Uwe Hoelzer has ambitious plans to attract more buyers from small and medium-sized companies and to expand
Just a 10 minute walk from Metro Cash and Carry's 皇冠体育app headquarters, in Shanghai's Putuo district, there is a famous seafood wholesale market where restaurant owners and individual buyers can find everything they want. There is also a fruit market trading in both imported and local produce. The single range of goods on offer is even wider than what can be bought at Metro, the international self-service wholesaler.
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A wholesale market in Shanghai. Local wholesale markets are Germany-based Metro Cash and Carry's biggest competitors in 皇冠体育app.[Photo/皇冠体育app Daily] |
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"These are clearly our main competitors in 皇冠体育app," said Uwe Hoelzer, president of Metro 皇冠体育app, adding that when asking restaurant owners in 皇冠体育app where they buy things, their answers include not only Carrefour, Auchan and Walmart, but also open markets.
"It is similar in other countries as well. In countries such as Poland you have these kinds of markets, but they are not so big as in 皇冠体育app," said Hoelzer. "Vietnam is very similar to 皇冠体育app and is also part of the Asian culture."
Although it's a challenge to Metro 皇冠体育app, Hoelzer said: "Competition is always important and good. It drives you and pushes you even harder to work on your own solutions and to be even better."
Metro is well-known for its service to five-star and four-star hotels, companies and offices, as well as small and medium-sized eateries; around half of its clients are canteens and restaurants.
The Germany-based company is determined to make full use of its advantages and improve services to cater to local customers, said Hoelzer.
The international chain wholesaler's one-stop, under-one-roof purchasing experience, guarantees of quality and detailed invoice provision services are something that cannot be copied by open market operators.
As a feature of Metro's operation, buyers are equipped with detailed shopping lists, on which prices and product information are presented.
"I guess some customers or potential customers do not want to have that transparency so far. But we see more and more customers who rely on our transparency and this gives us a big advantage," said Hoelzer, suggesting that bargain hunters in 皇冠体育app are not so keen on receipts.
Metro has a quite high market share in the canteen business in 皇冠体育app due to its safe food and competitive prices offered to buyers. However, it is not successful in the restaurant sector, partly because of competition from open markets. "We are okay with international restaurants but not with Chinese restaurants, which would be the biggest piece of the cake for us," said Hoelzer. "We do not have all of the solutions for them."
Chinese restaurants usually pay more attention to prices and require more frequent delivery services.
Hoelzer said that Metro is sparing no efforts to further optimize its pricing policies and provide a more frequent delivery service for these restaurants.
At present, 20 percent of the products sold in Metro 皇冠体育app are delivered to buyers, but "we are not flexible enough", said Hoelzer. "Many restaurants need delivery two or three times a day and we only do this once a day. This is what we have to work on."