The industry growth rate is the lowest growth rate, and the net profit of enterprises is negative.

The industry growth rate is "the lowest growth rate", the Enterprise net profit appears "negative growth"-----------This is the grim situation facing our retail industry.

As we all know, the retail business has been very difficult in the past year, and the pace of growth in the retail sector has also plummeted during the national economic slowdown. GDP grew 7.4% in the first quarter of this year, down 0.3% from a year earlier, according to data. At the same time, the first quarter of the national key large-scale retail sales growth rate in the past eight years, the lowest in the same period.

The economic downward pressure still exists, the consumer market is difficult to change the weak posture, in this situation, the retail industry is bound to usher in a change, in the contrarian seek new breakthroughs. Of course, the process of climbing over the ridge will also become the growth of the retail industry capital, challenges and opportunities accompanied by the retail industry.

Industry: Facing the "lowest growth rate"

The latest information released by the China National Business Information Center shows that the total retail sales of consumer goods in 2013 amounted to 23.781 trillion yuan, an increase of 13.1% in nominal terms, a slowdown of 1.2% over a year ago, and a third consecutive year of decline, the lowest growth rate since 2004.

In the sector, clothing, cosmetics and food, and other areas have also seen a sharp decline. Cosmetics retail sales growth rate since 2008 the lowest value.

According to the statistics released by the National Bureau of Statistics, 2013 China's quota of enterprises in apparel sales growth rate of three consecutive years, is the lowest since 2003. 2013 the national key large-scale retail enterprises apparel commodity retail sales growth significantly lower than the previous year 7.3%, sales growth slowed down significantly; in 2013, the growth rate of cosmetics retail sales in China was the lowest level of growth since 2008. 2013 Major retail Enterprises cosmetics commodity retail sales growth is also since 2008, the lowest growth rate; in 2013, food retail sales growth of large retail enterprises in the last five years, the minimum growth.

In addition, China Chain Management Association "2013 Industry Development Survey" results show that the 2013 chain hundred enterprise sales scale reached 2.04 trillion yuan, an increase of 9.9%, add more than 6,600 stores, the total reached 95,000, an increase of 7.6%. Sales rose 0.9% from 2012, the lowest in sales since the hundred-strong statistics.

The 2013 was tough for retailing, but the 2014 situation was not optimistic. Data from the China National Business Information Center showed that in the first quarter of this year, retail sales of hundreds of key retail companies in the country rose by 1.4%, with a year-on-year decline of 6.2% per cent, showing a third consecutive slowdown, the slowest pace since 2005. Among them, March year-on-year growth of 1.3%, the growth rate fell 8.6% from a year earlier.

Sub-industry, grain and oil, food retail sales growth slowed 3.6% from a year earlier, apparel retail sales growth slowed 6.4% from a year earlier. Among them, the year-on-year growth rate of 3.9% in March, the growth rate slowed 6.8% from a year earlier, and gold and jewellery retail sales slowed 19.2% from a year earlier. In March, retail sales growth slowed to a greater extent than in the first quarter; home appliance retail sales slowed 0.4% from a year earlier. In March, retail sales grew 0.9% from a year earlier, while cosmetics and commodity growth slowed 10.5 and 4.4% respectively from a year earlier. In March, both grew by 16.2 and 4.2%, respectively, from a year earlier.

This shows that 2014 domestic consumer market situation is still weak, domestic retail enterprises under great pressure.

Enterprise: Entering "negative growth"

China Chain Management Association released data shows that the 2013 chain hundred enterprises sales of negative growth of enterprises significantly increased to 15, for the most calendar year. In the data, the reporter found that the sales of the chain of negative growth in many of the traditional retail enterprises, there are farming supermarkets, Huizhou merchants Group, Lotte Mart, everyone le, San Jiang Shopping, Guangzhou Friendship Group, Bojia and so on.

The days of retail companies are tough, as can be seen from the annual reports of listed companies. According to the reporter understand, in 2013 listed commercial enterprises, a number of large retail enterprises sales and profit growth slowed or even negative growth.

2013 Parkson Company sales amounted to 17.481 billion yuan, only 4.3% year-on-year growth, net profit has slipped 58.4% to 354 million yuan; Ginza shares 2013 annual report, 2013 company to achieve operating income of 14.218 billion yuan, an increase of 5.04% The net profit of the shareholders of the listed company is 266 million yuan, down 23.1%. The net profit has the negative growth enterprise also has the friendly group, the Xinhua department store, Wuhan Chinese business, Guangzhou Friendship, Nanjing New Hundred, nanning new hundred and so on.

It is also worth mentioning that there were a lot of losses in the retail sector in 2013. 2013 Yong-Wang supermarkets in the mainland loss of 158.3 million Hong Kong dollar equivalent to 126.77 million yuan, the commercial market loss of 219 million yuan, the lotus flower loss of 97 million yuan, Xinhua all loss of 230 million yuan.

In addition to traditional retailers, some professional chain companies have also seen a sharp decline in performance. The United States Granville 2013 annual sales revenue for 7.89 billion yuan, down 17%, belong to the listed company's shareholders net profit of 405 million yuan, the year-on-year decline 52.2%, EPS for 0.40 Yuan.

Companies that saw net profits fall in 2013 were similarly hard to change in the first quarter of 2014, according to a quarterly report released by business listings in 2014. Wuhan in the first quarter of this year's revenue for 1.218 billion yuan, an increase of 1.63%, while the net profit of 20.1378 million yuan, fell 28.78% year-on-year. Nanning department store in the first quarter of 2014 to achieve operating income of 685 million yuan, down 10.5%, the return of the listed company shareholders of the net profit of 1.1242 million yuan, the year-on-year decline of 88.19%.

In the first quarter of this year, some companies that did not show a "slowdown" in 2013 years were also in trouble. Wangfujing 2014 The first quarter to achieve operating income of 5.24 billion yuan, down 4.97%, the total profit of 311 million yuan, an increase of 2.02%, attributable to the net profit of 223 million yuan, an increase of 0.45%, deducted the net profit of 184 million yuan, the year-on-year decline of 11.3%. Beijing Urban and Rural January 2014-March operating income of 724 million yuan, down 6.89% per cent, net profit of 31.3984 million yuan, down 4.48%.

Dilemma: High cost growth

In addition to the influence of the international and domestic economic situation, the retailing industry has its own development predicament.

Last year, the retail trade ushered in a close tide, which due to the closing of the contract due to close the business strategy, but in fact, the reason behind is because of unbearable cost, in front of the profit had to opt out of the city often

China Chain Management Association survey showed that 2013, the chain hundred companies in the rental expenditure increased by 11%, labor costs increased by 18%, and 2012 years of similar gains, continue to be in a state of rapid rise. Both cost increases were significantly higher than the sales growth of companies.

"High costs are the key to making retail business more difficult." 2013, the retail industry costs rise from slow to acute, rigidity accounted for the increase in the characteristics, if a certain critical point, will have a fatal impact. Guo Goping, president of China Chain Management Association, said that many retail companies reported that more than 80% per cent of corporate sales costs and management costs rose in the first half of 2013, while retail sales increased markedly slower than cost increases.

The term "cost growth" is also frequently seen in the annual reports of commercial listed companies. The 2013 annual report of the United States of America, said that the company in the industry trough the cost of spending has been reduced, but due to a slight decline in income, the cost rate has increased, sales cost rate increased by 2.3% to 31.4%, management fee rate increased by 0.5% to 3.3%.

Rising costs are forcing businesses to slow down. Data show that the hundred enterprises, 21 enterprises in the total number of shops have negative growth. 2013, the chain of hundred-strong companies in the store growth fell 0.4%.

Last March, retail Wal-Mart first staged a closing wave. Successively closed the Chongqing South Waterfront store, Jiangsu Yancheng Store, Hunan Changde shop and two stores in Ma On Shan. In the convenience store, Rosen closed about 30 stores, and after that, the company began to adjust and close dozens of stores. Department stores are also hard to escape. March 2013, the capital famous department store big Guy Guiyou closed the Fangzhuang shop; in the middle of the year, the Ocean department store Shijiazhuang Shop closed, operating in Shenyang for more than 5 years, the Iraqi potential Dan closed; in turn, the Chengdu Pacific Department store closure, Parkson also difficult to escape close fate, first closed Parkson Guiyang flower shop, at the end of August, Parkson Shijiazhuang, a store also closed.

An industry or an enterprise, embark on the downward trend, has the economic big situation influence, but more is own question.

As we all know, the retail industry is difficult to profit, but also its business aging, lack of innovative models. As a result of the whole industry in the early period of crazy expansion and the early overdraft of market resources, coupled with the lack of industry marketing innovation model, the retail industry is increasingly showing a weak state. In the period of meager profit, industry giants and large retail stores to participate in competition, if the retail industry has no characteristics, it is difficult to obtain consumer recognition. Now, the society is developing, the whole consumer market is also changing, retail enterprises must follow the footsteps of the times, pioneering progress.

Breakthrough: Advancing Path selection

"Conform to the situation, adapt to the requirements of the retail industry transformation and innovation and development should take a greater step." Recently, Wang Desheng, deputy director of the Department of Circulation and Development of the Ministry of Commerce, has given the answer to the path selection of the retail industry in the "2014 China Xiamen Circulation Economic and Urban Development Forum" jointly sponsored by the China Business Federation and the Chinese commercial newspaper.

First, technological innovation is an important support to promote the development level of retail industry. Wang Desheng believes that the reason we say that the retail trade, including the circulation of commerce has gradually become the automation technology, information technology, standardized technology highly integrated technology-intensive industries, because in recent years, computers, escalators, central air-conditioning, cold chain equipment, electronic transaction payment system, anti-theft system, commodity security, Fresh-keeping and warehousing, logistics and distribution centers and other advanced facilities and technology in the field has been more widely used.

Nowadays, the rapid development of information technology and electronic commerce is leading to the revolutionary change of the circulation field, bringing the deep change of consumption idea and consumption pattern, which is no longer a trend but a real reality. To adapt to the requirements of the situation, the retail enterprises only to speed up the technology application and Management mode innovation, can be more close to consumers, more adapt to the trend of consumption, which is in the fierce competition to win the initiative and the Magic weapon to succeed.

Secondly, the combination of entity and network is the new growth point of retailing industry. In recent years, the rapid development of network transactions, the marketing of goods and services gradually expanded, the participation of enterprises and individuals to increase rapidly. Relevant data show that in 2013, China's network retail turnover of more than 1.85 trillion yuan, has become the world's largest network trading market transactions to break the time limit, so that the circulation channels, circulating links, circulation radius have brought new changes, consumers are no longer simply to select goods, but at the same time choose modern, fast, Fashion lifestyle.

It should be said that physical stores and network sales have advantages, for the entity shop, the biggest advantage is to meet the actual consumer experience and enjoy the service needs. How to realize the integration and development, both and the formation of new advantages, should become the strategic choice of many circulation enterprises. The entity business should expand its network business by means of professional platform, self built website and mergers and acquisitions, and realize the new development by using the "net-order-shop-Lack" fusion mode. Network sales enterprises should improve the simulation experience, logistics distribution, electronic payment and other ancillary services, in particular, can use the existing chain of enterprises to enhance the convenience of distribution services.

Moreover, the logistics distribution is the key link to improve the circulation efficiency. The perfect logistics distribution system, whether for retail enterprises or the whole industry, is the key to effectively improve efficiency and reduce costs. Wang Desheng that in recent years, China's trade and logistics development and innovation pace accelerated, but the overall level is still to be upgraded, specialization, standardization, information level is not high enough to affect the circulation efficiency. Large chain enterprises should strengthen the construction of logistics and distribution capacity, realize the development with the chain network, so that the logistics synergy and DOT advantage under electronic commerce are further highlighted. The majority of small and medium-sized enterprises to develop common distribution, effectively reduce operating costs.

In addition, the integration of development is a strategic choice to strengthen the circulation function. Nowadays, the fierce market competition is not only the competition between enterprises and enterprises, but the competition between the supply chain, the competition between the business circles, the competition among the fusion bodies, the era of a all enterprise has passed. The retail enterprise should strengthen the integration development idea, break the link, the region, the enterprise limit, take the market demand as the direction, positively constructs the stable, the multiplex supply chain management system, then evolves for the coordinated development service chain, the value chain, the industrial chain. In the construction of supply chain, we should devote ourselves to the building of harmonious 0 relationship.

"0 for the competition between, but more cooperation, is a community of interests, through strengthening cooperation, enhance the supply chain management level and value-added capacity, and jointly expand the new world of harmonious development." "Wang Desheng said.