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The retail industry in Changchun

After the Reform and opening up, the retail industry in China has developed a lot as well as in Changchun. From Zhuozhan, Wal-Mart, Carrefour to some small supermarkets.
During the first half year, the whole city’s total retail sales have reached 224.741 billion yuan. An increase of 15.6 percent, 1.2 percentage points above the national average, had completed 46.7% of the annual plan. The first quarter. Retail sales of consumer goods increased by 16.1%.The second quarter, the retail sales of consumer increased higher than the national average. From the completed retail sales in absolute terms .The total quarter retail sales has reached 109.981 billion yuan, the second has reached 114.76 billion yuan. The total consumption has increased ,the size of the market is growing.
The first half of the year, in Changchun, large enterprises above designated sales show expansion and the growth rate had decreased .The total retail sale is 86.588 billion yuan. The proportion was 38.5% in the city’s total retail sales increased by 2.9 percentage points over the same period last year. Some large retail business still maintained a good growth rate: Changchun International Trade sales rose 47.1 percent, Paris spring, department store sales growth of 33.5 percent, Yanji department store growth of 33.3 percent.
The food and beverage revenue had grown rapidly, the first of this year, Changchun’s retail sales had increased steady, the sale is 201.805 billion yuan an increase of 15.1%. The pull of the New Year, Spring Festival, Dragon Boat Festival and other holidays, food and beverage market has maintained prosperity and active development trend in Changchun, showing rapid growth in food and beverage sales. The first six months, the accommodation and catering retail sales had reached 22.936 billion yuan. An increased of 20.4% , 5.3% points higher than the increase in commodity retail.
The retail industry plays an important role in Changchun. The flow of force is an important part of productivity. The flow of force refers to the circulation of the size, structure and marketing reasons. To operate the city must pay attention to the flow of force. Secondly, for a city, its commercial development should have the development norms. The key point of the norms must focus on the commercial form the layout. The so called commercial form refers to the commercial enterprise’s accumulation degree in a certain space of the city. Such as commercial streets, shopping malls, shopping square. We must pay attention to the reasonable layout. Then we must control the size of the business. Because a city’s population and purchasing power is relative. If the scale is too large it may appear the state of production without the city, leading to the effectiveness of decline. Finally, we need to cultivate the leading commercial enterprises.
But there is a big problem in the retail industry in Changchun .That is some “giant” had controlled the market. Such as Zhuozhan where sold the luxury in Changchun. Some famous brand like Jurlique is sold in it which is only sold in big cities such as Beijing, Shanghai, Guangzhou.
However, in my opinion, the price in Zhuozhan is much higher than any other places in China.
Another feather of the retail industry in Changchun is that since we enter the WTO in 2001, a lot of foreign retailers have entered China’s retail market. So the structure of the retail industry had changed a lot . The sales of Wal-Mat and Carrefour was ranked on the top of the retail industry. While the operating conditions of the local retail industry getting worse and worse. What’s worse, some of the small retail industry even collapsed under the big pressure of the giant retail industry.
So how can we handle this problem? The retail industry of a region is a big part of the economy. The development of the retail industry will do a great help to the development of the economy of this region.
We had a survey of the retail industry in Changchun, finding that there are some problems in structure, forms of organization, excitation, staff relations and so on.
Now I will give some suggestions about the development of the local retail industry in Changchun.
Firstly, Strategic Leaership: The sales target of the local retail industry was in a passive position. We must change this situation to turn to a optimistic position .They often formulate the sales target according to the price of the some product. As there are many limiting factors, we should take dynamic strategic other than the static strategic. The local retail industry should be aware of its own strategic type. For example: low price is the main topic for the multinational retail industry. The local retail industry can regard the middle and low customer as their target market. Secondly, the improvement of salary. The modern company should combinate the salary and organization goals. So that it can play to the enthusiasm of the staff to promote the development of the company quickly. Though job evaluation we can achieve the inner balance of the salary between the staff. It is the main method to decide the inner fair. We should put the work content or the degree of the skill complexity as the basic to decide the high and low degree of the salary. By this method, the company can attract more talented people. Thirdly, hardware conditions: the hardware conditions include the location, environment, traffic, welfare and so on. The retail industry’s main goal is to offer the necessity of the common people to consume the daily consumer goods. Then the location is the most important factor for the performance of the retail industry. Also the size of the market, the traffic can influence the performance of the market. The market should placed the location of the shelf spacing and import and export arrangements shelf according to the size and the traffic. Pay much attention to the checkout. We should increase the number of the checkout according to the consumers, so it can offer more convenient services thus enhancing the corporate brand and increase sales. Fourthly the improvement producing methods: Wal-Mart is a retailer but not a producer. Its produce method is the choice of the supply choice and distribution which made Wal-Mart in a good position in
So we small retail market should learn this point from Wal-Mart.
This are some suggestions about the development of the retail industry in Changchun. There is still a long way for the retail industry in Changchun to go. To have a bright future we need to recognize the problems and find out the method to handle the questions and learn the advanced method and strategy from some multinational retail industry and discussed the good technique to sell your goods and create their own brand.