Know Ourselves Calmly

In recent years, China's circulation industry has been developing rapidly. The annual growth rate of the volume consumable retails exceeds that of GDP. Retailing, as the terminal channel for circulation, is playing an increasingly dominant role in the development of upper-stream industries. With China's access to the WTO, and the quickened reform and open-up in China's retailing industry, foreign retailing magnates have sped up their business operation in China's markets. Under such circumstances, China's retailing industry is in face of great tension and challenges. Especially since the end of last year, when the retailing markets were completely opened, foreign retailing enterprises began their overall markets expansion in China. Thus, China's retailing industry has been caught in intense competition. How to develop China's retailing industry in such a difficult situation has become a key issue in today's overall-opened markets and this is also the writing meanings and research aim of this article.Long Yongtu, secretary-general of "Boao Forum for Asia" pointed out that, the competitions the retailers will face in the future is not the competitions between Chinese and foreign retailing industries, but those between the "successful" and "unsuccessful" retailers. We shall not overstate the influence of foreign retailing enterprises upon China's retailing industry, nor shall we underestimate the strength of China's retailing enterprises. Confronted with the new situation created by foreign retailing industries, we should update our concepts and be out of four misleading areas: 1) out of the retailing industry; 2) out of the situation, operation mode and concept of traditional retailing industry; 3) out of China's retailing markets and 4) out of urban retailing industry, instead,turning to rural retailing industry.McKinsey holds that generally there are three choices for local retailers on a newly-emerged market to cope with transnational retailing magnates: giving up, becoming partners or counterattack. Recently China's Chamber of Commerce released a report on the analysis of and comparison between the competitiveness of Chinese and foreign retailing industries. It pointed out that there exist gaps in six aspects, namely, expansion capacity, marketing skills, cost control, finance operation, talents accumulation and brand value between Chinese and foreign retailing industries. It also put forward four suggestions on how to develop China's retailing industry, that is, fostering large-scale national circulation enterprises, governmental policies for support, guidance in formulating development plans, stressing on talent cultivation and brand construction.By taking qualitative and quantitative methods, exemplification and comparison, this thesis conducts a thorough analysis on the general situation of China's retailing industry, the development of foreign retailing enterprises in China, and further puts forward suggestions and counter-measures on how to develop China's retailing industry in the present time.This thesis falls into three chapters:Chapter One carries out an analysis on the generalities of China's retailing industry. It firstly reviews the development of retailing industry in the reform and opening-up period and looks into its further development. This part indicates that there exist some problems along with the rapid development of retailing industry in the present, which influenced the development of China's domestic industry and itscompetitiveness with foreign enterprises. However, China's retailing industry is not so "weak" in face of the coming conflicts. It is the prior task of China's retailing industry to realize and grasp its advantages so as to make them into competitive strengths.Chapter Two is the analysis on development of foreign enterprises in China. China's sustainable and rapid economic development and vast market potential are attracting more and more foreign retailing magnates to develop in China, which consequently results in the internationalization of China's retailing co...