In FY 2018, the business of the AEON China Business Unit in Hong Kong was turned into a profit, and the loss of the mainland business remained.
Editor’s note: This article is from WeChat public account “Commercial property headline” ( ID: Dtoutiao), author Chen Anqi.
Write / Chen Anqi (Industry Analyst)
Edit / Fu Qingrong
WeChat typesetting / Ashley
Economics, demographics, consumption patterns and perceptions have changed. After several economic cycles, Japan is experiencing the fourth era of consumption.
At present, companies born and growing in China can almost find a benchmark in Japan. Studying the United States is about discovering possibilities, and studying Japan is turning possibilities into reality.
To this end, commercial real estate headlines launched the Japanese business in-depth report series. Today is the third “Japan retail first” AEON.
AEON, in China, used the name “Jizhidao”. The full name of the Japanese fan, coupled with shelves of a wide range of goods, it once fascinated Chinese consumers. But this fascination, but gradually faded by time.
The history of AEON can be traced back to 250 years ago. At that time, the “Okada House” was sold in the form of a hawker. In 1969, the predecessor of AEON, “JUSCO Co., Ltd.” was born. In 1984, it began to expand overseas and laid out Malaysia, Thailand and Hong Kong.
In 1987, it opened its first store in China in Hong Kong. More than 30 years have passed, Japan is still the AEON base camp, the number of stores accounted for more than 80%; China, as one of the three major headquarters, is the highlight of the AEON Overseas Business Department, opened a supermarket, also started a general department store , shopping centers, convenience store business.
But it is a common background for its Chinese transcripts. In May of this year, the chairman of the board of directors of AEON China, Yu Shengyou, resigned as the managing director of AEON (Hong Kong) on the occasion of four years in office. The “Chinese-style” operational dilemma that AEON encountered was once again put on the table.
Aeon in China, more profitable troubles
The last centuryIn the 1990s, the Japanese bubble economy collapsed, GDP once declined, and the retail industry was almost stagnant.
Japanese retailers have turned their surplus capital into the Chinese market, which has strong domestic demand and great potential. At this time, most Japanese retail companies entered the Chinese circulation industry through joint ventures with mainland enterprises, such as Yaohan, Isetan and Ito Yokado, and AEON is no exception.
In 1995, Hong Kong AEON and Guangdong Tianmao Department Store Co., Ltd. established Guangdong Jusco. In the second year, AEON’s first GMS (integrated department store) in China, Jusco, was selected for the high-profile opening of Tianhe City, the first shopping mall in China.
“The taxi said to go to Tianhe City, the driver did not know the road and did not respond, said to go to Jusco, and immediately drive.” Tianhecheng Group Project Management Department Huo Yingmin previously described to the media that the Tianhe City East Gate at that time A motorcycle that is full of Jusco’s customers.
Jusco, a hit. The integrated department store became the sign of AEON’s rapid expansion in China, but it went to the south and used a different name. In the south, the island of Jusco went to the north and changed its name to “Jusco”. With the same armor, two names, this style of play left an obstacle for the large-scale expansion of AEON.
With the phasing out of restrictions on foreign investment in equity and geography, and further approval, in 2002, Hong Kong AEON, which has been listed in Hong Kong, invested in Shenzhen to establish its first wholly-owned retail enterprise in China. Shenzhen AEON. Five years later, Beijing Yongwang was born.
Source: AEON official website; Cartography: Commercial real estate headlines
At this time, AEON has worked hard in China for more than ten years of comprehensive department store mode, and its vitality is weakening. In 2008, AEON’s first shopping mall, AEON MALL Beijing International Shopping Mall, opened in Beijing, changing the department store business map.
Aeon will dismantle the store model and subdivide the general department store, shopping center, SM (food supermarket), convenience store and other formats. In the period of China’s new economic normal, we will pay close attention to product sales and quality service. .
In 2011, AEON integrated its China business and established the “AEON China Headquarters”. In 2012, it unified the names of its two major department stores into “AEON”.
Developed to this day, six years have passed, AEON has laid out 56 GMS formats in China, 21 in SM industry, 75 convenience stores, shopping centers