Taihua Supermarket Group has expanded wildly and successfully entered the 100 billion turnover club.
This is a very big gap. World retail giants such as Tesco, Metro, and Dutch Supermarket all have annual sales of around US$50 billion. Carrefour’s sales last year were around US$70 billion, while Wal-Mart’s sales last year were around US$70 billion. The amount exceeded US$370 billion.
This is why Wal-Mart is called the world's largest retail giant, and its gap with other retail groups is not the slightest bit.
Of course, there are more than ten supermarket chains in the United States with more than 30 billion US dollars, and the turnover of many supermarket groups in a certain state even exceeds that of Wal-Mart. But taken together, they cannot be compared with Wal-Mart. The other nine combined together are almost the same as Wal-Mart.
What's more, Walmart has branches not just in the United States, but also in Canada and even more than a dozen countries around the world. The Walton family is also a powerful family in charge of the retail industry.
There are many supermarket groups in North America with sales of more than 30 billion, haven't they ever thought of joining forces
I have thought about it, but two companies can join together. If three or five companies join together, then everyone's equity will be severely diluted. Who will be the chairman and who will be the CEO
Only power can guarantee their interests. None of them want to lose power, so those supermarket groups have never been able to merge, or even sincerely unite to fight against Wal-Mart.
In the minds of many retail tycoons, Wal-Mart is the pinnacle that can never be challenged. Unless Wal-Mart commits suicide, Wal-Mart will always be the number one in the world, and no retail company can surpass it.
This is also the reason why Wal-Mart ranks among the top three in the Fortune Global 500 all year round, and even ranks first many times. No company would want to cooperate with a retail giant like Wal-Mart.
Even for Coca-Cola, the world's number one beverage giant, if Wal-Mart no longer sells Coca-Cola's products, Coca-Cola's turnover will inevitably drop significantly.
Wal-Mart also determines the retail prices of many products. As long as there is a Wal-Mart in the area, no retail company can have a lower retail price than Wal-Mart. Even for products without any publicity, sales can skyrocket after entering Wal-Mart.
This is people's trust in Wal-Mart and proves Wal-Mart's brand value.
Walmart's global presence suppresses the rise of other supermarket groups. Even in Europe, where supermarkets first appeared, no supermarket group can compete with Wal-Mart.
Wal-Mart once really wanted to enter the Chinese market, a huge market with a population of more than 1.3 billion. With such a high population density, what a high-quality retail market it must be.
Unfortunately, when they first investigated, they found that China's economic situation was too poor and people did not have the habit of shopping in large supermarkets.
While they were still trying, they discovered that a supermarket chain had already emerged, which was Taihua Supermarket Group.
The business model of this supermarket has many similarities with the world's supermarket giants such as Wal-Mart and Carrefour. Its operation and management are not lagging behind at all, and its expansion is very rapid.
Wal-Mart finally found a place and found that a Taihua Supermarket soon appeared in that place. Even when they first started to inspect this city, a Taihua Supermarket soon appeared in this city.
They were even close to signing a contract several times, but the local government suddenly refused to sign, saying that a retail group had been introduced, and the investment scale of the other party was larger than that of Wal-Mart, and the conditions given were more generous.
For example, they promise to pay how much tax, how many local people they promise to employ, and even donate to build local roads. This is just like doing charity.
From the perspective of Wal-Mart Group, this is simply a loss. Although it is said that once the supermarket becomes bigger, the cost will be reduced, and then it will be able to make profits.
However, the initial investment in supermarkets is also quite large, and the capital requirements are not low. What's more, they are not renting shopping malls, but buying or even building them directly.
The crazy expansion of Taihua Supermarket Group naturally attracted the attention of giants such as Wal-Mart at that time. At first, they all thought it was a state-owned enterprise of China. After all, in their impression, all enterprises of a certain size in China were state-owned enterprises.
It is not that China does not allow private enterprises to operate, but there will definitely be many restrictions and development will be very difficult.
After investigation, they discovered that this was actually a private enterprise, just a joint venture with Xiangjiang. Among them are the shares of Xiangjiang Li Chaoren and the shares of the Xiangjiang Fu family. These two families are top in Asia.
Li Chaoren is one of the top talents in the world. Even retail giants such as Wal-Mart have business cooperation with Li Chaoren's companies. Their logistics and transportation cannot be separated from shipping, and naturally they cannot do without ports.
At that time, what they were most confused about was that another person, a shareholder named Feng Yu, was still the largest shareholder. Who is this person, and how can he surpass the Fu family in Xiangjiang and even surpass Li Chaoren in terms of shareholding ratio
At that time, Feng Yu was not the richest man in the world, nor was he famous. However, retail giants such as Wal-Mart and Carrefour who are aiming to enter the Chinese market have remembered the name Feng Yu. It is said that it was he who established and expanded the Taihua Supermarket Group so quickly against all objections.
It was not until later, when Feng Yu suddenly appeared on Forbes, that they knew that this man was actually one of the world's richest men, and that Taihua Supermarket Group's shares were only a small part of his many investments. It was also the strategy set by this person that made Wal-Mart and Carrefour finally withdraw from the Chinese market.
We only opened a few supermarkets, and we still had to leave an entire management team behind. The costs were relatively high and we couldn't make any money at all. We even kept losing money.
But they did not give up the opportunity to enter the Chinese market. They found that China is now just like the United States, with many supermarket chains emerging.
Although it is far from comparable to Taihua Supermarket Group in terms of scale, it is still very tempting to integrate two or three companies together through acquisition.
Wal-Mart in particular has inspected several supermarket chains in China at this time, but none of these supermarkets satisfy Wal-Mart.
Either the scale is insufficient and they are settled in a corner, or the location is not good and the profit is meager. Some of them do not intend to sell all of them at all, but are only willing to sell part of the shares. How can Wal-Mart agree to this
While Wal-Mart was still in contact with these supermarket chains, it discovered that a tiger had arrived at their base camp!
Taihua Supermarket Group has actually expanded its business to North America. Before Wal-Mart had yet to attack the Chinese market, Chinese companies actually began to attack the North American market!
Moreover, Taihua Supermarket actually holds shares in the Polar Bear Supermarket Group, and its annual turnover suddenly exceeded 100 billion U.S. dollars. This is a challenge to their Wal-Mart.
Wal-Mart headquarters immediately ordered to acquire at least one supermarket chain in China as soon as possible. Wal-Mart wants to fully enter the Chinese market!
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