1,Is shopping in Walmart out of fashion nowadays in Chinese young people?

After moving to a new apartment,it’s 5 minutes walk to my office and 10 minutes’ to the nearby Walmart. Friday night after work,I decided to go to Walmart to get some new stuffs for my apartment. Actually,I can’t remember when’s the last time to visit the supermarket because everything I need in daily life could be booked online or get from the neighborhood convenience store easily nowadays. Also it’s terrible to imagine that a single girl to carry a big bag of apples or tomatoes or a box of watter with high heels instead of ordering it online with someone delivery to your door directly.As a walm- hearted handsome guy, your first thought probably not to help but wonderring : what’s the problem with her ? why doesn’t she purchase it from online now ?

Anyway, I was quiet shocked at Walmart at night being surrounded with so many senior citizens especially it’s discounted time for some vegetables or cooked food at night.I decided to leave quickly with only one bag of bread which usually take from SEVEN-ELEVEN and visit it another time in any case it’s only 10 minutes to my place.

Next day was Saturday and it’s more or less the same case. Monday back to office, I talked about it with my colleagues and they were so surprised, not for supermarket,but me.Because I was still visiting supermarket nowadays which sounds so old fashion like their old parents style. Well, it’s a joke from them and I’m not that old as their parents as well, given most of them are young girls without cooking everyday especially so convenient express everywhere, no wonder for their surprise.

Surely it’s not a single case for me, given the truth that multiple choice of online products with reliable quality and low prices as well as excellent express service in China,not to say every 500 meters there’s a seven-eleven or LAWSON. It seems that only the senior citizens that there’s plenty of time for them to take a walk in supermarket for discounted foods at night or because they’re not so familiar with the online shopping yet. So is Walmart out of fashion for young people and becoming a senior citizen’s supermarket now?

As the fast growth of e-commerce, life is not easy for the traditional retail business,even for the retail giant as Walmart. Let’s list down several threats facing to supermarkets in China at first:

1) Close-set convenience stores

Nowadays, mini-stores like SEVEN-ELEVON or LAWSON are located nearly every street or business center or neighbourhood area,from fresh fruits or bread to toothbrush even public service like utilities bills or phone charge.etc almost everything needed in daily life is available there. Take the seven-eleven as example, by using big data management, their menu of goods are changing from location to location.You may don’t know that their supply of products is at midnight,which is more cost-effective and efficient. And even more interesting is that seven-eleven is not only a store,but a training corporate which’s training whoever wants to join it.It would be a tough way for traditional market to compete with this kind of flexible,convenient and cost-effective stores and gradually lose the cost advantage which is due to its economies of scale.

2) Fast growth of E-commerce with new retail business in China

It’s said that Jingdong would shorten the delivery time to 15 minutes, if that’s come ture, there would be no more reason for standing in a queue.Thanks to Taobao,Jingdong Mall and Amazon, almost everything which used to purchase from supermarket could be order online now with easy Alipay or wechat payment as well as the super excellent express delivery. You’re seeking trouble for yourself to take heavy bags from supermarket given that you’ve already aware of that someone could help to delivery to your door.

More than that , the E-commerce giant begin their retails business as well.As reported on Nov 20th 2017,Alibaba has announced to aquire 36.16% of Sun Art’s share by 2.8 billion $, which means the e-commerce giant in China starts its new journey on new retail offline business competing with Walmart directly now.What will Walmart response to it then ? We will see.

2. It is not so bad for Walmart in China,correct ?

If you’re beginning to lose faith for Walmart, you’re worrying too much. From the financial report of the 2nd quarter of 2017(1st May – 31st July) provided by Walmart, the total revenue is 123.4 Billion $ with 2.1% increase than last year and 124.4 Billion $ excluding impact from exchange rate,and EPS is 1.08 $ slightly higher than past year. As for Chinese market, the sales has increased 2.5% steadily. The business of Walmart is still going on well even though the impact from above mentioned. Walmart would never give up the huge opportunites in Chinese market.

1) Cooperation with E-commerce of Jingdong

Given the special paying habit and environment in China, Walmart has to cooperate with Chinese local e-commerce corporate instead of doing it itself. Till financial Q2, records shows that there’re already 134 stores allocating in 18 cities have joined the e-commerce platform of Jingdong which stimulating its sales of frozen food,fresh fruits,vegetables.etc.

2) Low inventory with strong bargaining power

There’re lots of advantage as being a business giant,and strong bargaining power would be one of those.Walmart is good at negociating with it’s suppliers which enable it to continue the low price advantage focusing on the high sales products and clean it’s stock quickly.It’s still the first choice for many traditional customers.

3. Could it lead a fashion living style in traditional Walmart market ?

One afternoon at office, I walked downstairs to LAWSON for a break on the 1st floor of the building and ordered a coffee with one banana as usual.Suddenly I realized that the price of one banana in LAWSON is 5.00 ￥while the same money could afford one kilogram of banana in Walmart 5 minuest away walk.Still it’s not a good choice for me to visit the supermarket for banana during working time even only 10 minutes.Because it’s easy to explain to my boss for 10 minutes break in the downstairs store but not the case for 10 minutes in Walmart especially when you’re taking a bag of banana.

What would happen if Walmart become a fashionable living center ? Imaging that there’re reading tables on the bookrack area,the sales of drinks would increase if it’s allowed to have it inside supermarket.Also,when we find that there’s comfortable sofa in the vedio area with the popular games and TV shows,more people would prefer to stay for a while.And if fast food,take-out area could provide comfotable seat for lunch or dinner,it won’t be necessary for discount of cooked food.Meanwhile,supermarket could have the chance to cooperate with taxi corporation for free or discounted price for it’s customers.

A indoorsman could stay at home for a whole weekend for TV,games, or surfing.etc or he could go to a place with free video,reading, cooked food nearby and drinks, of course chargeable and nothing is free,when he left, he may put some breakfast in his shopping cart or take two gloves for his grandfather or something else. When he walked out of the door, he realized that forget to drive today, and the waitress ask if need to arrage a taxi. "What a good idea and a fantastic day ! " he must tell himself,and that place called Walmart,not only for shopping, but a second home for him now.