Abstract: In recent years, with the changes in global consumer demand, consumption channels, and consumption methods, the era of rapid growth in global retail market sales has passed, and the slowdown in retail sales growth is an obvious trend. The data shows that the global retail sales maintained a small growth in 2013-2018, but the growth rate slowed down. It is expected that the global retail sales will continue to rise in 2019, with a year-on-year growth rate of less than 4%.
Retail sales is a timely indicator, related to consumers’ main consumption patterns. It will be adjusted due to seasonal changes, holidays, and trading days. China’s retail format innovation has become one of the highlights of global business innovation, which has driven the transformation and upgrading of the retail industry, data-driven, cross-border integration, and value reshaping.
Global retail market size in 2019
In recent years, with the changes in global consumer demand, consumption channels and consumption methods, the era of rapid growth in global retail sales has passed, and the slowdown in retail sales growth is an obvious trend. The data shows that the global retail sales maintained a small growth in 2013-2018, but the growth rate slowed down. It is expected that the global retail sales will continue to rise in 2019, with a year-on-year growth rate of less than 4%.
From 2013 to 2018, China’s social consumer goods retail sales accounted for more than 40% of GDP. Ai Media Consulting analysts believe that although the share of retail sales of social consumer goods in China declined slightly in 2018 after the peak of e-commerce dividends in 2016-2017, social consumer goods are still an important economic growth compared to other industries Source of contribution.
The development dilemma of China’s supermarket retail industry in 2019
1. High homogeneity of stores
The repetition rate of investment brands is very high, forming a serious homogenization of “one store side” and lack of consumer stickiness.
2. Matthew effect is obvious
The market competition for giant companies is strong, and small companies have weak competitiveness in the physical retail industry, making it difficult to survive.
3. Rapid expansion and simultaneous closure of stores
Some new retail enterprises are actively and rapidly expanding, but there is a collective tide of closing stores.
4. Challenges in the Internet age
The major giants are integrating omni-channel marketing, and the market competition is fierce.
2019 Chinese supermarket retail industry development trend: service
Emotional sales: Taking consumers as the core, returning to the essence of service, cultivating the professional qualities of sales personnel, changing from traditional product management to emotional management, inspiring customers to stronger shopping desire.
Re-building and construction of core values: The service value of retail enterprises has been further innovatively improved, promoting the upgrade of store experience, and creating a more humane and more experienced store environment.
Employee’s professionalism is improved: When customers are shopping in the store, employees can read the customer’s shopping related materials in the first time, leading consumers to buy more suitable and satisfactory products.
2019 Chinese supermarket retail industry development trend: management
Online and offline integrated marketing and increased cost-effectiveness of products: Develop products for e-commerce for online shoppers, and maintain unified online and offline prices, promotions, and after-sales services. Products and brands with low cost performance will be gradually eliminated.
China’s domestic market shifts to the central and western regions: store outlets extend and sink from first- and second-tier cities to third- and fourth-tier cities, forming a regional competitive advantage and spreading to a variety of consumption scenarios.
Both globalization and localization are strengthened: the globalization trend in supply chains, commodities, concepts, and talents is obvious. At the same time, the localization differences in various regions will be highlighted, focusing on the parts with better growth momentum.
Part of the above content comes from the “Ai Media Report | 2019-2020 Global Physical Retail Operating Model and China Innovation Case Model Research Report” released by the Ai Media Research Institute