| Based on the data from China Selling Union "The market of China retail industry on 2003", the selling developing rate from 2002-2003 of China retail industry is 9.8%, while as the profit decrease by 13%. Meanwhile, According to China's commitments to the World Trade Organization,up to the date of Dec.11th, this year, China retailing and wholesale business will be opened to foreign investors with no capital or geographical limitations. Starting from 1992, China has received foreign investment of three billion US dollars in retailing and approved 264 foreign-funded retailers with 2,200 chain stores, according to the official statistics. Today most foreign retail Group have entered China, but their competition preponderance has not fully showed out on account of some district policies restrict. It is expected when the policy obstacle has turned off, foreign companies can compete equally enter China's market. Top international or transnational general merchandise store (G.M.S.) companies have begun to worm into China's market. Some of these companies have already set up more than 20 stores in some big cities in China. With their excellent operation, their market share is increasing continuously. On the un-completely accounts, 70% of the 50 biggest retail companis have come to China, such as wal-mart from USA, Cartour and Aucham form France, METRO form Germany, and Ito-yokodo form Japan. They have establish a distribution net and draw a further plan to explore the retail market in China, China retail company with foreign conflict will be inescapable .We know China's retail enterprises are big in number, but small in scale. Scale-effect is almost impossible for them. Take the 122 companies with an annual sales of more than RMB50 million in 2001 for example, the average number of stores owned by these companies is only 36. In contrast Foreign retailer such as Wal-Mart, the biggest retailer on Earth, have 5,000-store discounter, had sales of $265 billion in 2003. And the company is planning set to put up 200 retail outlets in China. Another example is Carrefour the France-based retailer, In 2003, Carrefour's sales reached 13.4 billion yuan (1.6 billion US dollars), up 25.7 percent over the previous year, Carrefour plans to open 10 chain stores every year and organize 10 purchasing centres in China. Carrefour is aiming at over 30 cities in Chinese market. It will open more stores in Beijing.Facing this situation, what should our retail enterprises do to survive? What to do to pass this crisis has been the focus to the world. The author of this article thinks though China retailing competition has been cruel, many enterprises have earn little or none profit, but as a result of competition the good enterprises still can win out. Grow with China's economy rapid developing, however there is many opportunity in China market. This article make a sample of North Star commercial ,by the analysis of SWOT to prove this. In the beginning the article introduced the meaning to study modern commercial. the second part tells where the material from and investigate method. The third part demonstrate with lot of data to introduced the China macroscopical economy and Beijing's commercial status. The forth parts it analysis with SWOT to show the strength, weakness, opportunity and threats of North Star retail market, to show that there is still chance for commercial in Beijing. And then the article introduced the details of the plan of North Star commercial. At last, as conclusion, the article proves if only the enterprises in China can make good plan, and take the chance, it can still survive and grow in the competition. |
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