Wal-Mart strives for improvement

In the Wal-Mart's China headquarters in Shenzhen simple three-story, a humble certificate posted near the elevator at the side of white wall. Certificate issued by the Wal-Mart's headquarters in the United States each year on a global scale is only granted to an outstanding supervisor, winner is Wal-Mart's head of regional operations in Asia Hatfield (Joe Hartfield). This certificate represents not only the performance of the headquarters of the Asian region, certainly, but also means that top management of the operating style of Hatfield sound recognition.
     Indeed, Wal-Mart shop in China, the impression is strong, almost conservative, and the lack of "Fortune" Global 500 of the first momentum, while only one third of its global scale, Carrefour seems to be in blossom everywhere, particularly in is the mega-cities such as Shanghai and Beijing-based sites in excess of the speed and scale of Wal-Mart, will get more turnover, is also superior in terms of influence. However, Hatfield seemed unmoved, continues to act in an orderly manner. "We strictly abide by Chinese laws and regulations on the shop at the same time, we have been laying the foundation for the future," Hatfield pairs of Fortune (Chinese version) said.

     Wal-Mart is based in Shenzhen in China. In 1996, Hatfield in command of the China headquarters from Hong Kong moved to Shenzhen, followed by Wal-Mart in Shenzhen has established China's first shopping mall and Sam's Club stores. Currently, Wal-Mart shop in mainland China, a total of less than 40 in Shenzhen accounted for 11, to firmly take hold outside of the local's largest retailer, the throne, while the Carrefour stores in Shenzhen, a meager 2, influence and even better than 10000, a new good such local retailers.

     Wal-Mart in Shenzhen is also a test laboratory in China. In addition to Wal-Mart stores (discount stores), the Wal-Mart in a few years in succession the shopping plaza (large supermarket), Sam's Club stores, and community stores in Shenzhen to introduce the full three models, "test the waters," the mainland market. Wal-Mart shopping plaza for the average consumer, is widely regarded as the most potential for development of the retail model, proved to be China's major cities are subject to approval; Sam's Club stores for the company and high-end customers, is currently in China did not develop smoothly; Wal-Mart Neighborhood Markets in the U.S., time is not long, the insufficient number of 100, is still a new thing. 2002 and 2003, Wal-Mart stores in Shenzhen, were opened in two communities. "Our goal for the community shop to a large extent also in the future location, size and variety of business accumulating experience," a community store manager. Wal-Mart stores common feature is great. In accordance with the Chinese government's definition, an area of 6,000 square meters of the shops are large supermarkets, but Wal-Mart shopping plaza (species is usually not less than 15,000 species) and membership stores (about 4,000 kinds of species) single-store business area is usually not low than 1 million square meters, even one the size of a community shop has also reached 6,000 square meters. In the whole of Shenzhen, more than 6,000 square meters of retail stores, but a total of forty or fifty homes.

     Like with the world, Wal-Mart in Shenzhen to attract consumers, the main reason is price. As a local business is more developed, so the company asked the overall price of goods has remained 5% lower than competitors in order to remain competitive. In the Wal-Mart shopping plaza, you can buy 199 yuan price of digital camera, 299 yuan DVD players, and that these two products are exclusively for Wal-Mart, manufacturers, suppliers, local companies were two U.S. . A Sam's Club store manager pointed to swimming in an aquarium inside, the price of 208 yuan per catty Australian lobster, told reporters that "In addition to the wholesale market, it's difficult to find a lower price than the fish here." The members of the Lunar New Year on the eve of a record shop in Wal-Mart has nearly 5,000 stores in a single day sales records.

     Wal-Mart in China, Shenzhen is also set up two distribution centers in the world (the other home in north China's Tianjin). Currently, Wal-Mart store non-food commodities through the completion of the country's procurement system, while China accounted for a significant proportion of goods purchased by consumers for food procurement can only be accomplished through local, to ensure that the local special needs. In 2003, Wal-Mart's global procurement center in Shenzhen settled down, becoming the first company to set up purchasing centers in China's super-retailer. It is reported that Wal-Mart will stop within two years, the procurement outsourcing, will all tasks entrusted to the procurement center in Shenzhen. All this also contributed to Shenzhen in the global business empire in the weight.

     Pairs of Hatfield, the significance of Shenzhen, is to make Wal-Mart's Chinese consumers really understand the great differences that exist between. Shenzhen is a city of immigrants, consumers from around the country, tastes and spending habits vary widely. "Can you imagine Wal-Mart store in Shanghai, Shenzhen, snacks and cooked food sold so please? In fact, different provinces in China, and even in different cities of the consumer will have a great difference in this unique market in Shenzhen in our good for the development of other places, "is responsible for operations of Wal-Mart China President and Ka Yeung said. Now, Wal-Mart in the southern city of shampoo sold more than 600 milliliters of large packages installed, while in the winter cold, hot water in short supply north, then changed to 30000 standard-sized, because "relatively few northerners taking a bath , "one manager said.

     However, Hatfield said the Shenzhen for eight years, the biggest gain access to local talent. Now, Wal-Mart's 38 stores, general manager of all from the local people, the Wal-Mart China's 20,000 employees, foreign employees have only six. "If you have to talk about our years of slow development, then it is because we focus efforts in the development employee, they are the basis of the company's future, while the management of the worst things than Destructive Enthusiasm," he said. Into China eight years, Wal-Mart's "standard operation" to obtain the government's praise. From Wal-Mart's data show that opened a store in its major cities in China, Wal-Mart were as honest taxpayer in accordance with law, has just opened shop a few months, Beijing has been chosen as a model for their stores health, while the Xiamen branches because of "SARS" period with the local government to stabilize prices, access to the "National Anti-SARS advanced units" in the title. A few years ago, the People's Bank Head Office requirements shopping mall stopped issuing cards on the grounds that "to prevent tax loss and corruption", but today Wal-Mart, one of the few (if not the only one) is still in compliance with this rule of retail business. The face of interests, Hatfield practice is in accordance with Chinese rules and regulations "to reflect the situation above, with a view to the Government to formulate a benefit to all, everyone can abide by the rules."

     For retailers, the December 11, 2004 it appears that the is a special day. Because since that day, the Chinese government would abolish the foreign equity in retail trade in the region and the investment restrictions. However, when asked about the day Wal-Mart in China, the unmarked meaning, Hatfield is still the answer was "steady," "After the end of the year, we will have more choice."

     Conceivable options include Wal-Mart to open more branches, geography also will not merely be in the provincial capital and special economic zones, growth patterns and even local retail enterprises will consider mergers and acquisitions, and so on, but more willing to emphasize Hatfield is "In China, Wal-Mart is not the blind pursuit of the scale, all depending on the company's specific situation and market demand." Hatfield declined to China's current business, profit and loss, but said management request is to open one store each must be profitable.

     Hatfield is the most reluctant to answer the question compared with Carrefour. According to an official Chinese statistics, Carrefour sales of 134 million RMB, ranking the fifth in 2003 China's retail industry, ahead of Wal-Mart. In the eyes of Hatfield, this figure is only a two-day equivalent of Wal-Mart's global revenues. The implication is: multinational retail companies in China, competition has not really started, how to talk about victory or defeat! Hatfield said, "As China's economy sustained rapid growth, consumption has increased as well as Wal-Mart's robust growth, I believe that Wal-Mart in China's growth rate will exceed the level of the preceding eight years."
 

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