The late "Shop King" Deng Chengbo, and his fourth son, Deng Yaobang (Jason), through Liangdao Co., Ltd., has recently "shrunk" in the "Minsheng Department" supermarket. The number of supermarkets under the group has been reduced from 26 to 18 during the peak period. A current employee admitted frankly Worried about the company's prospects.
Under the epidemic, many citizens have become accustomed to fighting the epidemic at home, and the demand for daily necessities and food has increased. The supermarket retail business should have increased profits, but the "people's livelihood" has decided to reduce its operations.
Zhuang Tailiang, executive director of the Liu Zuode Institute of Global Economics and Finance at Chinese University, believes that Minsheng’s reduction in the number of branches is estimated to be related to the change in the family business’s business strategy.
He said that operating a supermarket not only requires financial resources, but also important for coordination with suppliers and market positioning. "Supermarkets don’t make money, mainly because of influence. You don’t have representativeness and positioning, so it’s hard to get a firm foothold. ."
Mr. Zhuang Tailiang said that he believed that Minsheng decided to reduce the number of branches, which involved changes in business strategy or business restructuring.
Zhuang said that operating a supermarket has always had low profits. It requires not only financial resources, but also experience, familiarity with the goods, and positioning in order to gain market influence.
The "shop king" Deng Chengbo's family has always had a unique vision. Buying wealth through investment properties is not a retail business.
A notice was posted at the Minsheng Branch of Haiyatt Garden Shopping Mall in Hang Hau, and it will close at 6 pm tomorrow (14th, Sunday).
(Data Picture/Photo by Kong Fanxu)
Zhuang added that the operation of supermarkets must have a clear positioning. For example, most of the PARKnSHOP supermarkets are located in housing estates of the same family and the Changhe department, which brings a series of convenience to residents. Wellcome mainly sells its own brands and must be representative. Only by "sucking the head" can we gain a firm foothold in the market.
"It’s not easy to make a profit to be a supermarket. Maybe it’s Brother Cheng (Li Ka-shing, the founder of the Changhe Department). The HKTV Mall has been declining for many years and started to make money. Back then, 759 sold snacks to get the market, and you won’t be fair. Enough is not a high-end supermarket. It is difficult to be a supermarket without a good positioning." Zhuang said that some distributors and suppliers have signed agreements with supermarkets and are not allowed to supply products to other competitors of the same type. In addition, it is not easy to break into the supermarket market.
"Shop King" Deng Chengbo's family recently sold properties in series. The fourth son, Deng Yaobang, through Liang Dao Co., Ltd., has recently "shrunk" in the "Minsheng Department" supermarket. Among the three branches in Tseung Kwan O, two quietly bid farewell, starting tomorrow (14th) Only in the branch of Suntech TKO Spot mall.
Zhuang Tailiang, executive director of the Liu Zuode Institute of Global Economics and Finance at CUHK, believes that it has something to do with the change in the family business's business strategy.
(Information Picture/Photographed by Lu Yiming)
Front-line employees of the supermarket chain pointed out that the number of supermarkets under the group has been reduced from 26 to 18 during the peak period. Among them, as many as half of the employees of Minsheng Supermarket are planning to leave.
"Hong Kong 01" has inquired with "Minsheng Supermarket" and is waiting for a reply.
A spokesperson for the Shengyu Group, which is owned by Deng Chengbo's fifth son, Deng Yaosheng, said that Deng Chengbo's family business is diversified and the group does not comment on the strategic adjustments of individual businesses.
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