陈智高 and 王明月 discuss the reasons behind 永旺's eight consecutive years of losses in China and analyze the deeper issues of Japanese supermarkets struggling to adapt to the Chinese market.
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《English Translation》王明月: Master, have you heard? 永旺 has been losing money in China for eight consecutive years and has recently closed several more stores. Once a popular Japanese supermarket chain, why has it fallen into such a predicament?
陈智高: The problems of 永旺 reflect the overall struggle of Japanese retail in China. The core issue is that it has failed to adapt to the rapidly changing consumer patterns and business logic of the Chinese market.
王明月: Indeed, China's retail industry is fiercely competitive today. Models like Hema, Sam's Club, and Pinduoduo each have their own strengths, while 永旺 seems to be stuck in an awkward position. It is neither a high-end membership-based supermarket nor does it offer extreme cost-effectiveness, and it doesn't even have an advantage in the supply chain.
陈智高: That's exactly the key issue. China's consumer market has become highly localized, and the rise of e-commerce and instant retail has gradually diminished the appeal of traditional supermarket models. 永旺's initial success relied on 'Japanese sentiment' and 'uniform price promotions,' but these selling points are no longer effective in today's market environment.
王明月: Moreover, 永旺 insists on importing a large number of Japanese products, leading to excessive inventory and high costs. In contrast, domestic retailers are more flexible and can quickly adjust strategies. For example, Sam's Club develops high-value private-label products, while Hema leverages its supply chain advantages to provide the best fresh food experience.
陈智高: Therefore, if 永旺 wants to break through, it must identify real market demands instead of sticking to outdated business models. In Japan, it has begun developing senior-friendly malls focused on the needs of elderly consumers. Whether it can find a similar breakthrough in China will be crucial.
王明月: Then, could it shift towards community-based development, offering services more closely integrated with local lifestyles? For example, combining smart delivery, instant retail, or even adopting the customer service model of 胖东来 to win with high-quality experiences?
陈智高: That is one direction, but ultimately, 永旺 needs to establish a true 'value anchor' in the minds of consumers. If it cannot provide an irreplaceable core advantage, its difficulties will likely remain unsolved.