Auchan Group's development strategy and management characteristics

Auchan Group's development strategy and management characteristics

1. Invest in construction to expand the market, optimize the environment and promote the economy

In 1996, with the help of the China Economic Liaison Center of the International Department of the CPC Central Committee, Auchan Group took its first step in developing in China. After careful investigation and research in Shanghai, Beijing and other places, Auchan decided to open its first large supermarket in Shanghai, considering the good investment environment and mature market development in Shanghai. With the recommendation of relevant departments of the Shanghai Municipal People's Government, after negotiations with Shanghai Food (Group) Company, Wujiaochang Group of Shanghai Yangpu District, an agreement on mutual benefit and common development was reached, and a cooperative company was formally established in April 1997. With the efforts and support of all parties, Auchan's first large supermarket in China, Yangpu Zhongyuan Store, opened grandly on July 18, 1999.

The opening of the Zhongyuan store broke the old pattern of no large-scale commercial facilities in the Zhongyuan area of ​​Yangpu District, Shanghai, optimized the shopping environment for residents, improved the quality of life, and promoted the economic development of Yangpu District. In 2002, the Zhongyuan store and Changyang store had a total sales of more than 830 million yuan and tax revenue of more than 15 million yuan, making significant achievements in the economic development of Shanghai. At the same time, the successful development of Auchan's business has also driven the development of surrounding real estate and other industries, forming a new business district and becoming a highlight of local business.

Currently, Auchan Group has opened seven branches in China, with a total investment of more than RMB 800 million in China, contributing to optimizing the local economic environment.

2. Advanced concepts to manage and own brands to promote marketing

After entering China, Auchan Group brought Auchan's high-quality service concept and advanced management model to China, improving the management level and service concept of the mall. Auchan regards providing the best service to customers as the most important task in its operation. According to the expectations of consumers, it sells high-quality products to consumers at competitive prices and provides new products on the market to consumers in the shortest time. It pays special attention to the coordination and orderly connection of each link in the operation, and scientifically manages each link in the operation by combining manual and computer intelligent management. In the layout of the mall, Auchan strives to find ways to save consumers' time, facilitate consumers' shopping, and enable consumers to shop in a practical, clean and comfortable environment. Auchan's business style is to respect consumers, receive them politely, patiently listen to their opinions, give necessary explanations and help, and be responsible for handling the problems raised by customers.

Developing private brands and green marketing is a new trend in the development of modern business. Auchan Supermarket is a large chain supermarket mainly engaged in fresh food. Creating private brands and green marketing are the strengths of Auchan Supermarket. In the next 5-10 years, green food will increase 10 times, with an annual growth rate of about 20%.

3. Emphasize employee training and share results with employees

Auchan attaches great importance to the construction of the workforce and strives to improve the overall quality of its employees. Through various training methods, it educates employees to be honest and selfless, treat each other equally, establish a mutually beneficial and honest relationship with customers, and regard customers as partners of the company. Employees are required to serve enthusiastically and politely under any circumstances, and win the trust of consumers with excellent service. Auchan has always believed that "the development of an enterprise is inseparable from the efforts of every employee in the enterprise." In a Sino-foreign joint venture such as Auchan, it is very important to continuously expand the Chinese workforce and improve their work skills. Therefore, in the company's business management, it implements decentralization, strengthens employee training, attaches importance to promoting Chinese employees to leadership positions, and establishes a performance award distribution system. It truly achieves knowledge sharing, power sharing, and property sharing. At present, many Chinese employees have been promoted to store managers, taking a key step in the process of Auchan's localization.

In the management system of Auchan Group, all employees are required to study and implement relevant laws and regulations and conduct business activities in accordance with the law. The contracts signed by the company comply with relevant laws and regulations, and ensure that the subject is qualified, the content is legal, the terms are complete, the responsibilities are clear, and the procedures are complete. There is also a regulatory agency for contract execution, and a relatively complete contract management system has been formed.

As a family-owned enterprise with strong values, sharing achievements with employees is an important tradition of Auchan. Auchan uses this to stimulate the autonomy and creativity of each employee and create opportunities for each employee to grow and fully develop their potential. Therefore, Auchan staff also have a special sense of responsibility and achievement.

4. Be enthusiastic about public welfare activities and contribute to re-employment projects

In the few years since entering China, Auchan has worked hard to share the government's worries and responsibilities. On average, each Auchan branch can recruit about 500 employees from the society. To a certain extent, it supports the government's re-employment project. In the past few years, Auchan has provided 1,000 jobs for Yangpu District and contributed to the social stability of Yangpu District. In 2002, the Zhongyuan store alone solved the employment of 161 unemployed people, 55 assisted insurance personnel, and 8 disabled people. During the Spring Festival in 2003, the manager of the Zhongyuan store led a team to visit the welfare home and donated more than 23,000 yuan worth of physical objects (including wheelchairs, nutritional products, etc.), which was highly praised by the welfare home. In addition, Auchan also actively participated in donation activities such as fighting SARS.

While striving to run the supermarket well, Auchan fully supports and cooperates with the government's related work and actively participates in various social activities. Through participating in a series of selection activities at the district and city levels, Auchan won the title of the Sixth Shanghai Price Measurement Trustworthy Unit, the 1999-2000 Contract-abiding and Credit-keeping Unit and the Yangpu District Civilized Unit. It has improved the company's reputation and enhanced its vitality for future development. It is believed that with the expansion of Auchan in Shanghai and the provinces of East China, it will provide more employment opportunities for the society and make greater contributions to the society.

5. Adhere to the three major concepts and provide customers with Auchan quality life

Auchan's market positioning is: all items (food and non-food) can be purchased in the same mall, consumers can choose freely, transportation is convenient, shopping guides and assistance are provided for technical products, payment is made in one time, auxiliary services are provided (including home delivery and after-sales service, etc.), and there are also commercial corridors and other service items in the commercial center.

Its characteristics are: First, low price. Auchan's first mission is to satisfy customers, sell goods at the lowest price, and achieve the highest turnover per unit of business area. The design of the mall ensures that a large number of goods can be circulated quickly, and a strict management system is implemented. Management is carried out according to turnover, expenses, inventory and operation conditions; second, quality and selection. Not only in terms of price, but also in terms of the variety of goods that meet customer needs, we provide the best choice. Among domestic brands, regional brands, and Auchan brands, we select and develop new products; third, service. Customers who come to Auchan to shop can not only enjoy reasonable prices and a variety of choices, but also many conveniences for customers.