Logistics Operations in Western European and Hong Kong Grocery

Topics: Supermarket, Retailing, Grocery store Pages: 7 (2209 words) Published: October 12, 2011
1. Executive Summary
Nowadays, consumers demand higher quality, variety of services for less cost, time and complexity in the Grocery Retail Market. Even through in different country, in different shopping behaviour and environment. Retailers across the world have recognized to be taken to re-evaluate their strategic direction by supply chain management application in grocery retail industry, to enhance the industry competitive and gain the absolute advantage as a whole. In the following paragraphs, discussion will be on the grocery retail market between Western European and Hong Kong, focusing on the customer behaviour and influences in the grocery retail store formats. This is an attempt to see how logistics operations to fulfill in structure and control in the grocery market, thereby, to enhance the efficient and effective operations and inventory availability. Finally, the recommendation of entry into the Hong Kong grocery retail market.

2. The differences between Western European and Hong Kong consumer behaviour in the grocery retail market In the following will focusing on the differences between Western European and Hong Kong Consumer behaviour in the grocery retail market

2.1 Value of Money
Consumers are considering: how much money can be saved when choosing a grocery store; In Western European, consumers are inclined to be bargain hunters and demand good value for their money spending. In addition, consumer are inclined to buy promotional or discount items when they already like and trust a brand. Consumers are believed that price reductions through store or loyalty cards are good value. In Hong Kong, retailers foresee the attitude of consumer, usually they will provide some price promotion, for example: “buy two get one free”, “Holiday or Weekend big sale”, big discount for bulk buying etc. Also, retailers will source some quality household products for consumer to exchange by certain unit of stamps; those stamps can be getting it when they go shopping in certain amount.

2.2 Better selection of high quality branding and service
In Western European, the position of the retail brand varies according to a cultural context based on various social and cultural factors shape the retail structure and strategies. Consumer expects retailers to stock a wide selection of high quality brands. Some of retailers have been concerned with genuinely listening to consumers’ needs and desires. Also, consumers have had to adapt to any changes being made in the retail structure, that they have changed their shopping behaviour to coincide with the products that retail stores are providing.

In Hong Kong, the consumers are concerns over health and food hygiene in the store and shopping area as SARS dealt a severe blow to the economy in 2003. Retailers are perceived as having higher standards of hygiene and quality control. Moreover, the retailers are promised that to source fresh meal and food everyday and high transparency of product of origin. Also, they can provide free delivery service when buying in certain amount and promise next day delivery.

2.3 Closest location and maturity facilities
In Western European, consumers have to travel longer distances, use a car for shopping, buy larger purchases, and be able to store the product in their homes. When selecting a supermarket is considering if the store is easy parking. The functions of grocery stores may be connected with the useful or necessary goals that the consumer expects to accomplish when conducting grocery shopping. Store size in terms of floor space, product range, and distance to the store measured by the mode of transport used and the actual journey time, are arguably the most important functional features of grocery store. In Hong Kong, supermarket and convenience stores can find in everywhere, especially in residential district. Also, the long operating hour can providing to the consumers can enjoy shopping in everyday, anytime. In recent year, some...
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