In the afternoon, Li Guangyu received a piece of news that made him very unhappy. Carrefour and Wal-Mart had joined forces in Asia.
Currently, there are three major private retail groups in the world: Wal-Mart, Carrefour and Hengyu. Wal-Mart occupies the North American market, Carrefour occupies the Western European market, and Hengyu occupies the markets of South Korea, Japan, Baodao, Xiangjiang and Southeast Asia.
Now in Asia, maybe the Hengyu City Group suppressed the two companies too hard, so the two originally hostile groups began to cooperate to jointly deal with the pressure brought by the Hengyu City Group.
Moreover, this time Carrefour and Wal-Mart are full of confidence in joining forces and directly launch an attack on Xiangjiang, where the Lee Group is based, hoping to directly open a gap here and occupy the Asian retail market.
Since Jardine Matheson Group is currently facing considerable pressure, their Wellcome store that has been idle for half a year is currently leased to Carrefour and Wal-Mart at a relatively low price.
We must know that the layout of Huikang City stores in Xiangjiang is quite reasonable and can compete with Hengyu City Group and Watsons. If it were not for the financial resources of Yihe Group, it would be very difficult for Hengyu City Group and Watsons to defeat them.
Carrefour and Wal-Mart have their own market support and abundant supply channels. They are really not afraid of Hengyu City Group's price war.
The purpose of the top management of the two major city groups this time is very clear, which is to drag the Hengyu City Group's attention to Xiangjiang and slow down their expansion in Asia.
Once the Hengyu City Group completely occupies the Asian market, it will inevitably burn the war into their own market, and they will be in even more trouble. Rather than that, it is better to directly compete with the Hengyu City Group in the Xiangjiang market now.
For more than a year, the presidents of Carrefour and Wal-Mart's Asia affairs have been very frustrated. Every time they open up a market in a place, they will face joint attacks from the Hengyu City Group and the local city.
However, their own power and capital mobilization are limited, and they are simply unable to compete with the Hengyu City Group, resulting in successive failures in market development in various places.
Now the top management of their group has finally realized the seriousness of the problem and is cooperating here to jointly face the threat of Hengyu City Group.
In the conference hall of the Mandarin Oriental Hotel, Carrefour Asia President Victor Beer and Wal-Mart Asia President Oscar Jackson led their teams to discuss cooperation issues.
Victor Bill said: "Jackson, when I first came here to open up the market, I always regarded you as my number one competitor. I didn't expect that I was defeated by the Hengyu City Group without facing you."
He was very excited when he was asked by the group to develop the Asian market. At that time, Wal-Mart had not yet entered the Asian market. As for the local market in this region, he did not pay attention to it at all. Carrefour had only one enemy, and that was
Walmart.
But in the following time, the facts gave him a ruthless blow. In the Japanese market, he faced a joint attack by Hengyu City Group and Ito Yokado, and finally had to choose to withdraw.
In Baodao, they were also besieged and suppressed by the Hengyu City Group and the Uni-President Group. They persisted for half a year and had to choose to retreat.
In Southeast Asia, Carrefour also failed to benefit. The Hengyu City Group and local Chinese-owned families jointly attacked them. Currently, they are in a state of loss in Malaysia, Singapore, Thailand and other places.
If the group's top management hadn't been unwilling to give up the market in these areas and kept injecting blood into it, he would have had no choice but to withdraw.
Osfort Jackson did not expect Hengyu City Group to be so strong. This group has only been established for two years and has already occupied most of the markets in Asia.
And they are more worried than Carrefour. You must know that the headquarters of Hengyu City Group's 7-11 convenience store company is in the United States. Once Hengyu City Group's expansion in Asia ends, it will inevitably use the convenience stores there as the basis.
Expanding aggressively and competing with them for the U.S. market is something the Wal-Mart Group does not want to see.
This time they have joined forces with Carrefour in the hope of dragging Hengyu City Group's energy to Hong Kong and Asia, making them unable to expand in the United States.
As for Carrefour, they used to be their group's most important rival, but now this position needs to be replaced.
At present, if we look at market value alone, neither Wal-Mart nor Carrefour can compare with Hengyu City Group. It’s just that Hengyu City Group has always owned its own stores, so it can’t compete with them in terms of store size.
Compare.
However, in terms of profitability, the current situation of the three companies is similar. This is mainly due to their own better market economy. With the development of the Asian economy, this situation will soon change. In the future, the two city groups are likely to continue to work together.
You can't even see the back of Hengyu City Group.
Osfort Jackson said: "Bill, I used to think that the two of us would share the world in the city's retail field, but currently it seems that the best result is a three-point world. Maybe our two countries will be qualified to win consecutive points in the end.
None. The Hengyu City Group is notoriously powerful. This time we are in Xiangjiang. We hope to abandon our previous prejudices and cooperate sincerely to jointly deal with the suppression of the Hengyu City Group and Watsons to prevent us from ending up like Wellcome City.
The fate of."
Originally, the Hengyu City Group itself was not weaker than the two groups. What was even more frightening was that this group was backed by such a behemoth as the Li Group, so they had to deal with it carefully.
Fortunately, the Li Group's recent investments have been quite large, and its own financial resources should be strained. It will also give more consideration when engaging in a price war.
And this time they will not be stupid and continue the price war with Hengyu City Group like Huikang City. They have never thought of competing with Hengyu City Group in this form.
The advantage of their two city groups lies in the supply of goods. In this regard, they are richer than Hengyu City Group. They are not seeking to make money in Xiangjiang now, as long as they do not suffer huge losses.
Its only purpose is to drag the Hengyu City Group in Xiangjiang so that they cannot fully expand in other areas.
This time, all the original 18 city stores in Wellcome City were leased to them. Wal-Mart and Carrefour were divided into nine stores. The losses of these stores could not damage the overall market of the two groups.
The main reason why the two groups failed in the past was that they had too little autonomy and did not have much resources and financial support, so they had to choose to withdraw from the market.
It's different now. With the financial support from the group and allowing the stores here to suffer losses, they don't need to worry.
Victor Bill was filled with emotion about this. If the senior management of the group had paid attention to it earlier, he would not have been defeated so miserably in these areas.
But if they want to compete with the Hengyu City Group in Xiangjiang, they still need to think more about the source of goods. It is best to obtain exclusive sales of some brands, so that they can hope to gain a foothold.