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Stepping into 21st century, Chinese retail industry developed rapidly. In 2008, Chinese economy continuously kept in stably rapid growth. Consequently, consumption market continuously maintained further rapid growth in China with yearly social consumption retail amount recording 10000b RMB, increased by 21.6% to 10848.8b RMB, up 4.8% from the same period last year. It was anticipated that Chinese retail industry would keep stable expansion at 11% or so from 2009 to 2015 and social consumption retail amount would be over 22000b RMB till 2025, indicating retail industry would play a more important role in GDP. Currently, there does exist abundant investment opportunity with large extending possibility in Chinese retail industry. Since December 11 2004, the first year when Chinese retail industry was wholly open and foreign retail enterprises were introduced to various phases of Chinese market, the Ministry of Commercial and Business Administration have licensed over 1000 foreign retail enterprises, treble of the amount over past 12 years. Till the end of 2008, 40 of top 50 global retail enterprises have entered into China. How Chinese local retail enterprises compete with such competitors?Firstly, the article focuses analysis on Chinese retail industry development in Founding Period, Reforming Period and 21st Century Period, foreign retail enterprises’performance in China and local retail industry prospect. The boosting of local retail industry reflected the increasing domestic economy, people’s growing income and purchase power, which provide great opportunity for Chinese retail industry development. There shall be great achievement for Chinese retail industry in future by utilizing opportunity, enhancing management and reforming idea.Secondly, taking Wal-Mart, the global retail leader, as a shining example, the article generally analyzed financial indicators in 1972-2008 annual report, targeting research at such capabilities as solvency, profitability, operation and potential.Thirdly, the article analyzed annual reports in year of 1973, 1980, 1990, 2000 and 2008 by DuPont, and based on ROE, decomposed into a number of factors multiplied by the form factor decomposition method used to study the trend of ROE changes, differences in the impact of industry factors in contrast to the calculation of various factors to determine the extent of the amount.Finally, the article analyzed pros and cons between four selected domestic listed companies and Wal-Mart and sorted out inspiring experience and methods for local retail industry development.
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