Chapter 1359: Strictly abide by the East China Market
This time, it can be said that these companies are Sima Zhao’s favorite. Everyone knows that, especially the major retail groups in the United States, they have been unwilling to be blocked by Hengyu Supermarket Group and multiple groups in their local market, preventing them from expanding globally.
Now that the subject and the customer have shifted, Hengyu Supermarket Group and its allies have become the overlord of the entire retail industry, which will naturally attract attacks from other retail groups. Any retail company with a little bit of ambition will think of taking over Hengyu Supermarket, South China Electrical Appliance Chain Group, etc.
Drive them out to expand your own industry.
On the morning of the second day after returning to Xiangjiang, several high-level meetings of major retail groups were held in the third conference hall on the second floor of Wheelock Building. Watsons and the president of Hsinchu Supermarket were also invited to attend the meeting.
When Li Guangyu, Cao Weiqing, Fujiwara Huiyin, and Qin Jiao entered the conference hall, senior executives of several major retail groups and the two presidents of Watsons and Hsinchu Supermarket were already waiting for their arrival.
This time Wal-Mart, Lotte, Guomei, Shulin, Huarun, etc. are coming fiercely, and their key layout areas are East and North China, preparing to seize the market share occupied by Hengyu, South China Electric, Hsinchu Supermarket and other groups in these areas.
At present, the fastest growing areas in the mainland are East China and South China. South China is mainly the Greater Bay Area. In these areas, the markets such as Hengyu Supermarket and South China Electrical Appliances are quite stable. It is not easy for the other parties to seize the market here.
On the contrary, the economy in East China and North China is equally fast. Although Hengyu Supermarket and South China Electrical Appliances also occupy a relatively large market share, they are far unable to compare with South China. Wal-Mart, Lotte, Huarun, Hualien, Shulin and other joint stores
It seems that it still has the strength to wrestle with the retail groups owned by the Li Group and its allies.
Qin Jiao, who is the person in charge of Li's Consortium's affairs in East China, North China and Northeast China, expressed her views after the heads of several major retail groups completed their reports.
"Li Sheng, since we have been focusing on the layout of South China, East China, and Southwest China, we don't need to worry too much about the East China market. On the contrary, we have relatively little layout in North China. I guess the other party's expansion in the East China market is fake, and they only need to seize the North China market.
It’s true.”
The major companies of the Li's Consortium have been following Li Guangyu's plan in recent years, focusing on the markets in East China, South China, and Southwest China. This has resulted in the relatively weak influence of the Li's Consortium in the north.
As for why such a situation has occurred, the top management is also very clear. The main reason is to leave room for development for some mainland enterprises, especially those public enterprises, which are monopolized by the Li Group and its allies' retail groups like those in Xiangjiang.
The retail market is expected to be in big trouble by then. You must know that the leaders of some mainland companies are very high-level, and it is unrealistic for the Li Group to establish a monopoly there.
The gas station layout of Xiangjiang Petrochemical Group is now trapped in the markets of the four major municipalities as well as Guangdong Province, Jiangsu Province, Zhejiang Province, and Sichuan and Sichuan Provinces, and it can no longer take the next step.
One of them is the lowest price. Xiangjiang Petrochemical Group has to accept the guidance of the mainland government in terms of motor vehicle fuel sales. Its price is similar to that of several mainland companies. It does not mean that Xiangjiang Petrochemical Group can sell it however it wants.
In addition, the markets in other regions are almost the same as those in mainland China. If Xiangjiang Petrochemical Group enters, there will not be much profit to speak of.
After all, Xiangjiang Petrochemical Group also has a policy that the coverage rate of gas stations in each province, city, and town must exceed 30% to 50%. This was revised to 50% the year before last. Only when the coverage rate reaches 50% can it enter the next province or city.
This has caused Xiangjiang Petrochemical Group to stop moving forward.
After all, the other party has already occupied the market. It would be better to enter the city at this time. If the market is too small to support two gas stations in towns and villages, it will only cause losses for both parties. For this reason, Li Guangyu just asked Xiangjiang Petrochemical Group to deeply explore the current market.
.
Li Guangyu said aloud: "This time, no matter whether the other party is feinting or not, we will be prepared in the East China market. We will definitely not let Lotte, Wal-Mart, Huarun, etc. gain a foothold. If possible, we will also squeeze out Hualien, North China market and Northeast China."
The market will let these groups fiddle with it, and we can just keep our current store there."
Li Guangyu still chooses to focus on the East China market. Eating too much will strangle him to death. The major markets of North China, Central China, Northeast China, and Northwest China are reserved for domestic retail groups. The Li Group has also laid out provincial capitals and
Prefecture-level cities and counties basically have no layout.
Of course, this mainly refers to Hengyu Supermarket. Huanan Electric has already extended its presence to various counties, and there are also Huanan Electric in some central towns.
7-11 is also accelerating its layout. In the future, except for a few areas, every town and town will have a 7-11. The reason for this is for express delivery services.
There are currently four major logistics companies under the Li Group, namely Hengyu Logistics Company, which mainly serves Hengyu Supermarket, 7-11, and Xuelan Supermarket, and South China Logistics Company, which mainly serves South China Electrical Appliances Chain, Chunghwa Electric, and Phoenix Group.
Hongmei Logistics Company mainly serves Hongmei Property Management Company and several major clothing groups.
The fourth logistics company is independent of the group and mainly provides logistics services for other groups. This group mainly provides large-scale logistics and does not accept small items. It is also building large-scale logistics parks in major cities in the mainland.
As the director of the Internal Trade Coordination Office and the head of several major retail groups, Keiyin Fujiwara naturally hopes to squeeze out the Hualien Group, which is entrenched in East China. However, the other party's backend is quite strong. It is unlikely that they will squeeze it out of the East China market.
Reality.
She said aloud: "Li Sheng, we will never let Lotte, Wal-Mart, Huarun, etc. gain a foothold in the East China market. Although Shulin is a local company in Jiangsu Province, the other party has introduced American capital, so the nature is different.
Now, if we do some public relations, some of Shulin’s advantages will no longer be there. As for the Hualien Group, it seems very difficult to squeeze out at the moment.”
Li Guangyu naturally knows where the difficulties mentioned by Fujiwara Huiyin come from. There is nothing he can do about it. Now he can only limit the development of Hualien within a certain range as much as possible.
As for Shulin, as a local enterprise, he would have enjoyed certain benefits. This time with the introduction of Merrill Lynch Capital, the nature has changed, and some supporting policies will no longer exist. Li Guangyu is planning to squeeze Shulin’s living space this time and let him
Go to North China or Central China to compete with Guomei, especially in North China, where Guomei is now gaining momentum. The market share in North China is almost one-third of that of South China electrical appliance chains.
Although the South China Electrical Appliance Chain is not focused there, after these years of development, the North China region is still developing well. It is quite good for the other party to have such a speed.
Of course, Guomei's rapid expansion cannot be separated from some financial support, especially the major Japanese electrical appliance groups, which mainly cooperate with Guomei. The South China Electrical Appliance Chain is not very friendly with the major Japanese electrical appliance groups. The main ones here are Chunghwa Electric and
Mainly Datong Electric.
This time Fuji Bank once again took a stake in Guomei, which is also the development need of the Fuji Consortium and its allies. When they enter the mainland for electrical appliances, they can only choose Guomei at present. The South China Electrical Appliance Chain with the widest channels cannot deal with them. The development of Shulin has just started, and
The difference between fruits and plums is too big.
Everyone knows how huge the mainland market is. What is needed most now is channels, and retail groups undoubtedly occupy a dominant position in this regard. The current retail market situation in mainland China has not yet taken shape, and now is the time to compete for the market.