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Survey Shows That China'S Supermarket Entry Fee Is Too High To Become An Important Factor In High Prices.

2011/5/13 10:12:00 60

Supermarket Price Market

Many of the goods made in China are abroad.


Quite cheap, but Chinese consumers can not enjoy such a price. Why is this? CCTV financial channel reporter survey found that the entry fee, the Chinese "business geek" has become an important factor in high prices.

On the one hand, the entry fee continuously encroach on the reasonable profit of the manufacturer, and on the other hand, it has exploited the pockets of consumers too much. Its harm can not be ignored.

A package of rice crust 3 yuan, the supermarket earned 1.2 yuan.

In addition to "profit margin at the front desk", supermarkets also earn "background profits" from suppliers' hands through various ways such as entry fees and rebates.

A bag of crispy rice is priced at 3 yuan in the supermarket. The dealer told reporters that the factory price of this bag of crispy rice was only 1 yuan 2, and the dealer's pportation and distribution took 6 cents, and the supermarket earned the remaining 1 yuan 2.

So why do supermarkets earn so much money?

Liu Xuesong is a manager of a distribution company in Beijing. He has been supplying the supermarket for ten years.

He said, "the price of my purchase is 1.2 yuan (a bag). The price for the Wumart supermarket is 2.55 yuan, and the Wumart supermarket is about 3 yuan."

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The price is two times more expensive than the factory price. Liu Xuesong explained to reporters that on the face of it, supermarkets bought 2.55 yuan for crispy rice and sold at 3 yuan retail price, which seemed to have earned 4 cents five cents, but in fact, it was only the "gross margin" of the supermarket, and also some of the profits known as "background profit", that is, supermarkets earn money from suppliers through various ways such as entry fees and rebates.

Liu Xuesong said, "when I go to the settlement, I will give the supermarket 30% deductions from the cost of the contract, which is 2.55 yuan and 30%, and the remaining price is 1.8 yuan.

1.8 yuan to 3 yuan is the profit earned by Wuming.

Liu Xuesong introduced that various supermarkets charge a wide range of entry fees, including the opening fee, festival fee, new shop opening fee, old shop decoration fee, new product fee, bar code fee, contract renewal fee, posters fee, stack fee, information sharing fee, promoters management fee, consultation fee, promotion service fee and so on. Due to the high cost of selling all kinds of stores, since 2010, he has stopped working with the Wumart supermarket.

In the 2009 contract, the supermarket not only provided twelve percent of the deduction points, but also gave them 2 million 600 thousand sales tasks.

"But if you want to do less than 2 million 600 thousand, you have to give 2 million 600 thousand times 12 points, or about about 300000 yuan."

Liu Xuesong said.

Liu Fanping is the manager of another distribution company. He has been supplying the supermarket for ten years.

Liu Fanping said that the business with the supermarket is getting worse and worse. Because of the high fees, he quit Carrefour in 2007. "When we worked together in 2005, the Commission was 16%. We still made money, but after two years, it rose to 17.5%."

Carrefour's contract returns have risen almost two points a year.

"More than two years, a total of three million sales, to pay about 900000 of it, almost 1 million, the cost of sales accounted for more than 30%, our gross profit is only 30%.

That means losing money, so we can't do it. "

Liu Fanping said.

For the same commodity, retail sales are 2 times more expensive than wholesale.

According to professional assessment, some supermarket fees reached 40%-45%.

That is to say, the price of a product will be increased to 40% by the supermarket.

To further understand the situation of admission fees, CCTV reporters


The identity of several supermarkets conducted an unannounced visit.

At the headquarters of Wumart supermarket, a purchasing officer told reporters that the threshold was very high if he wanted to enter the store.

"Now, after the merger of the United States, the United States and the United States, the two sides have opened accounts, one side four hundred thousand.

Now is to do beauty and beauty to do Wumart.

For example, when a new product is opened, it is forty thousand to open an account, and to open accounts at the same time is eighty thousand.

The refund fee is usually between 15%-18%.

Reporters learned that supermarkets not only charge a high entry fee and a high percentage of rebate fees, but also impose sales tasks on distributors.

The suppliers waiting for the negotiations told reporters that even if the store's tasks were not completed, they would still have to pay the cost according to the amount of sales tasks.

Subsequently, the reporter came to the northern part of the Carrefour purchasing department in Beijing as a supplier. A supplier who sells cooked food told reporters that the contract return point is very high, and it is growing at an alarming rate every year. "The return point here is fifteen six points, and there are many other expenses. We will deduct this today and increase it every year."

Many suppliers told reporters that in the face of such a high entry fee, they had no profit space to digest and could only be pferred to commodity prices.

In the Fairview wholesale market in Beijing, the reporter investigated the price of six dried fruits, and found that a brand name is 4.8 yuan for each 100 grams of almond, 7 yuan for cashew nuts, 7.2 yuan for opening pine nuts, 6.6 yuan for raw walnuts, 1.2 yuan for raisins, 6.6 yuan for pistachio nuts.

At a Wumart store in Beijing, the price of the same brand has changed dramatically. Every 100g almond has turned to 15.9 yuan, cashew nuts turn to 14.2 yuan, opening pine nuts to 25.8 yuan, raw walnut meat to turn into 19 yuan, raisins to 3.29 yuan, pistachio nuts to 17 yuan.

The average price of the six products is 2.85 times that of the wholesale market.

Yao Wenhua, deputy director of the China Federation of Commerce zero supply regulation platform, told reporters that they had carried out some tests in the industry, and some supermarket fees reached 40%-45%.

That is to say, the price of a product is increased by 40%, plus the goods sold to consumers.

In the survey, reporters also found that compared to supermarkets, department stores have higher entry fees.

Chen Liping, director of marketing department of Capital University of Economics and Business, said, "what does the general merchandise industry usually return to 30%-40% for? It is a kind of cost that the producer can bring to retailers, which is a major source of profit for department stores."

Chen Liping, director of marketing department of Capital University of Economics and Business, said: "entrance fee is bound to drive up the price, and consumers pay the bill.

Some shirts cost tens of dollars, often at a retail price of over 1000 yuan.

Wang Yao, vice president of the China Federation of Commerce, said: "the cost increase rate of a garment can be 2.3 times to 12 times.

The higher the retailer gets, the higher the price will be. "

To curb entry fees "weird", we need to strengthen legislation.

The mode of entry fee, which can not be expanded abroad, can grow savagely in China. It needs strict laws and regulations to curb it.

Is it reasonable for supermarkets to charge for admission? Experts told reporters that from the current main consumer market in the world, collecting entrance fees is almost exclusively a commercial retail mode in China. It can be said that this is a truly Chinese "business freak".

Many experts say that the vast majority of modern retail profits in developed countries come from their own business and earn the difference in purchase and sale prices.

The proportion of promotional service charges to suppliers is very low, generally less than 10%.

As a result of the entry fee, many Chinese made products are floating across the sea, but their selling prices in foreign supermarkets are actually cheaper than in China.

How did the Chinese "business geek" enter into the market? Why is this mode that can not expand abroad, but it can grow in China?

Experts said that in the 90s of last century, Carrefour began to enter China, and it also brought a set of expansion models in developing countries. It earned back profits through the way of collecting channel fees and occupying loans to suppliers, and realized low-cost rapid expansion.

Chen Liping, director of marketing department of Capital University of Economics and Business, said: "Carrefour has accumulated a set of experience from developing countries such as retailers to expand the developing countries.

Carrefour's experience is basically a low cost expansion. In this low-cost expansion strategy, I think its core is to collect various admission fees.

Chen Liping told reporters that this kind of expansion by collecting fees and extending the accounts period has not been successful in some other countries.

In Japan, South Korea and southern Europe, there are more mature retail markets. The international retail giants not only have limited market share, but also are controlled by strict anti-monopoly laws and regulations.

However, because China's domestic retailing industry was not perfect in anti monopoly and restrictions on retailers' abuse of dominant position at that time, the international retail giant entered the business mode of entering fees successfully after entering China.

This kind of low cost expansion method that charges the entry fee and delaying the account period is quickly followed by the Chinese local retail enterprises. The entry fee mode has become the mainstream of Chinese business.

The Department issued a document in 2006 to curb entry fees, but with little success.

In order to crack down on entry fees, Japan's measures and regulations are both systematic and rigorous, and have finally completely improved their business environment.

What is worth learning is not only their measures and methods, but also the determination and perseverance shown by their government departments in order to maintain economic order and protect consumers' rights and interests.

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