SPAR Beijing, China's 10 Most Innovation Retailer 2012
Because governmental macroeconomic policies to expand domestic demands, and growing demand for daily necessities from Chinese consumers, retail distribution industry plays a significant role in 2012 China economy development. Meanwhile, for retailers, they are facing severe competition and various challenges from chain store standardization, store efficiency and personnel. Its speed of building up organization structure and corporate culture is slower than the speed of corporate expanding. Also traditional retailers are severe influenced by e-commerce development, and social consumption pattern changed at well.
In 2012, either development aspects or key problems in retail are focusing on customer experience, staff and customer, enterprise and society, enterprise and staff. Retail is a traditional industry, as what the Chairman of Wanda Group said: “Traditional industry has the strongest vitality otherwise it won’t exist in this world for over 2 centuries, so based on this, maximum innovation is a must”, therefore, innovation is overriding importance, efficient innovation will enhance enterprise development and commercial civilization.
SPAR Beijing General Manager Mrs Xiao Ying was listed as one of 10 Most Commercial Retailers 2012 by China Linshop based on her innovation events’ influence, enlightenment and contributions. The events including business pattern change, entrepreneurs brainstorm, enterprise marketing, technology innovation and the like.
Mrs. Xiao Says: We open stores at the very beginning, focusing on the rule that small profit margins, big sales. When are a general merchandise retailer, it is the same, we are thinking how to bring value to our customers.
Why was Mrs. Xiao awarded
Since 2001 SPAR Beijing starts its business of opening department stores, it copied its concept of “small profit margins, big sales” from supermarket to department store. Even though, it seems this concept is out of date in this high profit department stores, SPAR Beijing made this commitment for their customers in the past 12 years and will adhere to it in the future.
In 2012, SPAR Beijing sales achieve 2.2 billion yuan, YOY increased 20%, and margin increased about 13%.
China general merchandise section is not as good as expected in 2012 because of the overall economic downturn, weak consumption capability, e-commerce challenge and the like. However, SPAR Beijing shopping center, a new star at outside of Beijing city, has successfully gain great achievement in this environment, and it’s the leading retailer in Beijing general merchandise section in terms of its development speed.
In addition, SPAR Beijing has built its fourth shopping center at south of Beijing city after its year-end promotional campaign (40 hours Continuous Opening win 130 million yuan sales in three days), starting its severe competition with BHG, Yintai Department Store in Gongyiqiao commercial circle. It’s not only the forth department store of SPAR Beijing, but also the first store which marches into the main city district of Beijing city.
As the downturn of the department store’s KPI, Neighborhood department store becomes the key opportunity for many enterprises. SPAR Beijing marches into key commercial circle from suburbs, we can say it’s business expansion, but also it proves the strong vitality of neighborhood department store. SPAR Beijing’s innovation shows a great opportunity for other retailers.