Study Of The Impact On China's Retail Industry And The Countermeasures Of Domestic Retail Enterprises After China's Open In Retail Market

According to the agreement with WTO, Chinese retail market has been open to the foreign enterprises on Dec. 11^th, 2004. Now foreign retail enterprises are quickening their steps in the field of exclusive investment, overspread, and purchasing. Compared with foreign enterprises, our own retail enterprises still have a long way to go in the aspect of capital strength, business scale, management experience, logistic, information technology, and etc. Therefore, the market competition will be more and more intensive. If any monopoly in our retail market in the future, both our China's retail enterprises and manufacture enterprises will be strongly impacted. So it is necessary for us to comprehensively study the situation in our retail market. Through the analysis of current market situation and the strategies in foreign retail enterprises, we could find the gaps between our own enterprises and foreign enterprises, and we could suggest the countermeasures for our domestic retail enterprises.Now the problems emerging after China's retail market opening have attracted the attention among many Chinese scholars. But most of the study is qualitative analysis, lack of enough data as the judging basis. In this paper, on the basis of huge amount of data, we will study the current market situationwith SCP model, and compare the advantages and disadvantages between domestic and foreign retail enterprises with SWOT analysis measure. Also, we will study the competition system with game theory in this paper. With Nash equilibrium and infinite repeated game theory we suggest that non-price competition and differential management is the best way for domestic retail enterprises. And Hotelling model will show the impetuosity extent in price competition under space differentiation. Through panel data model it will be tested whether there exist distinguished varities of consuming mode in areas with different economic development level.On the basis of theoretical analysis and data statistic, with the current situation study in domestic retail industry we suggest that in the face of intensive competition, our domestic retail enterprises should study and use successful foreign investors' experience for reference. Through setting up large-scale retail group, implementing differential management, and subdividing regional markets, domestic retail enterprises could solidify the current market share and improve their core competency to for their long-term development.