Carrefour experienced new heads of middle-aged crisis or started from the apparel industry

Editor's note: The CEO of French fashion group Vivarte and 62-year-old Prasat will succeed Luo Shengzhong and become the chairman and CEO of Carrefour. This is Carrefour's third coaching change in four years. Why has Carrefour, which has been established for 52 years, changed frequently in recent years? Can cross-border newcomers take on the responsibility of lifting the whole Carrefour?

In order to save the sluggish performance, Carrefour, the world's second-largest retail giant, announced that it will replace the head. The CEO of French fashion group Vivarte, 62-year-old Prasat, will succeed Luo Shengzhong and become the chairman and CEO of Carrefour. This is Carrefour's third coaching change in four years. Why has Carrefour, which has been established for 52 years, changed frequently in recent years? Can cross-border newcomers take on the responsibility of lifting the whole Carrefour?

Carrefour’s head of media in China revealed that according to an email from the headquarters, the new CEO Plasart will take office in April of this year (2012) and formally appoint in June. His strategy is difficult to predict, but it is certain that China will not be affected.

Carrefour: As always, the Chinese market maintains the pace and pace of its previous development. There are 20-25 stores opening each year. This will not be affected. The Chinese market will still maintain this trend.

Although Carrefour, which already has nearly 10,000 chain stores in 32 countries and regions, is still the second largest in the world, it seems that the scenery has long since ceased. In 2011, due to sales stagnation, they issued profit warnings five times and the stock price fell by more than 40%.

Wang Xianqing, director of the Institute of Circulation Economics at the Guangdong Business School, believes that Carrefour's global business is bottlenecked and has a certain relationship with the current international economic environment.

Wang Xianqing: It did not realize the seriousness of the economic crisis and its impact on the world economy and the retail industry. Carrefour's strategy lacks timely adjustments. As a retail industry developed in the 1950s and 1960s, Carrefour has now entered the middle and old age. Many of its past models have not adapted to the new situation.

In China, for example, manufacturers want to enter the Carrefour store to pay a certain "channel fee", which includes new sponsorship fees, contract sponsorship, display fees and so on. Zhao Hui, the chief consultant of Zhaofu department store, revealed that suppliers can only raise prices for profit, which is inconsistent with Carrefour's low-cost strategy. Liu Hui believes that the decline in Carrefour's performance is mainly from 2007, when the LV Group's Arnault family became the new owners of the Carrefour Group.

Liu Hui: After the personnel changes in the core leadership, the business philosophy of the company has been lost. They lack the development strategy of a large group and they have been looking for these years.

In fact, it is normal for the global retail giants to rotate CEOs every 3 to 5 years. However, from Carrefour's turn-based coaching change, it is not difficult to see that several CEOs including Luo Shengzhong failed to put forward effective strategies and started with luxury goods. The Arnold family lacks patience. This selection had been in charge of Plasset of the clothing group, and Liu Hui believed that the Arnault family wanted to improve profit growth.

Liu Hui: The best way is to mention the sales of clothing to a new strategic height. In the past, such a successful case, the United States Target, which is very good in apparel sales, through this advantage, Target is not very backward in the competition with Wal-Mart. Carrefour hopes to make some moves in this area, so it has picked a CEO who is sensitive to the apparel market.

In the past two years, Carrefour has withdrawn from the Japanese and South Korean markets one after another. In China, not only has it encountered resistance from local supermarket stores, but it has also frequently been caught in scandals such as fraud. Crazy expansion alone has made it difficult to regain lost market share. What tricks have been used to make the old giant who has entered the age of destiny achieve magnificent turns? Is Carrefour's new cross-border industry leader in the apparel market well-known?

Driver Glove

Pig Leather Glove,Weight Lifting Glove,Driver Glove

Work Glove Leather Work Gloves Co., Ltd. , http://www.nsglove.com