Biyide withdrew from the Chinese market

Biyide, a leading German supermarket chain, has officially announced its withdrawal from the Chinese market. In this fierce market competition environment, what is the reason for its exit? It comes down in several ways.

Firstly, although China has a large population and a huge market. But the Chinese market is still highly competitive, and the market environment is changing rapidly. Before the outbreak, the supermarkets had their own markets. And an epidemic has also led to a change in the market landscape. The epidemic period in Shanghai is a typical case study. After three months at home, each leader formed a new channel with goods. Everyone in the wechat group with the head of the group purchase goods. I thought that the epidemic was over, and this pattern would return to what it was before the epidemic. But the regiment-headed group was still there. Group buying formed after three months of the epidemic has been extended until today. The owners of the shops along the street also kept up with the new sales model. Men and women squat in the group every day to wait for discounted goods. The goods on sale tomorrow morning can be ordered in advance tonight, and the store will pick them the next day. And some large supermarket chains may not keep up with such a fashionable sales strategy.2. Large supermarkets are difficult to transform, and the supply chain is lengthy. Medium-sized private supermarkets are flexible in operation. Most people adopt the shelf sublease mode. Each module is contracted to different suppliers for their own responsibility. So one of the module management can not go down will naturally eliminate and replace other businesses. Supermarket owners do not lose money at all. Because their monthly rent is normal. At the same time, the owners of neutral private supermarkets will put seasonal products at any time according to the season, and for some products with slow sales will be bought and free activities in time. At the same time, different supermarket main shopping groups have obvious boundaries. For example, the supermarket across the school is at the day.

Secondly, Biyide's products are too fixed, those all year round. Its most prominent advantage is the low price. But consumer consumption is replaced at any time. They buy not just low prices, they need a wealth of goods.

#Supermarket #supply_chain_management #China_market