The Opening and Reform of
China & the Rise of Chinese
Retail Business
— We Are the Dashang Group From Dalian
Dalian China
Lu Lu
The Opening and Reform of
China has hastened the Rise
of Chinese Retail Business
Three Significant Changes of Chinese Retail Business
Resulted from the Opening and Reform of China
The high
growth of Chinese
economy in the
past three decades
has created the
high demand and
high speed in the
history of Chinese
retail market.
The transform of
Chinese economy
towards the socialist
market economy
system has
accomplished the
brand new market,
commodity-oriented
operating system and
mode of Chinese
retail industry.
China Joining
the WTO has become
the most direct motive
power to bring
Chinese retail
business in line with
the international rules,
which has hastened
the Chinese retail
business to quickly
move towards
internationalization
and modernization.
The Experience of
Dashang Group’s
Innovative Development
Dalian China
Introduction of Dalian
Dalian is one of the 15 sub-provincial cities in China, as
well as the largest port city within northeast China.
Dashang Group
There must be a super corporate in
China retail industry. There must be a
position for the Chinese commercial
business in the world.
Niu Gang
Chairman of the Board
Dashang
Group
Store Exhibition of Dashang Group
Main
Store of
Harbin
MYKAL
Da
-lian
New
Mart
Shopp
-ing
Mall
Shen
-yang
New
Mart
Shopp
-ing
Mall
Dashang Group
More than 200 stores distributing over
half of China.
Total construction area of 10 million
square meters.
Total sales revenue of 131 billion in 2012.
Total employees of 230,000 persons.
Retaining its position in Chinese
Enterprise 100.
DA
SHANG
GROUP
Shop
Distribution
Map
Construction Area
Total Staff
10 million
230,000
m²
Persons
Construction
Area
50,000 m²
Total Staff
2,000 persons
1992
DASHANG
GROUP
2012
Total construction area & Total staff
of Dashang Group Stores
DASHANG
GROUP
2012
Sustained rapid growth of sales in 20 years
2011
2010
+262
times
2007
2002
1999
1995
1992
0.5B 1.67B
1992
Units: RMB
5B
12.79B
50.2B
86.1B 110.1B
131B
2012
Dashang
Group
Major
Business
Constitution
The Driving Force Behind
Dashang Group’s Innovative
Development
Multi-system stimulates
vitality
Shareholding
Reform
Joint venture
partnership
Dashang
Business
Mode
The Operating Practice of
Dashang Group’s Innovative
Development
Multi-system stimulates
Multi-format
mixed operation
vitality
Contents
Multi-modal store expansion
Multi-format mixed operation
Multi-store subdivides market
Diversity creates shopping district
Multi-modal store expansion
1
2
3
Department
store
chains
MultiFormats
Supermarket
chains
Electrical
appliance
chains
Five-star
Hotels
commercial
real estate
www.66buy
.cn
New
Mart
KINGSON
Multi-store
Mykal
Department
New Town
Shopping
Mall (NTS)
Store
Main Store of
Dalian MYKAL
MYKAL
The World Today
is Here
Description of
the contents
Main store of
Harbin MYKAL
Description of
the contents
Originated in Japan, developed
in Dalian, positioned itself to satisfy
Chinese high-end customer needs with
international and national first line
brands, MYKAL has succeeded in
Dashang and become one of the
comprehensive high-end shopping
malls in China.
Dalian New Mart
As the brand new retail model created by Dashang
Group, New Mart shopping mall has an unique
strong shopping mall overtone. With the average
area of over 100,000 square meters, New Mart has
provided the customers with one-stop shopping
experience by combining restaurants, department
stores and other leisure places all together.
Featured as young, fashion and vogue, this style
has become part of modern local life and the
typical representative of Chinese department
shopping center centralization.
新玛特
NEW MART
创新生活每一天
Zhongjie Store of
Shenyang New Mart
NEW MART
Innovative Life
Everyday
Dong gang
KINGSON
KINGSON
Lead the Fashion
Trend
M4
Description of
the contents
Dalian KINGSON
Positioned as mid-price range
department store , Kingson
advocates to the young and chic
customers in third/four-tier
cities.
Dalian
Department Store
Based on the local old famous and
established department store acquired
by Dashang Group and reformed into
modern integrated shopping center, it has
tremendous commercial reputation and
market appeal.
Department Stores
Modernize Local Old
Famous
and of
Established
Description
the contents
Stores
Haerbin New 100
department store
Laohu Tun NTS
New
Town
Description of
the contents
Shopping
Mall
(NTS)
With the exploitation and
construction of Chinese new town
and the countryside retail market
planning, NTS, as an unique store
model, has been established and
developed in the extension of new
country and new town grid.
Dashang
Supermarket
Dashang
Business
District
New strategies of Dashang
Group responding to the
changes of retail market
Self-sale & Directmarketing
Through the direct cooperation with
the brand company, banning the
middle men, Store can run
themselves at the sales end, boost
profit margin and share to the
customers. The radical reform of
this new business model lies in: the
Omission of middle stages in
commodity circulation, reduction of
the commodity price, improvement
of retailers management abilities
and the optimization of supply chain
links.
New strategies responding to the changes of retail market
Private brands
Dashang has founded its industrialproducts and grocery private brand
company, Dashang liquor store,
Dashang watch, Dashang Tea and
other professional company. With
the
operating characteristics of
dozens of private brands &
thousands of commodities, Dashang
has changed operating homogeneity
and
increased
market
competitiveness and profitability.
New strategies responding to the changes of retail market
“Centralized Procurement”
& “Unification & Antinomy”
“Centralized Procurement” :
The
specific
commodity
department,
containing the whole brands and modes of
operation of all the department stores,
supermarkets,
restaurants
and
rental
business, has been founded to take charge of
all the procurement, negotiation, contract
terms and position adjustment of counters
related to all the categories and brands, thus
having a strong voice in the market and
optimizing the supplier management.
“Unification & Antinomy” :
To cope with the e-business, the value of
Unification & Antinomy should be deployed
in the business. Unification means the
ultimate
unification with e-business by
blending and permeating business both
online and offline ; Antinomy means each
party
playing
a
complementary
and
indispensable role respectively. Dashang
group, taking the platform of “66.com” ,
seeks to cooperate with all the high-quality
professional company and produce new
breakthroughs in the effective blending of
online and offline business.
New strategies responding to the changes of retail market
Three zero means zero inventory, zero capital
occupancy and zero decorate charge.
Through constrict control of the above , the
potential risks of self-running commodities,
such as gold and major appliances , has
been effectively guarded. Through refusing
to provide the decorate charge for
international brands, the market rules has
been more fair and reasonable. In
consequence, we managed the everlasting
uptrend of the net profits in despite of the
downturn of the market environment.
“Three Zero”
“One Rate”
One rate means the management mode of one
actual gross profit rate. We advocate
“transparent marketing “ in the presence of the
consumers and emphasize on the “transparent
profit margin” between
providers and
suppliers, and also completely eradicate
“opaque working”, which will actively boost the
Standardization of retailing order.
New strategies responding to the changes of retail market
Check and Balance
by three parties
Check and Balance by three parties , refers to the
effective regulation of retailing behavior through
scientific balancing relationship . In respect of
organization framework and with the purpose of
multi-party balances, multi-level retardant to
block the management leak, a series of institution
and regulation as well as vertical management
has been set up from top to bottom
corresponding to the huge commodity
department, including “Approval Committee of
Contracts and business”, ”Supervision and
Prevention center"," Loss Prevention
department”, “Capital Department”.
New strategies responding to the changes of retail market
Opening Stores is the
Absolute Principle
In order to form a new pattern of store system
which is centered by the urban CBD, framed
by the regional business center, and based
on the commercial facilities, Dashang group,
taking the advantage of the multi-format &
multi-store development mode, aims to build
up the four-level store network covering city,
town, country and village, thus satisfying the
newly appeared construction demands of
urban new district, citizen community, new
town and new village during the new round
of China urbanization process.
New strategies responding to the changes of retail market
THANK YOU!