In Bentonville, Arkansas City, has opened its first Wal-Mart discount stores, Wal-Mart has expanded its business to the world more than 10 countries, more than 4,600 stores, employs more than 130 million people. In 2001, Wal-Mart to 217.7 billion U.S. dollars in sales topped magazine “Fortune” Global 500 of the first. In 2002, Wal-Mart’s sales and then Pan Xingao, reaching 245 billion U.S. dollars, to become a truly global retail giant. Wal-Mart’s success, I have to sum up as “one, two, three” secret.

  ?? The so-called “one”, that is: a slogan, “Always low prices, always”

? This slogan on Wal-Mart stores in the light box, pop-store leaflet, even in its small-ticket shopping, everywhere. Wal-Mart’s “everyday low prices” is no empty slogan, not a cheap deal overstock goods or short overnight cheap promotions and more different from some shopping malls, specialty stores to attract tourists and lower with each other malicious price-dumping or side of price increases, they use a discount to deceive consumers, but a real “consistent” and act to benefit the customer. To this end, on the one hand Wal-Mart’s business people, “demanding to selection of suppliers, bargaining tenaciously” to the lowest possible price purchase goods from the factory, on the other hand, their high degree of conservation management, and everywhere carefully, lower costs and various expenses.

? Wal-Mart in the training of procurement staff, specifically told them to bargain with suppliers attitude “to be tough, because this is work”, “This is not for the company, but for customers to secure the best price,” “never have to feel sorry for suppliers.” “We do not rebate and does not require suppliers to provide advertising services, as long as they give the minimum reserve price.” Achieve procurement cost of localization is one of effective measures. In China, Wal-Mart stores 95% of the products are “Made in China”, so that both cost savings and tailored to local customer habits. In addition, the company also actively sourcing channels to reduce intermediate links (agents) to strive for greater profit margins. 80 years, Wal-Mart has taken a policy to require manufacturers to exclude from the transaction of sales agents, direct orders to the manufacturer, while the purchase price reduction of 2% -6%, if the manufacturer does not agree, Wal-Mart on suspension of its business. When Wal-Mart’s sales volume more than 1 billion U.S. dollars, and the average annual growth of 30% or more, “This strategy is quite effective.”

? The other hand, they are everywhere carefully, reduce costs and various expenses. New store opening, they do not aim decoration, do not do advertising. Management, streamlining. “End of the 60s, Sam, 12 Wal-Mart stores, 15 Franklin stores, the Corporation only he and another director and three staff members, together with the branch manager.” “And Sam is only five branches in the set of rules when the company office expenses accounted for only 2% of turnover, including the head office and regional managers salaries, office expenses, as well as distribution centers and large computer systems input. ” To reduce operating costs, they have imposed “anti-loss war.” In order to maintain low prices, Wal-Mart will be losses to a minimum. Their main way to reduce costs through the establishment of modern logistics distribution center to achieve high-tech, computerized management, to logistics, business flow, information flow through the distribution center to achieve unity, substantial increase in efficiency achieved. In 1969, with corporate headquarters in Bentonville completed, the first distribution center built at the same time into the computer age. Currently, Wal-Mart has 30 distribution centers nationwide, serving more than 3,000 of its stores, 85% of the supply of goods of these distribution centers.

? Wal-Mart to “everyday low prices” sales concept introduced by up shop in Europe, Asia, Latin America, consumers around the world have been widely accepted. “Always low prices” philosophy is for retail sales of the overwhelming majority of consumers, that middle-income and low income groups, therefore, it is universal, has become a chain of basic business principles. Only chains have the scale of operations, significantly reduce administration costs, adhere to the principle of marginal profit, to win the overwhelming majority of consumers, access to sustainable development.

? The so-called “two”, namely: the two technologies

? Quick, science, advanced information processing technology and highly developed logistics and distribution technology is the rapid development and expansion of Wal-Mart and the retail giant in one fell swoop into the two core technologies.

? “On the high-tech sense of smell than other competitors, Wal-Mart to be sensitive.” For example, information processing technology, the first Wal-Mart to track inventory using a computer (1969), the first use of bar codes and electronic scanners management products (1981), the first satellite for the retail trade (1983), the first use of EDI? Electronic Data Interchange System (1985) and more than 1,800 suppliers to implement EDI, the first use of wireless scanning rob (1988 ), early use of EAS (ElectronitArticeSurreillance) electronic anti-theft system. (Install EAS, so that Wal-Mart merchandise theft rate by 50%.)

? Investments in information technology reinforce Wal-Mart’s core values. Today, Wal-Mart Wal-Mart’s rivals have to admire the view. As economic analyst Robert Derek pointed out that “Wal-Mart’s use of technology as a means of promoting business development community has set a successful example.” Make use of a traditional high-tech enterprises have been amazing. It not only control the purchasing and shipping manager at any time, reduce costs, make your own every one U.S. dollar as fast as breeding habitat, and it brings the traditional concept of a new retail management changes. ???? In high technology based on the lowest cost Wal-Mart can achieve “everyday low prices” purposes. At the same time the relationship with suppliers more closely: Wal-Mart suppliers can enter the set of electronic data interchange system, understand their own product sales, which were planned for production, greatly reduced production because of the blind leading product backlog losses.

? In the high-tech command, the widely acclaimed Wal-Mart’s distribution system, outsiders can be achieved. Only by establishing a dedicated computer management systems, satellite positioning systems and television scheduling system, to meet the United States, more than 3,000 chain distribution needs.

? “Wal-Mart distribution center is smooth logistics empire Pentium core.” In most distribution centers, more than 80,000 kinds of commodities. Have