Research On The Transformation And Upgrade Of Zhengzhou’s Comprehensive Retail Industry Under The Perspective Of Western Industrial Organization Theory

Representing the highest level of city commerce, Comprehensive Retails is the earliest open and the most competitive in China. The reform and opening-up and accession into WTO witness the fully opening-up of Chinese retails to foreign investors. Zhengzhou native retailers have been under huge pressure in the fierce competition. Therefore, it is very necessary to analyse its evolution and development mode under this background, which is of great significance for upgrading its business competition and industrial status.This thesis researches on the transformation and upgrade of Zhengzhou’s Comprehensive Retails with both qualitative and quantitative strategies. Under the Perspective of Western Industrial Organization Theory, it takes an in-depth study on its evolution, reveals its industrial features, and then puts forward some constructive suggestions.The transformation and upgrade of Zhengzhou’s Comprehensive Retails begins with that of Department Stores. Within thirty years, it has formed an organic format full of Department Stores, Supermarkets, General Merchandise Stores, Shopping Malls, and Urban Complexes. Department Stores occupy a high-end market; Commercial Streets represent its unique characteristics; Supermarkets, General Merchandise Stores and Shopping Malls become its backbone; and Urban Complexes represent its future development.Analysed under SCP paradigm, Zhengzhou’s Comprehensive Retails has formed the industry structure featuring multi-ownership competition, multi-mode co-prosperity, and multi-business center. It has relatively low barriers to entry, but rather high barriers to exit. Its imbalanced distribution of commercial resources is leading to higher market concentration. Thus, the prospect of small and medium-sized retail enterprises is worrying. In the fierce competition, market structure determines the innovation of market conducts. Management shows diversified innovation means of pricing and marketing strategies; Compared with competition in products, the competition in capital becomes increasingly important, which is reflected in the more and more frequent M&A and internal resources integrations. From the analysis of market performance, it can be said without doubts that the full flowing of commercial resources has promoted the overall market performance of Zhengzhou’s Comprehensive Retails. At the same time, the newly-emerged formats can often capture market quickly and get stronger profitability in general. The profitability of foreign enterprises with advanced management and techniques are far higher than domestic enterprises. They grab more than50%profits of the total. Based upon this, the future transformation and upgrade of Zhengzhou’s Comprehensive Retails should focus on optimizing market structure, accelerating industrial upgrade, regulating market behaviors, encouraging commercial innovation, as well as attaching importance to government planning and guidance to make a promising city brand.