With the full liberalization of the retail industry

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With the full liberalization of the retail industry, the rapid expansion of multinational giants, regional retail brand is facing unprecedented challenges. In Taiyuan, Shanxi, U.S. special good for Wal-Mart's In the retail industry, More and more facts have proven: With such as Wal-Mart, Carrefour and such international giants began to business expansion, a large number of local regional retail brands suffered unprecedented pressure from the regional advantages of long form is also Strategy overshadowed.

U.S. special good supermarket chains operating in Taiyuan, 8 years, the development of the 6 chain, has become the local leading retail brand of Taiyuan. In recent years, the U.S. special format with advanced forms of good,Bailey UGG boots, flexible pricing strategy and method of operation close to local folklore, the international retail brand withstand the threat of invasion.

2005 年 3 31, Wal-Mart to the ... ...

As a general rule, Wal-Mart storm Taiyuan, the use of brand and scale advantages, deep channels, the price war, and launch the product in accordance with local consumption habits, Taiyuan shape over the years all the local supermarket channel, the product and other regional advantage will fade overnight, the market will eventually encounter the fall (but to varying degrees) of the predicament.

But the story is often moving in the direction of unexpected people. Taiyuan U.S. special good German supermarket group's chairman reservoir shared with reporters a series of data: According to statistics, 31 March 2005, Wal-Mart's 45th store in China opened in Taiyuan, Shanxi, Taiyuan, the day a total of more than 80,000 members of the public to patronize the new store, this global giant. But a year later, the U.S. special is still good to six large supermarkets and convenience stores, dozens of scale to become the industry leader, U.S. special good sales last year more than 1.3 billion, while Wal-Mart opened from April 2005 to accounted for only 2 million or so late, Hualian nothing but 300 million. The first place regional brands to its name.

strategic victory,  McMillan to win the customers into low-cost positioning Est-Est (price), convenience-Est (service), fast-Est (speed), rich-Est (product selection), pop-Est (fashion). Wal-Mart is the perfect example of cheap-Est. Wal-Mart's efforts are all low in order to strengthen its leadership position,

in the country, mainly Competition supermarket prices and types of goods, Wal-Mart to enter the market, competitive advantage is obvious Taiyuan. In fact, Wal-Mart does give the U.S. special and good local retail business is very great pressure. On price, Wal-Mart has Wal-Mart is not invulnerable, however

. Wal-Mart's centralized management, system of rules,cheap UGG boots, pay attention to a high degree of unity, the right concentration. In this way the power manager is very limited. The problem appears, the purchase price in a unified, uniform commodity prices, uniform rules of the game dominated margins,UGG shoes, Wal-Mart's business slogan can only be U.S. special good small boat U-turn, may at any price adjustment, change in price is more flexible. Weaknesses against each other, the U.S. special good that Chu Tak Group, said: especially good is higher? consumers will not understand. We can just take the opportunity to force, U.S. special good and dedicated staff to investigate Wal-Mart price of similar goods, as long as does not involve dumping, even if we are to lower the price Biwoerma 1 angle is victory. U.S. special good also promised to make cheap, as long as consumers buy similar products at lower prices, to be compensated many times over by virtue of the relevant notes.

Diversified, low-cost but also profitable

economist Li Yining has told such a story. Two people to travel to the countryside, I heard the tiger's howl. The desperate, a man up from the backpack to get out of sports shoes, sports shoes wanted to run into. Another man asked: Having swiftly ran. This is a comparative advantage, wearing shoes and wearing sneakers has an advantage, however, another leisurely off the shoes, climb a tree. Result, the tiger will not climb trees to catch forward who wear shoes, he runs fast or run, but then Tiger ah. This is the continuing comparative advantage, sustainable advantage can be maintained will be able to win the final victory. Chu Tak group had to reflect the story that U.S. special good market situation faced, he said: ability, if Wal-Mart cut prices,bailey UGG boots, the comparative advantage would be gone. in order to tie down deeper roots in the region, continuing the first, the key is to master 'the tree' skills, the real cost leadership, not by the expense of profits.