Research On Retail Industry’s Control Of Value Chain

In recent years, with the development of retail industry, the center of commodity circulation in China has changed from manufacturer to retailer, and the traditional relationship between retailer and supplier has changed. Retailers have gradually took the dominant position of value chain by the specially function of connecting suppliers and customers and achieving the balance between supply and demand. But this kind of dominant position is mainly reflected in the control of suppliers. There are no retail enterprises in China that can contend with the international retail sales giant like Carrefour, Wal-Mart and so on.There are still some problems occurring frequently in retail industry, such as the quality safety, the contradiction of the relationship between retailers and suppliers, the high commodity prices.In other words, retailers haven’t had enough control over the value chain. At its most basic, this problem may relate to the profit model of China’s retail industry-the Carrefour model. It’s the result of our country retailer relies too much on getting benefit from controlling suppliers. The profit model of Carrefour is taking high channel commission from suppliers, and financing by long-term occupying suppliers’ capital. In this profit model, the retailers pay more attention to taking the channel commission.Its own business ability, the control to the product’s quality, price,upstream and downstream relationship, supply channels etc. weakened gradually, which certainly have disadvantages to the retailers’ long-term development.The research object in this paper is the control of China’s retail industry value chain,and aiming at exploring problems of China’s retail industry. Through making up the related articles firstly, this thesis analyze the value chain concept, profit model,and define the concept of value chain control. And this thesis think value chain control is the enterprise in the value chain activities according to their own advantage of key points, key elements, the allocation of resources, the right of decision-making of control and so on in the value chain. Ultimately it controls on high value-added links, this builds solid theoretical foundation for the next research. Then comparing the profit pattern between international large-scale retail sales and China’s retail industry, analyze the impact of current retail profit model to the control of value chain, and further analyze the lack of control over China’s retail industry value chain through the input-output method. On the basis of theoretical analysis of the third chapter, we take SuNing as an example for the specific case analysis, explain SuNing profit model, leading to loss of control over the value chain. Finally, from this paper we concluded that if retail industry wants to have a long-term development, it should be gradually return to its own work, through internal and lengthways integration, relying on the modern finance, modern science and technology, information, professional services and other high-end services, to improve their management ability and the innovation and development, seize the key link in the entire value chain, realize the control of the value chain.