Why did E Mart withdraw from China? Which country is E Mart Why did E Mart withdraw from China

According to Yonhap News Agency, South Korea's New World Group's hypermarket e-mart is nearing the end of its business in China. E-Mart said on the 29th, "The ** of 5 stores in China has been approved by China**, and the acquisition of Thailand's CP Group (CP Group) has been officially completed." "E-Mart entered China in 1997 and has been operating in China for 20 years.

In May this year, the group's senior management came forward to confirm that "E-Mart supermarket will fully withdraw from the Chinese market".

According to E-Mart's explanation, 5 of its 6 stores in China were acquired by CP Group, and the remaining 1 has actually completed the withdrawal of its business in China because it can be sold at any time. On the 8th of last month, Jung Yong-jin, vice chairman of South Korea's New World Group, said, "E-Mart is withdrawing from its business in China, and it should be completely completed by the end of the year." ”

E-Mart has been operating in China for 20 years, and its branches were approaching 30 at one point. However, since 2011, due to poor business conditions, E-Mart has begun to restructure its business in China. At present, there are only 6 left.

Last year, E-Mart lost 21.6 billion won (about 100 million yuan) in the Chinese market, and from 2013 to last year, E-Mart lost a total of 150 billion won (about 900 million yuan). According to an earlier report by Yonhap News Agency, some analysts believe that the failure to localize stores and brands is the main reason for Emart's withdrawal from China. Tensions between China and South Korea have continued since South Korea deployed THAAD, which has made E-Mart no longer expect to experience more setbacks.

I believe that South Korea's deployment of THAAD has led to opposition from the Chinese people, so the boycott of Korean products has led to the dismal operation of E-Mart and its withdrawal from the Chinese market.

E-Mart Supermarket, a large integrated supermarket under South Korea's Shinsegae Group, was forced to continuously adjust its performance due to its continued deficit, and finally withdrew from China.

Exit the Chinese market.

On May 31, 2017, Jung Yong-jin, vice chairman of South Korea's New World Group, said that the group's E-Mart supermarket would fully withdraw from the Chinese market. This is the first time that the group's senior management has come forward to confirm since it was announced that E-Mart Supermarket would close its business in China. It is reported that E-Mart Supermarket entered the Chinese market for the first time in 1997 and has been operating in China for 20 years.

Withdrawal on all fronts. According to sources in South Korea's distribution industry and investment bank, South Korea's New World Group's supermarket brand e-mart has recently sold five of its stores in Shanghai to Thailand's CP Group, and the last one will also be sorted out by the end of the year. As a result, E-Mart will withdraw from the Chinese market after 20 years of operation in China.

According to South Korea's "Asian Economy", citing Yonhap News Agency, New World Group Vice Chairman Jung Yong-jin said on August 24 that E-Mart would withdraw from China by the end of the year. It is reported that E-Mart entered the Chinese market in 1997, and the number of branches was close to 30, but due to the continuous deficit in performance, it was forced to continuously adjust the structure, and only 6 stores remain. According to statistics, in 2016 alone, the loss in China reached 21.6 billion won (about 100 million yuan).

After 20 years in China, E-Mart Supermarket finally chose to leave. Recently, Jung Yong-jin, vice chairman of South Korea's New World Group, said after visiting the New World Group Career Expo at the Korea International Exhibition Center (KINTEX) that its supermarket e-mart will withdraw from the Chinese market across the board. This is the first time that the group's senior management has come forward to confirm since it was announced that Emart would close its business in China.

An unnamed person familiar with the matter told the first financial reporter that E-Mart had previously sold some stores in China, and currently it has only 6 stores left in China, and E-Mart China business has been looking for suitable buyers, and the idea of withdrawing from the Chinese market should have been around for a long time. As of press time, E-Mart China said that it would not respond to this matter for the time being. Not only E-Mart, but also foreign retail giants such as Rakuten and Dia Tiantian have successively reported news of business adjustments in China.

E-Mart China has also actively made transformation adjustments. E-Mart once told the first financial reporter that ** does not mean that E-Mart will give up the Chinese market, stop loss is for better development, if there is a suitable peer, E-Mart will not hesitate to make acquisitions, in order to expand its territory in China. In 2015, E-Mart entered the Chinese e-commerce market, joined hands with NetEase Koala Overseas Shopping, and settled in Tmall Global to open E-Mart official overseas ***.

According to the data of the Shanghai Chain Store & Franchise Association, 199 hypermarkets in Shanghai achieved sales of 10.1 billion yuan in the first quarter, and from the average sales of a single store, E-Mart was at an average level, with 4 stores achieving sales of more than 200 million yuan in the first quarter, and the average daily sales of a single store exceeded 500,000 yuan. It's a pity that there are only a few stores, and it is no longer easy to buy. Zhou Yong, director of the retail research center of Lianshang.com, pointed out.

In May this year, the "2016 Top 100 Chinese Chain Stores" released by the China Chain Store & Franchise Association showed that in 2016, the sales scale of the top 100 enterprises increased year-on-year, which was the lowest growth rate since statistics. There were 34 enterprises with negative sales growth, an increase of 3 over the previous year. The number of newly opened stores in department stores and large supermarkets has decreased as a whole, and the adjustment of existing stores has accelerated.

"If E-Mart really closes all its stores in China in the future, then financial compensation will be an issue. In addition, we can see that the focus of E-Mart's overseas business development in the future will shift to Southeast Asian countries such as Vietnam and Indonesia, which are performing well, because the local market conditions are very similar to the booming Chinese market in the 90s of the last century, which also allows E-Mart to shift the direction of business development. Shen Jun, a senior retailer, analyzed.