Core Viewpoint - The article discusses the rise of "hard discount" supermarkets in China, highlighting their competitive pricing strategies and operational efficiencies that differentiate them from traditional retail models [6][17][48]. Group 1: Hard Discount Concept - Hard discount stores, such as JD Discount Supermarket and Happy Monkey, are characterized by their low prices and stable supply of quality products, unlike "soft discount" stores that primarily sell excess inventory [8][16][18]. - The term "hard discount" refers to the ability to significantly reduce costs across production, marketing, distribution, and retail, leading to lower consumer prices [21][32]. Group 2: Cost Reduction Strategies - Hard discount supermarkets achieve cost reductions by minimizing brand marketing expenses, often opting for private label products or lesser-known brands to avoid high brand premiums [24][25]. - By purchasing directly from manufacturers, these stores can bypass multiple layers of distributors, reducing distribution costs significantly [29]. - The operational model of hard discount stores is designed to minimize overhead costs, often featuring simple store layouts and minimalistic displays to save on expenses [30][31]. Group 3: SKU Management - Hard discount retailers utilize a low SKU (Stock Keeping Unit) strategy, focusing on a limited number of high-turnover products to negotiate better prices with suppliers [38][41]. - This approach allows for a concentrated purchasing strategy, enhancing the ability to secure lower prices while still offering a wide variety of product categories [41][42]. Group 4: Market Adaptation - The hard discount model is particularly suited to the Chinese market, where consumers exhibit high price sensitivity, similar to the German market where this model originated [44][46]. - Internet giants are well-positioned to leverage their data analytics capabilities to optimize product selection and pricing strategies in hard discount formats [53][55]. Group 5: Consumer Expectations - Despite low prices, hard discount stores must maintain product quality to meet consumer expectations, ensuring that even inexpensive items perform adequately [58][59].

Core Viewpoint - The retail industry in China is undergoing structural adjustments, with significant changes reflected in the 2024 Top 100 supermarket rankings, highlighting the rise of new retail formats and the performance of traditional players [3][10]. Group 1: Industry Overview - The 2024 Top 100 supermarkets in China achieved a total sales scale of approximately 900 billion yuan, with a year-on-year growth of 0.3%, while the total number of stores decreased by 9.8% to 25,200 [4]. - Online sales accounted for 16.9% of total sales for the Top 100 supermarkets, indicating a growing reliance on e-commerce [5]. - Membership and discount stores continue to show significant growth, with Walmart (China) maintaining its top position with sales of 158.8 billion yuan [4][9]. Group 2: Company Performance - Hema (盒马) ranked third in the 2024 list with sales of 75 billion yuan, marking its highest ranking since its debut in 2019, surpassing Yonghui, which ranked fourth with 73.2 billion yuan [8][12]. - Sam's Club has seen continuous sales growth, with 2023 sales reaching 84.3 billion yuan, and projections for 2024 suggest it may exceed 100 billion yuan [13]. - Aldi (奥乐齐) experienced a remarkable 100% sales growth, moving from 10 million yuan in 2023 to 20 million yuan in 2024, reflecting its strong market presence [16][18]. Group 3: Market Trends - The rise of new retail formats, such as community discount stores, is reshaping the competitive landscape, with Hema's community discount store format gaining traction [14]. - The market is characterized by diverse consumer preferences, with different retail formats catering to varying consumer segments, from budget-conscious shoppers to middle-class consumers [18][19]. - Regional retail leaders are also performing well, with companies like Biyoute and Xinyilou showing strong sales growth, indicating localized innovation in the retail sector [15][19].