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北京工商大学教授,商务部特聘专家

 
 
 

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中共党员,93级中国社科院博士,教授,商务部市场运行调控专家、国内贸易专家、电子商务咨询专家、农业部农产品市场流通专家、流通领域30年有影响力优秀专家、北京市优秀教师、中国市场学会副秘书长、中国商业联合会专家工作委员会副秘书长、中国商业经济学会副秘书长学术委员会副主任、全国高校贸易经济教学研究会副秘书长、中国粮食经济学会/行业协会常务理事、中国市场学会批发交易市场专家委员会副主任、中国肉牛经济学会专家组成员、全国农贸中心(批发市场)联合会常务理事、中国市场指导委员会副会长

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2014-01-26 21:15:17|  分类: 默认分类 |  标签: |举报 |字号 订阅

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DIA Group to withdraw from Beijing

Global Times | 2014-1-23 23:28:01

By Yang Jing

Spanish multinational supermarket retailer DIA Group plans to withdraw fully from Beijing in 2014 by closing all its stores in the capital city, and focus on Shanghai and surrounding areas, Beijing-based newspaper International Business Daily reported Thursday.

DIA had already started shutting down 18 Beijing stores that had performed poorly from July 2013, and continued to close more stores except for the top 38 in terms of sales, Tianjin-based newspaper Innovative Finance Observation reported Monday.

From early this year, DIA has also begun closing the 38 stores, according to the report.

This was not what DIA expected when it entered Beijing in 2003.

In June 2003, Shanghai-based Lianhua Supermarket Holdings and DIA opened their first joint discount store in Shanghai. DIA was part of French retail giant Carrefour until July 2011 when Carrefour spun off DIA and listed it independently on the Madrid stock exchange.  

DIA operates 450 stores under the DIA Tian Tian name in China in total, including 260 directly operated stores and 190 franchise stores, mainly in Beijing and Shanghai, according to its website.

In 2011, DIA had 80 directly operated stores and 80 franchise stores in Beijing, Innovative Finance Observation reported, noting the company had great expectations for the Chinese market.

DIA's branch in Shanghai could not be reached for comment by press time.

International Business Daily reported DIA's sales revenue in Beijing was only half of its revenue in Shanghai, citing an unnamed retail expert.

The performance gap may be attributed to the different consumption habits in Beijing and Shanghai, Liu Xiaofeng, an analyst at China Minzu Securities, told the Global Times Thursday.

Consumers in Shanghai are more sensitive to discounts but consumers in Beijing care more about the appearance of goods, Liu said, noting that as a discount chain, DIA Tian Tian stores sometimes sell products at low prices but with a less appealing appearance.

Meanwhile, Shanghai has a higher urban density than Beijing, therefore people are more used to regularly buying products from community stores such as DIA Tian Tian stores while consumers in Beijing tend to purchase in large supermarkets, said Liu.

DIA's stores in Beijing are generally larger than convenience stores but smaller than supermarkets.

The development of e-commerce, especially in first-tier cities such as Beijing, has also put much pressure on community stores and convenience stores including DIA Tian Tian, Hong Tao, a trade and economics professor at Beijing Technology and Business University, told the Global Times Thursday.

However, the fundamental reason of the chain's poor performance is the low quality of store service, Chen Yuefeng, a retail chain store expert and associate editor of China Chain Store magazine, told the Global Times Thursday.

DIA Tian Tian stores are in an unclear market position, Chen said, noting it is hard to name any attractive features.

According to Liu, compared with big supermarkets, DIA does not have much of a price advantage, and the store environment as well as its store staff service is poor, so it is no surprise their performance is poor.

Cheap store-brand products should be a feature of the stores but these products only account for a low percentage in DIA's China stores, Liu said.

In Europe and the US, 50 percent, or even as much as 80 percent of the products in DIA's stores are from the DIA brand.

However, DIA brand products only make up 10 percent in DIA's stores in China, according to the Innovative Finance Observation report.

Concentrating on Shanghai and its surrounding area cannot solve these problems, Liu said, noting the key solution for DIA is to improve its service quality.

Beijing is still a very attractive market for the retail industry because the total retail sales of consumer goods in Beijing in 2013 grew more than 10 percent, achieving in advance a target set by Beijing's government for 2015, Hong said.

Beijing has about 2,000 convenient stores serving over 20 million people, while Tokyo, whose greater metropolitan area has a population of 37 million, has 40,000, so there is still room for convenient stores to develop in Beijing, Hong said.

DIA's operations in China

Jun 2003

Shanghai-based Lianhua Supermarket Holdings and Spain DIA tie up to open the first discount store in Shanghai

2006

Lianhua pulls out from the partnership with DIA

2008

DIA launches franchise operations in China, allowing franchisees to operate its stores

2011

DIA owns 80 directly operated stores and 80 franchised stores in Beijing

Mar 2012

DIA China initiates DIA Price Basket Project, in which the prices of near 100 products were guaranteed to be lower than the average prices of non-promotional products sold in the convenience stores and supermarkets

2014

DIA is closing stores in Beijing

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