Día
The last day we had a conference with the manager of Dia company and he told us that Dia is the Leader in Hard Discount in China. They has 6833 stores and 47,557 employees. The key to success of this supermarket is the offer of good value to lowest Price.
In this conference we heard some interesting things, such as .the core business is to dominate the value chain of distribution, as well as being specialists in finding and negotiating with suppliers. His whole system is designed in productivity that is why their stores are not very showy. Besides they have three barcodes, that are use in the products to make it easier their identification.
When Dia entered in the Chinese Market had 5 difficulties:
The first one was the brand itself: here we saw that there was a perception problem, as the Chinese do not believe in the brand.
The second was to have supermarkets in urban areas.
The third was the difference in cost structure in Europe, this was not favorable for the discount.
In Europe 7% are labor cost and rental cost 4%, while in China is 5% and 8% labor cost of rental cost. This makes China more expensive and has a future with the raise is more damaging.
As the fourth difficulty was found very Fragmented Market. They founded Difficulty top lay Synergies. The logistics are very complex abd opperation Local suppliers and still are very regional.
Comentarios desactivados en Día /
10 Mar 2013
por
Carolina Marianela Giannoni Melosevich
MBAftmad /
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