---
title: "RT-Mart: The Rise of China's Supermarket King"
description: "Who is the king of Chinese supermarkets? Most people would immediately think of Walmart or Carrefour, while those who prefer domestic brands might say China Resources Vanguard or Yonghui. However, according to data from 2011 and 2012, RT-Mart, a Taiwanese supermarket chain, has been the sales champion for two consecutive years, outperforming even global retail giants like Walmart and Carrefour. Despite its relatively low brand awareness in first- and second-tier cities, RT-Mart has achieved remarkable sales growth through its unique strategies, making it the undisputed leader in China's supermarket industry."
author: "《中国糖果》"
publisher: "New Distribution"
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published: "2015-08-20"
language: "en"
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# RT-Mart: The Rise of China's Supermarket King

> Who is the king of Chinese supermarkets? Most people would immediately think of Walmart or Carrefour, while those who prefer domestic brands might say China Resources Vanguard or Yonghui. However, according to data from 2011 and 2012, RT-Mart, a Taiwanese supermarket chain, has been the sales champion for two consecutive years, outperforming even global retail giants like Walmart and Carrefour. Despite its relatively low brand awareness in first- and second-tier cities, RT-Mart has achieved remarkable sales growth through its unique strategies, making it the undisputed leader in China's supermarket industry.

Who is the king of Chinese supermarkets? Most people would immediately think of Walmart or Carrefour. Those who dislike foreign brands might loudly shout out China Resources Vanguard or Yonghui.
No. All wrong. According to data from 2011 and 2012, a Taiwanese supermarket chain named RT-Mart has been the sales champion for two consecutive years, even defeating global retail giants like Walmart and Carrefour. How did this supermarket, with relatively low brand awareness in first- and second-tier cities, achieve such explosive sales growth and become the king of Chinese supermarket chains?
According to public data, RT-Mart was founded in Taiwan in 1996 by Yin Yanliang, and in 1997, it expanded northward to open its first store in Shanghai. By the end of 2012, the latest data showed 219 stores, with an average expansion of 20 new stores per year over 16 years. In 2013, it accelerated its expansion, opening four new stores in January alone, and the latest store in Suizhou, Hubei, was set to open in May.
In addition to its rapid store expansion, its sales have also seen a huge leap in the past two to three years. According to relevant data, RT-Mart's sales exceeded 60 billion yuan in both 2010 and 2011, and its average annual sales growth has never fallen below 15% since 2000. Among its 213 stores that have opened, there has never been a single store closure, which is nothing short of a miracle in China's supermarket industry. What secrets lie behind this magical growth and rapid expansion?
**Standardization of Services: Ultimate, Unified, and Continuously Improved**
To support the large-scale expansion of a service enterprise, the best approach is to thoroughly standardize all service processes. The best example to learn from is undoubtedly McDonald's and KFC. However, few truly achieve this because the essence of industrial society is large-scale socialized production and collaboration. Since the division of labor requires a long and smooth process, breaking down and refining processes and standardizing them is a reflection of Taylor's scientific management thought from the industrial era. McDonald's and KFC truly inherited this industrial-era management philosophy and applied it to the refined management of the service industry. In contrast, Chinese enterprises have transitioned directly from a traditional agricultural society to the current industrial society, without experiencing the long industrial society that Europe did, making it difficult for local Chinese commercial enterprises to grasp the essence. RT-Mart, however, originated from an industrial manufacturing enterprise, giving it a unique advantage in understanding enterprise standardization.
RT-Mart's standardization is reflected in the following aspects:
**First, standardization of service processes.** No matter when you enter RT-Mart, the service process you experience is basically consistent: from "parking," "guidance," "entering the store" to "shopping," "consultation," "exiting the store," and then taking RT-Mart's own shuttle bus home. The overall service process rarely changes significantly.
**Second, standardization of management training.** RT-Mart has a fixed training model for hierarchical management and training, with strict and standardized training. Whether you are a new part-time worker during winter vacation, the training on values and service concepts is consistent and unchanged. The prescribed training process and time do not change due to personal reasons.
**Third, standardization of operational management processes.** No matter which RT-Mart store you visit, the communication with supplier systems or the entire receiving, warehousing, and outbound processes are highly standardized and do not change significantly due to changes in store managers.
**Fourth, standardization of procurement.** In backend product procurement, there may be adjustments based on regional marketing characteristics, but for basic products, the same procurement principles and processes are followed. Most basic product procurement remains consistent.
**Fifth, the ultimate 5S management method.** 5S is the essence of Japanese enterprises. The so-called 5S refers to Seiri (Sort), Seiton (Set in order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain). Its core is somewhat similar to the Deming Cycle, still rooted in the lean management philosophy of the industrial era. All daily work processes involve repeatedly breaking down these processes and then repeatedly practicing them. It is said that a good service is generally divided into 37 steps, and RT-Mart clearly continuously breaks down processes and then repeatedly practices and improves them.
**The Secret of Low Prices: "Sponsorship," Buyouts, and Damage Prevention**
It is difficult for Chinese retail enterprises to avoid price wars, so low prices are always the best strategy to attract consumers to supermarkets. How does RT-Mart achieve ultra-low prices? There are three core strategies:
**Low-price factor one: "Sponsorship" and direct supply to terminals.** RT-Mart's low-price strategy is supported by its global procurement network established through cooperation with Auchan, as well as its "sponsorship" futures trading strategy. It directly finds producers of meat, rice, and fruits, using futures locking to control prices at the production end in advance. For example, RT-Mart's procurement department will buy an entire mountain to get the lowest price for pears, or buy an entire pig farm to get quality pork at a good price. Although this futures-like purchasing method requires significant capital, RT-Mart is willing to invest heavily, ultimately gaining consumer trust and support, which in turn validates the correctness of this procurement model.
**Low-price factor two: Skillful use of the "cannon fodder" strategy.** In marketing, there is a famous cannon fodder strategy. This strategy refers to a product portfolio where, if it includes two products, one is the main attack direction to attract customers, while the other serves as a flanking product that is the true source of profit, and the two have high complementarity and synergy. Supermarkets are the best battlefield for this combination strategy. Supermarkets have a wide variety of goods, making them suitable for different product combinations. RT-Mart has clearly discerned this secret and used it to the extreme. Through its precise ERP information system, it accurately calculates all products, deeply understands the characteristics of its customer base, provides essential daily necessities at no profit, and earns high premiums on other products. This product combination strategy plays a significant role in attracting customers.
**Low-price factor three: Buyout system and dynamic price adjustments to ensure "low" prices throughout.** For products with high demand, RT-Mart directly approaches manufacturers for large-scale, full-payment buyouts, rather than using the dealer-in-factory system like other supermarkets. This model ensures that products are absolutely lower than market peers, and they are sold at no profit or minimal profit. RT-Mart is one of the few companies with full-time market price monitors who constantly watch competitor prices and immediately adjust prices if competitors lower theirs, ensuring the low-price strategic advantage.
**Low-price factor four: A comprehensive loss prevention system keeps the loss rate far below the industry average.** RT-Mart has a dedicated loss prevention department and implements a principle where loss rates are linked to individual performance, keeping daily losses in various departments at a low level. Additionally, it has established dedicated loss prevention areas with specialized monitoring. These two strategies ensure a low loss rate, further reducing costs and supporting the low-price strategy.
**Gentle Supplier Strategy: Quick Payment, Less Exploitation, and Professionalism**
This is actually the core advantage that allows RT-Mart's entire operating system to function. Retail ultimately comes down to a competition between supply chain and operational support systems. RT-Mart is one of the few companies in the industry with good relationships with suppliers. **To maintain good relationships with suppliers, just follow the "three less, one more" principle: less exploitation, fewer promotional fees, less card-taking, and quick settlement.** RT-Mart's excellent customer flow and sales ensure a good capital turnover rate, guaranteeing that suppliers receive timely and effective payments.
Another reason lies in RT-Mart's internal operating system, which has established a procurement system similar to a buyer system. Each category has a dedicated and professional procurement team, many of whom are industry experts. Their deep understanding of the industry helps build very good relationships with suppliers.
**Powerful and Effective Layout System: Wolf Pack, Breakthrough, and Going to Rural Areas**
RT-Mart has adopted two major strategies in its overall corporate strategy:
**First strategy: Wolf pack strategy, consolidate one point, and quickly break through.** RT-Mart's layout differs from other companies' scattered approach. According to its latest store data, it initially concentrated heavily in East China, continuously strengthening its advantage in that region, making it absolutely dominant in China's wealthiest area. Competitors scattered across the country find it difficult to compete with RT-Mart in this region. Once a region is consolidated, it expands outward, continuously seeking opportunities in surrounding areas.
**Second strategy:** This is also the most worthy success strategy of RT-Mart: **While giants are investing heavily in the fiercely competitive first-tier cities like Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, and Wuhan, RT-Mart is making great strides in the vast third- and fourth-tier markets, and even fifth-tier markets,** continuously deepening its channel penetration. This move has proven completely correct. As first-tier cities face growth stagnation, third- and fourth-tier cities will become the main battlefield for China's future retail, and with deepening urbanization, this strategy will continue to expand RT-Mart's advantage in the Chinese market.
**Successful Marketing Strategy: Local Methods, Door-to-Door, and Free Shuttles**
**Site selection strategy:** RT-Mart generally locates in non-core commercial areas, often in sub-central or even non-central areas, mainly residential areas, and requires a very large space. More importantly, every RT-Mart must have a parking lot, which many Chinese supermarkets currently cannot provide.
**Internal layout strategy:** It does not simply build a standalone store; around the store, there must be complementary commercial formats, including dining, clothing, and entertainment that match the supermarket's customer base, creating a good synergy among various business formats.
**Promotion strategy:** The internal product display is very reasonable, and the most praised aspect is the store music, which creates a warm and happy atmosphere that suits customer habits.
**Advertising and media promotion is very reasonable:** Advertising only does two things. First, before opening, it heavily promotes on local television media, which is still the most effective medium for third- and fourth-tier city populations. Second, it prints a large number of paper shopping coupons and distributes them door-to-door. These two local methods are still effective in these small cities.
**Bus route promotion is crucial:** Since the user base is mostly middle-aged and elderly, convenient transportation is very important. Third- and fourth-tier city users, especially supermarket users, are still interested in free shuttle buses. RT-Mart operates its own free shopping buses in each city, which are basically equivalent to local city bus routes. These buses, covered with RT-Mart logos, have become the most effective mobile advertising.
**Culture is the Soul of Rise: Genes, Localization, and Adaptability**
Everything ultimately comes down to genes and philosophy. RT-Mart comes from Taiwan, and Taiwanese enterprises have an unsurpassable advantage in service refinement, inheriting traditions, and understanding Chinese users. As a Sino-foreign joint venture, the partner Auchan provided supply chain and procurement, while RT-Mart retained its local operating team. The combination of the two has sparked a powerful synergy in its operating and management system. Moreover, a willingness to learn and adapt quickly is deeply ingrained in RT-Mart's DNA. From its initial warehouse format to hypermarkets, from a unified national structure to a regional system, and from centralization to decentralization, it demonstrates a strong gene for "change."
**Future Threats and Challenges: Catch-up, E-commerce, and Hard Work**
Although RT-Mart has many operational, management, and cultural advantages that other supermarket companies cannot surpass, it still faces severe challenges:
First, local enterprises represented by Yonghui are learning faster and faster, and giants like Walmart are increasingly understanding the Chinese market and will fight back, posing significant challenges for RT-Mart in the future.
Second, how to deal with the endless food safety incidents and customer disputes, as well as adapt to public relations crises in the era of social media.
Third, how to take effective measures in the face of the overall sustained downturn in China's retail market.
Fourth, as a labor-intensive enterprise, how to address the pain point of large-scale human resource loss in the service industry, where there is limited upward mobility, tiring and boring work, and with more and more post-90s workers, how should RT-Mart respond?
Finally, under the tide of e-commerce, consumer habits are undergoing profound changes. How should RT-Mart face the market erosion caused by the rapid growth of Taobao, 1号店, and Amazon?
Only time can provide answers to all these questions.
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