Is Wumi And Metro "Marriage" Worthy Of Blessings?

Offline retail battleground is becoming more interesting as Wumart acquired Metro China. On the night of October 11th, Metro, Wumart and multi-point Dmall jointly announced that Wumai had signed the final agreement with Metro Group to acquire Metro China holding rights.

After the completion of the transaction, Wumart group will hold 80% shares in the joint venture set up by both sides, and metro will continue to hold 20% shares. Many points will become Metro China's technology partners.

However, the two sides did not disclose the specific transaction amount. However, according to Reuters's previous reports, the total value of Metro's Chinese business is estimated to be 1 billion 900 million euros. If 80% of Wumart's shares are all cash transactions, it is estimated that the transaction amount will be 1 billion 520 million euros, equivalent to 11 billion 900 million yuan.

　　 A beautiful conspiracy.

The marriage between Wumart and Metro China can be regarded as a beautiful collusion. First of all, for metro, Wumart is "good husband".

For ideal partners, Metro has a specific "portrait": first, it can make Metro closer to customers, increase digital drainage and customer visits; two, it can help Metro upgrade rapidly in digitalization, achieve innovation in the implementation and delivery mode of orders, and three, it can help Metro obtain more marketable goods and improve supply chain.

In the face of a mountain than a mountain high bidder, wumi financial strength and digital transformation of the actual combat experience is strong, in line with Metro's "mate selection" standard.

According to the retail boss's internal report, the acquisition of Metro before the Wumart actually is not bad money. It has gradually solved the funding problems of acquisitions, shares and other funds by issuing corporate bonds and obtaining bank credit, and provided a strong guarantee for the final acquisition of Metro.

And the entry of multi point Dmall makes Metro more heart stirring. Compared with the digital solutions provided by the Internet platform, many of them are familiar with offline business, and the digital empowerment tools are more suitable for store operations. This is the bargaining chip between Wumart and traditional retail giants.

It is understood that many points have successfully hand over a number of regional retail leader, and even the global retail giant WAL-MART. At present, WAL-MART in Beijing's Xuanwu store has also launched multi-point APP, multi-point intelligent cash register equipment also appeared in the store, three km around the Xuanwu store users can buy WAL-MART products on multi-point APP.

For the lack of digital operation capacity of metro, wumi and multi point joining will help Metro China further improve. For Wumart, Metro did not have Carrefour's high degree of attention, but it also went to the hall and the kitchen.

Public information shows that in the fiscal year 2017~2018, Metro China's sales increased by 2.7% to 20 billion yuan. In fiscal year 2018~2019, sales are expected to grow by 5.4%, double the growth rate. In other words, suning.com's financial pressure is much lower than that of its continuous investment to make up for the loss of Carrefour's business.

Besides, Metro's focus on the B terminal business value and real estate value of Wumart is also the focus of the outside world. But the winning network thinks that the more important thing is the strength of Metro China in commodities.

It is understood that Metro not only has high quality imported goods and its own brand, but also has been the benchmark for food safety control. Data show that Metro has more than 760 wholesale stores and food distribution businesses in 35 countries worldwide. Through strong procurement capability and low cost operation, it provides customers with high quality and low price imports. This is also an advantage that wumi does not have.

In addition, Metro has long adhered to high standards of food safety control. At the same time, it has traced more than 4500 traceability products, including fruits and vegetables, livestock and poultry products, dairy products, aquatic products and comprehensive products. The sales of fresh products in traceability products accounted for nearly 60% of Metro's. And Metro said earlier that it would be able to reach 100% fresh food in the future.

Commodities have always been a short board for local retail businesses. If Metro is returned to its headquarters, wumi is expected to better promote the supply chain's low cost and standardized development in the upstream and make more profits to the supply chain.

However, wumi's hand in hand with Metro China is just the beginning, not the end, and the subsequent integration deserves more attention.

　　 A new trend of retail sales reflected in a purchase case

Offline retail ups and downs, smoke has never ended. On the other hand, the online giant's horse racing enclosure swung the sickle under the line, and the other side was the retreat of the local retail enterprises and foreign retail enterprises, or the acquisition, selling, or innovation. No matter how the map evolves, new consensus is emerging.

Under the general trend of domestic consumption upgrading, the contention based on "commodity power" will be the watershed of the second half of retail sales.

First is the scramble for imported goods. In the past two years, Wuming has increased the proportion of imported goods from SKU to display area. Quality import commodities are constantly appearing in local retail enterprises. The fundamental reason is that consumer demand is increasing rapidly.

The BLT supermarket of Huarun Wanjia Ole is mainly made up of imported goods, accounting for 60% of the total, and most of the products in the fresh area are small packages, which focus on art and beauty, more like artworks instead of ordinary fruits and vegetables, attracting white collar workers working nearby. In addition, at the beginning of last year, WAL-MART announced the strategic layout in 2018, including strengthening import commodities to highlight differentiated competitive advantages.

The second is to increase private brand building. Because private brand is conducive to accurately grasp market demand and master more autonomy, it is welcomed by more and more retailers. The development and sale of private brand has become a widely adopted strategy for offline retailers.

In Metro supermarket meat, fruits and vegetables, seafood and other counters, consumers can see "Mai Da Da" everywhere. The greater characteristic of Mai Da is its traceability. Its role is to ensure that farm products from bases, farms, processing, logistics to sales are in line with the most secure requirements of consumers.

Mai TDA has a good reputation for metro, which is similar to its own brand in retailer's self utilization, giving full play to the advantages of intangible assets of enterprises, and has also produced good reputation among users. According to the customer survey conducted by metro in 2016, about 80% of the customers are very familiar with Mai DA and traceability system. Nearly half of the customers are more likely to buy Mai Da products in similar products, and 13% of the customers only identify Mai Da Da products.

For new retail species, the pursuit of private brand is more intense. Last year, the horse and horse gave birth to a private brand that hopes to achieve more than 50% within three years. The supplier is buying boxes and boxes to buy out the right to supply a single item. All the business risks are borne by boxes. Box Ma believes that the world's successful retail enterprises own brand accounted for about 50%, which is the only way for the successful retail enterprises all over the world today.

Finally, a supply chain system with direct production is established. In the context of growing demand for fresh aquatic products and fresh fruits and vegetables, direct picking can better satisfy consumers' needs.

By the end of August this year, the box office jointly signed the rural Taobao, signed nearly 500 agricultural products bases in the country, so that only 28 days of bamboo shoots from Guizhou, only 40 days of Xinjiang hanging dried apricots and only 18 tons of Shanghai's "local faba bean", quickly entered the box area dining room table through box horses, so that more than 20 million boxes of housing households lived happily.

For Suning, the place of origin is the king of fast dissipation. Take fruit as an example. Since the beginning of summer this year, the price of fruit has been kept high, and consumers are crying for losing fruit freedom. Sunning, through cooperation with farmers, directly picked up the source, saved the circulation links in the middle and guaranteed the interests at both ends, thus creating an integrated closed loop supply chain with farmers' planting as the source and consumers' table as the terminal.

No matter how the outside world evolves, commodities are still the essential factors that constitute the competitiveness of retail enterprises. Returning to the source and reshaping the competitiveness of commodities has become a highly preferred choice.