Another traditional retailer and Internet giants in hand.
Carrefour announced on January 23 that Tencent and Everbright will make potential investments in Carrefour China. This strategic cooperation will combine Carrefour's retail expertise with Tencent's digital technology and innovation capabilities.
However, the three parties did not disclose the specific amount of investment and share structure, Carrefour said that 'the above strategic cooperation and investment still need further due diligence and the parties agreed on the final document terms' and received a letter of inquiry from the Shanghai Stock Exchange Yonghui same Said that the company plans to invest Carrefour stake in China and the estimated amount of investment is not yet determined, and Carrefour's content and mode of cooperation for the moment.
The only certainty is that Carrefour will remain Carrefour China's largest shareholder.
Compared to other competitors, Carrefour's actions have lagged behind.Currently the domestic market share of the top five retailers (refer to Kantons consumer index data), Carrefour can be said that the only one go it alone, the other four Home with Ali, Tencent, or Jingdong has in-depth cooperation.
Carrefour has always wanted to cut through the self-help approach to the new retail cakes, but fell steadily, bargaining chips will also be reduced, placing themselves in a more passive position, according to "Caijing" magazine, in the Before the negotiations with Tencent, Carrefour's target was Alibaba, and the program is not an investment stake, but Carrefour China as a whole to sell Ali, but the two sides failed to reach an agreement, but Ali denied having conducted negotiations with Carrefour.
Ali or Tencent, have accelerated the recruitment of soldiers in the retail space, in addition to one of the alliance, the traditional retailers whether there is a third way?
Will not sell
In 2012, Carrefour China president Don Carian speak fluent Chinese, just after the New Year's Day in 2018, he met with Gu Guosheng, director of the Shanghai Chain Store Management Institute, conclusively reiterated that Carrefour will not leave China! '
A few days later, foreign media revealed that Carrefour plans to sell its business in China, but it was officially denied by Carrefour China. In fact, the sale of rumors spread from 2009, when Carrefour's leadership in the Chinese market was later Martha Subversion, and since Don Chia took office, he has to deal with a similar scandal almost at some time. "The best way we can respond to rumors is to do the best we can in our own hands. We can not comment on the recurring rumors of sale." In 2013, he answered the same question.
However, Carrefour China did not do as they wish, but more and more difficult.
Data show that in 2016, Carrefour's sales in Asia fell 3.8%, operating profit loss of 58 million euros, of which Mainland China same-store sales fell 7.6%; in 2017, Carrefour's global performance is growing, but China's performance is Fell 5%, Carrefour is the worst performing market in the world. "Kind consumer index" shows that as of June 16, 2017 of the 52 weeks, Carrefour in China, modern access roads (including supermarkets, supermarkets and convenience stores ) Had a market share of 3.3%, down 0.1% YoY, while Yonghui, which followed, increased its market share from 2.6% to 3.1% in the past year, which is equal to the fourth position of the former.
No wonder rumors will wave like a wave.
However, from the current situation, Carrefour China will not in the short term, as Tesco commissioned Vanguard, as completely overwhelm the Chinese market to others.
Carrefour's announcement shows that through this strategic partnership, Carrefour will increase its online exposure, increase traffic to its online and offline retail businesses, and leverage Tencent's advanced digital and technology expertise to develop a new smart retail program. Data, smart retail, mobile payments, in-store experiences and data analytics.
These measures complement Carrefour's global strategy, and Carrefour's announcement to "Chinese entrepreneurs" shows that on the one hand there will be a drastic cost-cutting plan in the future and a cost reduction of 2 billion euros per year from 2020. In the meantime, however, Will invest more heavily in digitization. The group expects to invest 2.8 billion euros in five years, which is six times more than the current investments in digital and omni-channel reforms (total investment and operating expenses).
It is a well-known fact that the Chinese market has become the forefront of digital applications. New retail templates like Boxmax have attracted the attention of veteran retailers around the world and remain in touch with Carrefour's digital transformation so prestigiously Tentacles, is crucial.
Missed the best time
The other reason is with a trace of helplessness.
Don Carnival pointed out that Carrefour in the past few years invested a lot in the Chinese market to do a lot of things, conducted a series of innovations, opened online shopping malls, opened a new convenience store in China's six major regional distribution centers set up to cancel The city procurement center, and actively transform the transformation of supermarkets and so on.
As said, Carrefour has been hoping to try to regain its lost ground through self-help. However, none of these measures have achieved any significant improvement so far. In 2013, the self-built Carrefour Online Shop still has not operated smoothly yet and was introduced into China in 2014 The convenience store format 'Easy Carrefour' has also been questioned about its slow progress, to 39 now, even behind the 40 Carrefour set targets for 2016.
For now, these inputs did not give Carrefour the expected market share, but undoubtedly raised Carrefour's expectations of the market, as Don Carnevalle said, "Carrefour invested so much in China is impossible to give up this Marketing. '
However, an over-emphasis on these 'sunk costs' may also make Carrefour miss a better 'window of opportunity' - the more you invest, the more you value your assets and the harder it is to reach a consensus with potential partners Carrefour, the former global CEO, said it would seek cooperation with Chinese companies, but this goal until its departure in June 2017 have not been achieved, and Wal-Mart, the world's largest retailer, took this step back a year ago , Announced a deep strategic cooperation with Jingdong.
One of the things that Caijing learned also illustrates this issue. According to insiders, when Ali is preparing to invest in offline retail, there are many potential investors who eventually delineate two targets, namely, RT-Mart and Carrefour. However, Carrefour offers more High, while the RT-Mart is relatively cheap, and the terms of the acquisition is simple, so Ali finalized the former.
Duo 'dispute
RT-Mart alliance with Ali, may also be to some extent, to stimulate Carrefour's decision-making speed.
On November 20, 2017, Alibaba Group, Auchan Retail SA (Auchan Retail) and Runtai Group announced that they have reached a new retail strategic cooperation. According to the strategic agreement, Alibaba Group will invest approximately 2.88 billion U.S. dollars, both directly and indirectly, Retail 36.16% of the shares, the latter owns Auchan, RT-Mart two major brands in the country's 29 provinces autonomous regions operating 446 supermarkets.
Not only Carrefour, other retailers that do not have a "stand-in" may not be able to restrain.
January 22, BBK Chain Co., Ltd. issued a public notice, saying that due to planning major issues, the company's shares in the January 22, 2018 from the temporary suspension of trading, the suspension is expected to 10 trading days.
In fact, BBK is also an ambitious regional retailer whose business covers supermarkets, shopping centers and convenience stores. It also set up an e-commerce platform. However, on December 28, BBK's import cross-border e- Cloud Monkey global purchase 'announcement that the company due to business restructuring needs, will be December 31, 2017 shutdown of this platform.
In 2018, backgammon on the line 'retail + food' Fresh Food Romance, it is said that backgammon chairman Wang fill has also been to the founder of Boxer freshman Hou Yi learn perhaps Hou Yi and Wang fill the traditional retailer's restructuring have had exchanges, 'New retail can not be achieved through the self-escalation of traditional retail and traditional e-commerce, but must be completely subversive.' Hou Yi, who had decades of experience in traditional retail and JD.com, was interviewed by a reporter from China Entrepreneur Time pointed out.
In the self-defense, the transition after the storm, the alliance with Internet companies may be the last resort, but how to stand on the team need to be cautious.
BBK previously had cooperation with Ali and Tencent, Wang Wang had an interview with Ali and Tencent had a comparison, he thinks Ali is like the Apple system to force the players within the system to rule, either obedient, or do not come in; Tencent, like Andrews system, provides an open platform for all players to live in peace and harmony.
At present, among the top five retailers in the Chinese market, Alcoa-based Gao Xin Group occupies 8.2% of the market share and ranks first in the market. Among the other four, Vanguard, Wal-Mart and Jingdong have conducted in-depth cooperation. The fourth and fifth Carrefour Wing Fai and Tencent walk closer.As Tencent has become the largest shareholder of Jingdong, then the future of the new retail contention, it can be said that concentrated in the two camps, Ali and Tencent.
This will be a different retail pattern from the past. In the era of traditional retailers, the market is very fragmented with less than 40% of the total market share of the top ten retailers. However, in the future, this market will become more and more oligarchic The
'What will happen to the retail industry in the future? I really do not know. From the experience of the past dozen or twenty years, since the war has taken place, it will not end soon, and when it ends it must be out of character The financial writer Wu Xiaobo said in a speech.
Before it turns a deaf figure, the sooner you see the situation, the sooner you have the upper hand. Perhaps Carrefour's decision is not too late.