Wednesday, October 22, 2014

All powerful supermarket chains in China?

Since I came back to China after many years, I noticed some main changes.
One of these change is certainly the position of supermarket chains in China.
Huge supermarket chains such as Wall-Mart, Carrefour, or Chinese chain Bubugao got more powerful.
They extended their sphere of influence, following a trend that we have all seen in the west.

From importer and distribution in supermarkets to local franchise shops.A few years ago these huge company would only import goods, distribute them in supermarket.
Today they target local customers. They develop a network of franchise shops everywhere.
Doing so of course they kill all the independant shops, offering a wider product choice.
Today there is less and less opportunities to develop your own small business, unless you invest in a franchise shop and follow the "supervision" of some huge supermarket chain.

Controlling shopping malls: leaving no choice to shops.In China shops have less and less choice to find good commercial space. They need to rent inside a shopping mall or not at all.
First supermarket chains occupy the place. Then they build and develop. After that they rent to commerce. The rent is often over-priced. Thinking about it, it makes sense, a shopping mall will benefit more if commerce don't stay for too long, but keep changing frequently! Constant novelty attracts customers: Chinese customers want new things.

Supermarkets in China even provide their own free buses for shoppers.