Not everyone is as courageous as Li Jianhui. Perhaps it is because the Xin Jian Department’s aggressive offensive in the retail department stores in Canada and California was too fierce. In order to distract the Xin Jian Department’s attention, as a pawn of the American consortium, Lotte Supermarket made a high-profile announcement in May.
Enter the Xiangjiang and Baodao markets.
This time Lotte has gained considerable momentum and has built the first batch of ten large supermarkets in Hong Kong, covering Central, Mong Kok, Hung Hom, Tseung Kwan O, Tin Shui Wai, Shatin and other central urban areas.
The Baodao side is even larger, with as many as 30 stores in the first batch, and there are Lotte Supermarket stores in every county and city.
Facing the menacing Lotte, on the first day of collecting counterfeit goods, Li Jianhui held a joint meeting of its retail companies in the conference room of Tesco Group.
As the acting director of the Xinjian Department’s Internal Coordination Office and the person in charge of Greater China, Liu Xiaoyan presided over the meeting and made arrangements for the attack on Lotte Supermarket.
"Li Sheng, colleagues, since our main focus is on Greater China, Southeast Asia and the Commonwealth market, very few of our industries have entered the Korean market, except for a few markets in Southeast Asia and South Korea's two major industries of retail and automobiles.
Apart from some competition, there are no major disputes, and the relationship between the two parties is relatively not too bad.
It’s just that this time Lotte announced a large-scale entry into the Baodao and Xiangjiang markets, which is obviously aimed at us.
This time we not only want them to retreat despite the difficulties, but also enter the Korean market on a large scale. While expanding our market, we also teach Lotte a lesson."
After Liu Xiaoyan's words fell, senior executives from Lane Crawford, Watsons, Tesco, IKEA, Cosway, and Berjaya Department Store successively expressed their willingness to enter the Korean market.
In particular, Cosway's reasons are quite good. Because of their national characteristics, Korean and Japanese citizens still buy more products from their own countries.
As for Cosway's membership discount stores, its model is different from that of Korean local retail department stores, and it is easier to enter. The Japanese market is also used as an example.
Lane Crawford and others obviously do not want to give up this opportunity to expand. They also take the Japanese market as an example. As long as they cooperate with Korean families, several major companies can also seize the Korean retail department store market. Currently, Lane Crawford and others have established a joint venture with the Fuji Foundation.
Several major Japanese retail companies are developing well.
IKEA convenience stores are already the second largest retail convenience stores in Japan. Currently, only 7-11, represented by Ito-Yokado, a subsidiary of the Mitsui Foundation, can suppress IKEA convenience stores.
Lane Crawford has also become the third largest retail department store in Japan after Ito-Yokado and Seibu Supermarket.
Watsons and Tesco Electric Appliances are also developing well, and both have entered the top ten in Japan's retail industry.
However, Berjaya Department Store and Cosway immediately put forward different views. The main reason is that Lane Crawford only holds 36% of the company's shares in Japan, Fuji Group holds 35%, and Quanyuan Holdings holds 29%.
Although Quanyuan Holdings is also a Xinjian-based industry, Quanyuan Holdings is a company registered and headquartered in Japan. These major Japanese retail companies are essentially controlled by Japanese capital, so their development is not greatly restricted.
However, Xinjian Department does not have a holding group in South Korea, and it is impossible to follow the Japanese market model.
Moreover, Cosway and Berjaya Group are registered and headquartered in Kuala Lumpur, and they are backed by the Malay government. In this regard, Lane Crawford and others do not have it. By then, Cosway and Berjaya Group will be less likely to be targeted in the Korean market.
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After everyone calmed down, Li Jianhui spoke up: "I have discussed with Ms. Liu about dealing with the menacing Lotte. This time, Lotte will be attacked in Xiangjiang and Baodao, with Lane Crawford, Watsons, IKEA, and Tesco as the leading companies.
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As for entering the Korean market, this time it will mainly focus on Victory Department Store, Cosway and Dongquan Retail Group, which will be established under Quanyuan Holdings Group.
Tang Jianming will serve as the president of Dongquan Retail Group and coordinate this operation. All senior executives must closely cooperate with Tang Jianming's plan."
For future development, Li Jianhui also took great pains to establish Dongquan Retail Group in order to later allow it to control companies such as Lane Crawford in Japan to prevent the development of these industries from being affected by the holdings in Xiangjiang.
In addition, this time Dongquan Retail Group is also planning to cooperate with Korean families and establish joint venture retail companies in South Korea to compete with Lotte for the market.
The entry of Cosway and Berjaya Department Store into the Korean market this time is mainly to disrupt the situation. The real killer move is the retail enterprise jointly established by Dongquan Retail Group and a Korean family.
Moreover, Li Jianhui has already chosen the partner for this cooperation, and that is the Park family of Doosan Group, which is currently developing quite well in South Korea.
Unlike Hyundai, Samsung, Daewoo, Hanjin, LG, Hanwha, Lotte, SK, etc., which have good relations with American consortiums, Doosan Group was very active during the Japanese occupation, and therefore had a good relationship with Japanese capital. On the contrary, it had good relations with American consortiums.
There is some alienation, which is why Doosan Group has not been able to develop as well as Hyundai, Daewoo, Hanjin and other companies in recent years.
Li Jianhui is preparing to cooperate with the other party this time, focusing on the relationship between the other party and Japanese capital. Moreover, the other party is currently mainly involved in the machinery manufacturing industry and has not entered the retail industry. This provides a basis for cooperation between the two parties.
Although Lane Crawford and other senior executives are somewhat reluctant, Li Jianhui has decided that they dare not object and can only focus on the North American and Central and Eastern European markets, hoping that these two places can bring good growth to the company's performance.
As for the menacing Lotte, these executives are not too worried. In the Hong Kong and Baodao markets, they have attacked world-renowned retail companies not once or twice, whether it is the world's giants Wal-Mart, Carrefour, or the well-known Asian company Ito-Yokado.
Seibu Supermarket, including Wellcome, 7-11, and Xinjian Retail ultimately gained the final market dominance.
Nowadays, the layout of several major retail stores in the two places has been relatively complete. It would be a good thing if Lotte doesn't come. Now that it is ready to enter, it will inevitably suffer a bloody blow.
Even though Lotte is known as the Korean giant, Lane Crawford and others don't pay much attention to it. Except for Cosway, the market value of any of these major companies can surpass Lotte.
At present, Korean families do not have the strength of the 21st century. Not to mention the ten major families in Xiangjiang, even the five major families in Baodao can suppress each other with capital.
This is also the reason why these families in South Korea are not as tough as Japan and the Xiangjiang family. The leaders of the Korean families also know that if they do not cooperate with the United States, their industries may be trapped in the local market. They will not have the strength to compete with Japan and the Xiangjiang family.
Industries compete for the market.
With the support of American capital and technology, South Korea has the capital to compete with Asian and Japanese companies, especially in the heavy industry and electronics and semiconductor fields. Its lower cost is enough to take away a piece of the share occupied by Japanese companies.
Meat.
As for Xiangjiang, it can still compete in electronics and semiconductors. In the field of heavy industry, Xiangjiang is far behind South Korea.