, "Rome was not built in a day." In addition, such as Jusco presented in the form of the value of Qingdao, mainly in the form of value for the main business, while some form of service, product integration on the inside, such as restaurants and rest areas together with parking lots and unique design , the origin of such parking the car park settings and set the significance of Wal-Mart is fundamentally different, Wal-Mart is a kind of pragmatism is based on the civilian Population of the dock, then the charge on behalf of the Jusco show the significance of status, from here is very easy to understand the value of the difference between the two groups and differences, in short, the value of such high-end stores showed the formula is the "value of the + form = concept." Anatomy of the value of the development process, not only can explain why the failure of Carrefour in China, Japan and bright, this can be found in the Chinese retail industry to find some new way out. Carrefour body from what we see? Indeed, Japan's commercial circulation patterns and habits with Carrefour, Wal-Mart and other Western retail giants a relationship directly with manufacturers to reduce the cost of the practice of conflict, but this is only one of the problems, the main value that the consumer also has occurred the stratification to purchase price as the main incentive to change the situation, of course, the supporting factors behind this change is also inseparable from its form of social life: for example, women's relatively low level of professionalism, have more time to care for family and shopping . This is the industrialization of Western supermarkets, professional design into the mind of the Business model is contradictory, which is under from Western industrialized lack of commercial spirit is an important aspect, and the combined effect of these factors eventually led to Carrefour been defeat. Need to explore further the issue with a form of society in Japan for more family as the unit's work force reshaping the team of individuals is relatively small. It does not matter to the next for the Western industrial civilization, the value of the business to provide national identification basis. Carrefour could not be fresh, timely, personalized solutions such as a small amount, which sounded the alarm: the scale is no longer the only competitive advantage. When shopping malls have congestion, when the price of the main features of the inevitable patterns of consumption is a one-stop, every time you want it specifically for the purchase of goods sufficient to plan the amount does not work in Japan, in China definitely does not work for some people, these people will not work, or change in trend of the development will directly determine the The format of the overall development of the face. In fact, during the operation in practice, whether manufacturers or channel members are pushing the economy back from the format and consumption, so it is easy to get together to form the case, only to see the

phenomenon of floating on the water to the neglect of the most water The value of the fundamental perspective, tend to make the development of many enterprises to seize the main points of the homogenization of competition will go a lot of small and medium enterprises and retail giants face the level of competing for customers, so that in fact many retailers have been lost in the beginning the starting line, and open a shop in a store fire situation has become history. the Retail Business Development Planning Methodology from the value of the departure is to do an independent analysis of the market value, consumer value and business generally, including the analysis of two major forms specific indicators include the degree of commercialization, industrialization, the value of cognitive stage, and other key indicators such as business location decisions, flow characteristics, competitive environment analysis, etc., would be the key business segments, which requires specific business model design . Normal profit model design consists of three parts: industry profit of partition and the main profit model, elements of corporate profits, matching detection and optimization, profit model under various implementation options, such as Marketing programs, public communications, personnel management. Store the meaning of business model designed to grow with the musicians, is about the same: a musician is a step by step nurtured from childhood, first we must establish that identity philosophy: musicians, this is a design, and then began to create the conditions to cultivate children's ability, it is optimization, specifically the skills make up culture, or Music lessons, or Music that is the path of knowledge designed to find the master or general Music teacher, Professor This is a cost consideration, so that success is possible after a certain period of time a musician . If you really want to make money, we must now establish their own unique things.