"Chinese supermarket industry business model and investment strategic planning analysis report Prospects" [2] shows that since 2002, the total number of stores of the supermarket sector, the total area, number of employees, total sales, total profits are all showing a steady upward trend . In recent years, the supermarket industry sales margin of 2.35%, the average sales margin of 2.6%. Chinese Top 100 chain enterprises from the point of view, the degree of concentration in the retail industry is improving, the supermarket industry also showed the same trend. The proportion of total sales agency and supermarket chains occupy the top 10 retail hundred in 2009 to reach 2.7% and 52.8%, respectively. Supermarket Top 10 the number of stores to its total number of stores hundred supermarket chain in 2009, the proportion reached 34.1%.

   Prospects network analysis, constituting closely with GDP per capita retail formats. GDP per capita is between US $ 1000-3000, supermarket chains and hypermarkets has become popular and strong expansion in terms of their nature to become the first main format. Our per capita GDP2003年超过了 $ 1,000 in 2008, more than $ 3,000, is in the supermarket chains and hypermarkets stage of rapid development, and the standard supermarket already in recession.
It is predicted that by 2018 China respectively, can accommodate 4801 supermarket stores, supermarkets and stores area were 48.01 million square meters.

 
  The Case of Shanghai, Shanghai area complete variety of retail formats, the fierce competition between domestic and foreign retail giants, Shanghai local supermarket though a larger number of enterprises but the scale is generally small. All along, Hualian, Lianhua Supermarket brands in the SMB market firmly occupy the Shanghai market. Large international supermarket brands invasion strategy to make adjustments, which on the one hand to consolidate the smaller markets, on the other hand to intensify its Century Lianhua, Hualian GMS and other large stores distribution. But specific to the store and the overall visibility of their goods, in terms of promotions and shopping environment, and Taiwan-funded or foreign stores more mature. Market Carrefour, Tesco, Lotus and other brand has gained.

   Supermarket industry is to play a scale advantages of industry, the anchor size advantage that extensive logistics network spread. Scale advantages through good logistics management capabilities into the procurement cost advantage and quality control advantages, and quality control advantage plus the cost advantage is easy to form a good reputation and brand image advantage. In order to cope with competitive pressure of foreign giants, the Shanghai municipal government is actively promoting the merger of Lianhua Supermarket and Hualian Supermarket two giants.

   Shanghai local supermarket trends: (1) scale; (2) fine; (3) its own brand.

  Scale aspects, supermarkets tend to establish a logistics network to support the store network, a second-tier regional network encryption mature at the same time, the shop turned to channel sink strategy, occupying the surrounding cities and even rural markets, acquisitions, corporate restructuring will be the rapid scale supermarkets of the shortcut. Fine, the focus lies in business conditions and model innovation, and enhance network supermarket building the logistics supply chain management efficiency. Increase the proportion of private-label goods, supply chain management to enhance the efficiency of the ultimate goal.