"With carrefour and other national chains giant to China FengJiang career, drive the further development of Chinese chains, let us see true enacted franchise competitive rhythm. How to live, how to develop, how to get out of your own way to think. For this reporter also interview with French carrefour group chairman and chief executive, BeiHe can.
Reporter: now in the streets and lanes supermarket chain can be seen everywhere. These people in the supermarket to provide convenient and fast, affordable and at the same time. Even in some degree, to change people's lives, people's consumption habits, chain supermarket in China
Reporter: Mr. BeiHe can know Carrefour was translated into Chinese Carrefour. The three Chinese characters, is what mean?
BeiHe can: I think it's all families happiness mean, accurate is that.
Reporter: you in the supermarket shopping inside, from which place can experience the joy and happiness?
BeiHe can: of course, I own is the very good customer carrefour. I not only going to carrefour, and also to my opponent there. The stores are not only is you to buy something in the place, and also your life place, it is your daily needs, so must bring you joy. To the store shopping as you go to see the performance, every day we want to show, the customer evaluate you every day, so every day is the best way you go to shopping, check your shop.
Reporter: I think the quality of service, may be reflected in these more detail place. For example we at a carrefour, and may find toilet is a more troublesome thing. The area of the carrefour especially large, if go to most inside it, suddenly found to go to the toilet, he had to go out and buy something if still have to first bill, the bill, please later again the walk to the second floor, and discovered the toilet. Do you think China
BeiHe can: where is the toilet? The shopping mall outside area, our store in the rental counter in the area, with the toilet. If you need it, you may have to run one hundred m, but I think this is the greatest distance. Because we are in different position have the toilet.
BeiHe can: when you sell fresh food? When, the most important point, the customer must be sure you on the shelves of food is fresh.
Reporter: this is a kind of specific marketing strategy?
BeiHe can: like you said just now we must in the product is far from prior to maturity, take it away. When you take home products, it must have a quality of interval. So our products, on the shelf has certain quality guarantee period, but also guarantee, the customer in the products to buy home, also to have certain quality time.
Reporter: why have this policy?
BeiHe can: when you every day to face tens of client, not a big problem. But when you are facing tens of every day client, at any time added on the shelves product, will be a big problem. How to ensure shelves of products are fresh, not the old goods, where there is a large number of goods on the shelf, of course in the fresh supermarket, no this problem. Because every day thousands of customers only, like large supermarkets, the biggest problem is in a day, we want to receive tens of thousands of customers. We should always constantly updated commodity. You put the earliest expired goods, in front and you can easily check it out. The goods is about to expire, but also guarantee that when you buy the goods home, still have a lot of day can be saved. For example today is 22, 23 products, in the back of the shelf is 29. You can buy 29 because of a day is not enough to guarantee period. The best products of the circulation, this also is a kind of technology, here we can't put all the detailed situation speaking out. But we in the supply chain, we know the amount of need, we have to be automatic orders, we according to the order quantity, and organize the supply chain. So customers come to store later, commodity is also the same day at the store.
Reporter: customer service is the key part of the entire retailing, the most fundamental competition or service, because the price war or price competition, it is a kind of means one. So from a long-term competition for, or services should be competitive or permanent. For example we take a very simple example, customer in entering the store, the air is fresh degree to the customer of the a feeling. If a market doesn't do fine words and the air fresh, the customer will not feel good. So I think on customer service, should from the most basic, the finest place to explore the customer service.
Reporter: a lot of people going to carrefour shopping, or go to the supermarket shopping like carrefour, when they appear, price tag will be accurate to the points. So, like carrefour such enterprise, also known as a points to is a points in the enterprise to earn money. Mr. BeiHe can you think of a penny, the carrefour to have much significance?
Reporter: in China, people used to do in the supermarket cash, but also may not be so many consumers will care about a few cents. So, in doing this program before period, a lot of people to I reflect this situation, they also want to know BeiHe can sir, you often put on how much change?
BeiHe can: oh, upon me a penny to all have no. For I have neither the euro, also no coin. What all have no, I am a poor man. In my pocket I what all don't take
"Reporter: you why don't take a few cents? In carrefour shopping that can be very handy.
BeiHe can: I just told you, we really mind customer pocket every penny. We help them save every cent, of course, we also from a small part of our stay.
Reporter: about the problem of the price, there is an additional problem, we haven't discussed the clear, is the Chinese have a common saying that "cheap goods is not good". So how evaluation set low in carrefour, and guarantee the consumer this delicate feedback psychology? Won't affect the quality of products of the carrefour image?
BeiHe can: this is a very important problem, because the customer is for the price, but the price is not everything, and the value of the commodity prices are closely linked. This is a permanent contact. The customers are very clever, you can't cheat him. This is a very big driving force. Every day he judge you, when you sell them good price and good quality of thing, they will be satisfied. When they were satisfied, they will buy more goods. What is the most important? Is to know to low price of the operation, the highest degree of high quality and confidence. What is the most important? Every day the carrefour is customer loyalty, so this is all over the world of general rules of the game.
Reporter: actually low price does not mean that the poor quality, in fact is not only carrefour, then like good, a lot of supermarkets is to take a low price strategy. So why low price? Does not mean that the poor quality, basically have several reasons. First of all it, low price, we sell are some brand goods, also may be Coca-Cola, also may be p&g company product, may also sibao company products. Is very good. So again have a? Like these supermarkets have quite a reputation, reputation. So, it's not a brand them to other goods, also has the certain assurance. So so it will be made low price and low quality, it will not be connected together
The low cost of goods depends on control, as retail, should stand in the customer's shoes, to suppliers for all right, from the source of the products, or to please a minimum price, we are not representative of our own retail in the bargain, we represent the interests of consumers, for customers in the bargain.
BeiHe can: so you must provide good commodities, fresh goods, the best price. I must say that it is a permanent experience, which is the life of the retail business. This is why? We and a lot of products are cooperation is to find out more goods. To ensure that these goods is a satisfaction. And that they and recommend them out of all the supporting new goods, so customers can in our shelves selection and comparison of these goods and their prices.
Reporter: a supply to discuss some of his mingled with the feeling of pleasure and pain. "Happy, because there is such a supermarket chain, their sales continue to grow. The pain, it is because in the negotiations with the supermarket, he felt was a lot of pressure. Mr. BeiHe can, in general, carrefour is how to face your own suppliers?
BeiHe can: you have to reduce your costs, to ensure your low price. This is a long-term challenge for all of us. Pay less, get more. But it's easy to say, but very hard to do. So this is we face the pressure, this is the pressure from clients, because the customer give us pressure on, the client will say you should give me more things, and I just want to pay less money. Of course the customer is, this is the attitude is normal. He must say, you carrefour, must make me feel more satisfied, because this is my money, I get what you should give me anything, so basically said, in my between colleagues, it is a fair competition. Is to satisfy the clients. Now we talk about this pressure from customers, and now the pressure from our suppliers and negotiations, and between supplier and I think that in between us, to build up a win-win ties. Of course we need that kind of ability, to negotiate the price of our products. Of course, the pressure from customers? We'll have to bring it to the supplier body, our product is low and high quality. Once again, suppliers will need to make industry modernization. Because this is a modern economic environment, you said this is a are hard and happy feeling, this is it. This is the life, the negotiations and bargaining, fill us every day life. This is a power. So this is a fair negotiation. Fair of negotiations, and we must is win-win negotiation. Because in the whole change inside, the whole of the inside of the supply chain link. If making no money, everyone affected, so our common objective is to make the customer satisfied, I and my colleagues also started competition, of course, it is also full of passion life.
Reporter: BeiHe can sir, you your own products is the buyer carrefour? I mean you personally have no negotiations with others?
BeiHe can: I remember twenty years ago I was a buy a hand. I with a wine supplier negotiations, there is a kind of wine quality is very good, but the price is higher. He said that if use this price sell to you, I have to lose money. I said, no, I will that wine. But I'll give you a bit higher price, because in general, there is a price is just come into the market price. I also know that a supplier, its quality is very good, so you can see out negotiation is not easy. Of course negotiations is like a sport. Of course it is not the corner, because in the corner, you can't negotiate with the corner. But you must negotiate a, I think that's a positive thing. Through the conversation you have all sorts of progress.
Reporter: a lot of suppliers, give me messages of this news, said carrefour with others for the talks, to give people the impression, they have a basic principle, is to put the supplier forced into a corner and give him a sweet treat. Generally speaking, you negotiate with suppliers, with what kind of method, let them back to back, finally stand to the corner?
BeiHe can: I think this is not war, because the war is a fight, is actually a kind of discussion cooperation, for competition, not in retailers and suppliers. Competition is actually between suppliers and retailers in between. You must strive for every day of the best retailers. This is life, let my if no negotiations, no forced into a corner. We can't progress, it becomes a dream. Sometimes it is difficult, sometimes our competition, is selling better than we cheap, we also have to reduce your price. So for me is a wall, is also pushed me into the corner. In this case I will not return to me before the supplier to speak to him, I'll have to talk to you about the price. Sometimes he agree, sometimes he opposed. Some time, they give us some interpretation work. Sometimes they timely innovation, out of the new product, we know that their new products, often can be profitable. Because in modern economy in, innovation is an important part. Innovation brought you value, innovative products than the old products, also have more value.
"Reporter: how do we see our chain enterprise, such as because we positioning is manufacturing enterprise, that we must find a good mainstream channels of our products quickly distribution. So he went down to we choose, we also to choose, just talked about sports, I don't like wal-mart or carrefour. It should be all right is a World Cup, the reason we crowded in, if you can go in the World Cup, as if even this threshold. You have no access to it, you will never enter the mainstream channels. You can't do a worldwide brand. Because its points, but a sale system for your requirement of each other is very high, because this year we talk with carrefour is one of the biggest single is $26 million. In China last month signed. He and we have eight requirements, the eight requirement for a first many enterprise is screening down. First, do you have any export authority. The second one, do you have the eu's quota, have you ever large-scale manufacture, your rapid response ability, you low cost control. You are a very good products, and it also want to profit words. It don't you this product, it as a supermarket, it feels that its image and no....... China sell so well, the world sold that good products in the supermarket, you can't see.
This is generally speaking, forced into a corner and give some sweets.
BeiHe can: I agree with your point of view, the negotiations is not everything. Because when you have the cooperation of time, have a lot of things we can do together, the negotiation is a part, is the World Cup. But more important than the negotiations and the World Cup is cooperation. This cooperation to bring the long-standing interest.
BeiHe can: I think this percentage is not correct. Because the market depends on customer, for the customer for, he whether foreign brand, or local brands, depending on the brand of quality and service level, so we think, brand occasion is equal. Whether domestic or foreign, I will tell you a story, when we enter the Chinese market, at that time we have saved in Taiwan much experience. Taiwan province and is already the leading retail enterprises. And then entered China, say so, we in before entering the China market, there have been some related experience. So, says the international brand and domestic brand, share percent, I don't agree. In China's retail business has a strong competitive power. And the international retailers to participate in the competition, so in carrefour came in, bring a lot of advanced technology and experience. This is a win-win cooperation. China's retail enterprise has been learning and copy a lot of carrefour management experience, I am confident that I will have some Chinese are very good retail enterprise, from the Chinese nature for, they are very good operator, they must be in the retail trade will do a good job. So the domestic enterprise competition, will also is very fierce. Of course we have international competitors, like wal-mart, this is a kind of open the game. So as you know, we in the world in more than 30 countries, with our store, we in Europe and Latin America are retail the leading enterprise. We in all over the world are faced with competition, but I must say that nothing is forever in the retail trade gain. There also is what is lost forever. And then we'll bring other advanced technology.
Reporter: we know carrefour in the global market, ranking second in sales, you think carrefour in China, will be standing?
BeiHe can: I don't know exactly what ranking. I believe in China the first is the lianhua. It is possible that the first foreign capital enterprise. I don't know what these Numbers, my colleagues should know better than I. I don't think we can is the first. I think this is a good thing. For the first words, always come together around a lot of rivals, have local rivals in ahead of us, that will be a challenge for us. As you just talked about the World Cup, do first is not the most important. The most important is continuous progress.
Reporter: Mr. BeiHe can, you have for Chinese enterprise, chain supermarket enterprise wants to developing quickly, do strong, any Suggestions?
BeiHe can: I think they know what their industry of the deep, no real advice. We have the same problem and the same solutions. In fact for the retail enterprise, it is not important from one country to another country, but in different countries, the real success. Maybe today by the presence of a local retail enterprise colleagues, tomorrow I'll in another country met them, in Asia, in Europe, in Latin America. Because the Chinese are very excellent businessman in many countries, you can see a Chinese stores and supermarkets. Their response was very rapidly, adapt to the market very quickly. Such based on the quality of the competition is really make a person very pleasant. I said again, the real challenge is to find the right candidate. And training them.
Reporter: may we Chinese with your understanding not quite the same place, is that Mr. BeiHe can appreciate Chinese can put special store open to all over the world. Chinese appreciate BeiHe can send the same shop Mr Open to all over the world.
BeiHe can: as you know, as you just mentioned, carrefour is the most international of a retail enterprise, it means to say, we have a long international experience. Retail is the attention to detail, persistently to understand customers' needs. And then adapt to each different countries, to succeed. In China, you is to Chinese, in Mexico is the Mexico. So on, it is based on the experience of all, is the experience of the employees all over and responsibility, in developed countries, such as China or is, the high-speed development of the country the demand of customers, is the national progress power. In the past economic chain retail just the last link, but today has become the modern economy retail power. Because we are away from the customer recent, and customer is the power of the modern economy, because it is the customers to decide, they need to kind of product. They promote progress.
Reporter: today we have been talking about the same subject, is how to meet the needs of the consumers, who are our customer, we serve for who.
BeiHe can: we saw this country, have a dynamic and the development direction, have very good optimistic development opportunities. We share with everyone, this rare opportunity. Because basically, when you were in the best economic conditions, the more people will have money, you will have the ability to buy, the purchasing power would be concentrated in the commodity consumption. And commodity is demand, is the growth of the customers, so there is no reason why we are not optimistic, we must work hard, this is our problem. We must work hard.
Reporter: today we will talk about the BeiHe and Mr. A lot of supermarket chains of how to do the successful experience. That I want to leave us a very conspicuous impression is that all of the supermarket chains are trying to meet the demand of customers. And in some degree, to change the people of the inherent things view. I think, this kind of meticulous care and consideration. In meets the consumer, but also we will be the supermarket chain, bigger, this also may be we Chinese supermarket chain, should learn from place
"An MBA case: play to a higher level of performance-enterprise to keep key employees
No matter in what kind of a team or organization, there is always some employees belong to the key figure, their enterprise strategic target realization play the indispensable role. They are "key staff". The futures of key staff and role of enterprise performance and future development of all are the most important influence. How to let the key staff in the effective management, the worker pay attention can also play a higher performance?
Make good use of the key staff three key point
1. Develop. Key personnel training focus is to reserve team of the training, enterprise value orientation to select identity, high quality, and have the potential to reserve personnel in a planned way to give the key develops, and gradually form the key staff team of the staged structure, thus continuous effectively support groups strategic target realization.
2. Retained. The key staff keep there are two points: people keep and people got the resources reservation. Keep in mind a "key". To create the good harmonious enterprise culture atmosphere, the pursuit of organizations and individuals in a win-win situation for the root of the heart "". How to put personal advantage into enterprise advantage is the top priority of the key staff reserves, such as key staff have core technology, accumulate experience, personal reputation, customer relations. To strengthen the team building personal advantage transformation is one of the effective approaches, the team make personal role is limited, team resource sharing in order to spread and reduces the organization for the dependence of the individual. Another effective way is to strengthen the absence of standard management, such as customer relationship management system, through the personal resources system records, sorting, share and preserve, and become enterprise resources and advantage.
3. Incentive. Key staff the organization's loyalty, performance management, pay by working environment and atmosphere of the influence of three very great, so incentive work can focus from the three aspects, namely the key employee performance management, compensation management and environmental atmosphere. (1) key staff performance management is strategic performance management. Through the analysis of the key success factors to achieve their strategic, we can determine the enterprise of key performance indicators, and then define key employee tractional performance indicators and their main activities and enterprise strategic closely, ensure the performance contribution directly support enterprise strategy. (2) employees return include economic and the economy two kinds, and a short, medium and long-term points, to key staff salary management shall we consider long-term compensation scheme, so many companies are now implementing employee shareholding plan and plan is based on this consideration options. (3) build proper environmental atmosphere, is the key employees play high performance, is fundamental to retain key employees of important factor.
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