Prensent Situation of Development of Commercial Service Industry of UK and Enlightenments to Shandong Province

LIU Yanyan[a],*

[a] School of Finance, Shandong Polytechnic University, Jinan, Shandong, China.

*Corresponding author.

Supported by the Shandong social science planning project general project “Comparison of the Development of Commercial Services between Shandong Province and Selected Developed Countries” (11BSYJ01-5).

Received 16 August 2012; accepted 5 October 2012


Commercial services refer to service industies including the circulation of commodities and relative services for people’s daily life and provide service products, which cover wholesale, retail, food, accommodation, as well as various kinds of services closely related with people`s life, and is an important part of modern service industry and plays an important role in the development of an economy. This paper analyzes the development and the position in the service industry of commercial services of UK in recent years in recent years, and talks about the commercial services including the wholesale and retail, accommodation and food, information and communication in UK, so that try to offer reference for the development of China’s or Shandong’s commercial services as materials.

Key words: UK commercial service industry; Wholesale and retail; Accommodation and catering; Information and communication

LIU Yanyan (2012). Prensent Situation of Development of Commercial Service Industry of UK and Enlightenments to Shandong Province. Canadian Social Science, 8(5), 45-49. Available from: http://www.cscanada.net/index.php/css/article/view/j.css.1923669720120805.ZT1067
DOI: http://dx.doi.org/10.3968/j.css.1923669720120805.ZT1067.

In 1970’s, western counries had realized with service as the leading economic form and gradually formed the core competitiveness of the country such as Europe and the United States, and there are variety of commercial services forms, and its pulling effect of on the economy and employment is increasing. While development of commercial service industry in Shandong Province starts later, so it is necessary to analyze development of commercial service industry in the overseas developed country, find out the successful experience.

By the driving force of information and communications and other high-tech, service industry has become the driving force and source of economic growth of England. Since entering twenty-first Century, ratio of the three industries is always the third industry > second > the first industry. In 2000 the structure of the three industries is approximately 71:28:1, and in 2005 is about 73:26:1, in 2007 is about 76:23:1, and the third industry has always been the pillar industry of the national economy. Among them, the development of British commercial services such as wholesale and retail industry is relatively mature, and logistics service industry, information service industry and the social service industry is at a stage of rapid development. Rapid development of commercial service industry of England has a lot of reference for this emerging economy such as China and Shandong province.

1. Development of commercial service industry of UK

The wholesale and retail trade in commercial service industry has larger proportion in the commercial industry of England, and its development is relatively mature, while logistics service industry, information services and social services is in a stage of developing, and their operating income is in a trend of increasing. The proportion of labor cost to total output from high to low is social services, accommodation and catering industry, information service industry, logistics service industry and the wholesale and retail trades (table 1).

Table 1

Statistics of British Commercial Service Industry from 2008 to 2009

Type of commercial services


Total output

Total value according to base period prices

Total expending to goods, raw materials and services

Total labor cost

(million pounds)

(million pounds)

(million pounds)

(million pounds)

Wholesale and retail (automobile and motorcycle)











wholesale (except automobile and motorcycle)











retail (except automobile and motorcycle)

































information service











Social service except accommodation











logistics service











Source: National Statistics of UK

In retail industry, contribution of annual sales of mainly food stores and fuel transactions for motor vehicle to the whole retail industry is higher, and growth rate of motor fuel trading sales is relatively higher.

Table 2

Statistics of the British Retail Industry unit:%

Type of retail industry

Proportion to retail industry

annual increasing rate of sales volume

contribution rate of annual sales volume to retail industry

increasing rate of annual sales value

contribution rate of annual sales value to retail industry

All retailing




Predominantly food stores






Predominantly non-food stores (total)






Non-specialised stores






Textile, clothing and footwear stores






Household goods stores






Other stores






Non-store retailing






Automotive fuel






Data sources: National Statistics of UK

2. the Positive role of British government in the development of the commercial service industry

Services industry plays more and more important role for the UK economy and employment expanding. After the international conference entitled” implementation the potential ability of services economy: promoting growth, innovation and competition” held by OECD (Organization for economic cooperation and development), the British government pays more and more attention to the development of domestic service industry, and strive to make the service industry for further improvement in the quality level and overall levels. At the same time, in order to make the service industry more quickly and more healthy development, the government make deep study on policy issues, and strive to seek and overcome barriers to service industry in the following respects:

First, the British government gave height attention to the vigorous development of the service economy taking the knowledge economy as a significant feature, and has issued a series of guiding document in macroscopical policy.

Second, in the tax revenue, the British government has introduced new policy, to give tax concessions to small and medium-sized enterprise investment with high technology, which is to change the tax revenue of up to 40%, reduced to 22% for three years investment, reduced to 10% for five years investment.

Third, on education, the British government emphasized more adult professional and technical training. The government train unemployed workers in structural adjustment process each year, and made them access to information and communication services industry and other business services.

Fourth, with the rapid development of service economy based on knowledge economy, the economically interdependent degree among countries is deepened ceaselessly, especially between EU countries. To support this development tendency, the British government established the” entrepreneurial scholarship”, encourage graduate students with one’s ability and cleverness of especially high technology field to develop their business and create new england. At the same time, the British government has launched the “ Global Partnership Program”, on one hand to help domestic enterprises and the successful international enterprises to establish partnership; on the other hand, attract foreign enterprises to the UK, and forming a union and research network with the UK regional enterprises, promote balanced development of the regional economy.

3. Use foreign advanced experience for reference and proposal to promote the development of commercial service industry of Shandong Province

Vigorously development of the service industry has become an important growth points of national economic development. The proportion of commercial service industry in the service industry is in a rising trend, and its contribution to economy is bigger and bigger. Adopting various measures to accelerate the development of commercial service industry has become the consensus of the world. In the context of the international financial crisis, to accelerate the development of commercial service industry of Shandong province has important strategic meaning. Compared with England through the the development of commercial service industry, we can found many shortcomings of commercial services in the Shandong province, and put forward the following suggestions.

3.1 To Encourage Private Institutions into Commercial Service Industry, Through Enhancing Competition In Shandong Province to Promote the Rapid Development of Commercial Service Industry

Most commercial service enterprises of Shandong Province exist the following shortcomings such as format aging, management backward, and its competition ability is not strong. The main improvement measures are: First is to further accelerate enterprise reform progress of state-owned commercial service industry. To strick with the development direction of industry privatization, shares and diversification, make state-owned economy exits emulative domain, develop new economic point of growth. Second is actively to build a complete commercial service industry system, to create a significant position of leisure tourism in Shandong. At the same time, make full use of advantage of perfect commodity logistics system in city, the mobilization of city large commercial giants, to explore the rural market in-depth, broaden the field of commercial services.

3.2 To Improve Labor Productivity, Increase the Average Output of Workers in Commercial Service Sector

In the open economic environment, Shandong province uses foreign capital, to participate in international technical exchange, not only introducing new technology and key equipment, but also by entry of foreign technical personnel, accelerate the spread of new technologies, encourage enterprises to adopt new technology, improves the integral level of the technology of commercial service industry. To promote employment, improve labor productivity and economic development are closely related, at the same time, also is the primary task in economic and social life of Shandong Province. At present Shandong Province employment exists outstanding contradiction, namely the contradiction of labor supply and demand, the structural contradiction of employment is more outstanding, the contradiction of the whole quality of labour force and development of commercial service industry and technological progress does not suit each other.

3.3 Strengthen Innovation, Promote Development of Modern Commercial Service Industry

Shandong province should insist on the co-development of traditional service industry and burgeoning service industry, productive service industry and living service industry, and of all-round development of key categories of modern service industry. Push forward the building of service industry function zone, continuously promote the rapid development of the modern commercial service industry, promoting the continuous improvement of management system of modern commercial service industry.

3.3.1 Strengthen the Development of Modern Logistics

Firstly pay attention to the building of mordern trade city. Carry out a series of development planning and supportive policies and measures for modern logistics. Take the development of the third party logistics as a breakthrough point, Pay equal attention to the construction of regional modern logistics center and upgrading the wholesale market, promoted Shandong province to change from the traditional big commerce province to big modern logistics province. Planning and construction of integrated logistics park and logistics base which the service function is perfect, radiation and driving ability is obvious. Second is to cultivate the outstanding bibcock enterprise and information platform. Set up a group of logistics enterprises with strong competitive power. Make construction of similar information center and logistics information platform like Lunan, TianYuan and TietongAolong, increase investment in the construction of large-scale integrated electronic commerce platform. Third is paying attention to logistics personnel training. Take a variety of ways to help the enterprise to cultivate the introduction of much-needed high-level logistics management professionals and, guide enterprises to actively participate in the high-level logistics personnel training, occupation qualification certification and on-the-job training, cultivating a group of high level of logistics talents and logistics industry occupation personnel with international vision, understand business and with good management ability.

3.3.2 Encourage the Development of Information Service and Software Industry

Development of information service industry in Shandong province lags behind many foreign countries, so we should introduce and cultivate the development of information service industry as model, to encourage exploration and innovation of various business models and service industry forms and development of information service industry of characteristics, and introduce a number of incentive measures.

Firstly, set up a special fund to support the development of information service industry

Information service industry is the important part of strategic emerging industry, but also new economic growth points to accelerate the transformation of economic development mode. In recent years, the telecommunication, software and system integration services, information technology services, Internet and value-added business services of information service industry in our province had made great progress. To encourage information service industry make bigger and stronger development, each year special funds should be used from special guidance fund arrangements to foster strategic emerging industries, support the development of information service industry.

Secondly, to encourage the introduction of information service enterprise.

Set up special incentives for those firms which registered in Shandong, investmented in a certain amount of information service industry in accordance with its investment, and is a proportion of its total amount of investment. Cultivate demonstration enterprises, and execute gradient to reward to firms which sales revenue growth rate is higher than the average growth rate of information service industry, and revenue growth rate is higher than the average growth rate of the average information service enterprise. Carry out awards qualification, if the software companies and software products pass, they were given a one-time award. pass the computer information system integration qualification level 3, level 2, level 1 of the enterprises, they will be given a one-time award; pass the development capability maturity model (CMMI) certification level 3, level 4, level 5 of the enterprises, to reward; pass human resource capability maturity model (PCMM) certification, certification of information security management (ISO27001/BS7799), IT service management (ISO20000) certification, the service provider environment safety (SAS70) certification and other relevant international certification of software enterprises, granting a certain proportion of reward to the certification costs. Give the senior management personnel and technical personnel working in the information service industry reward in order to ensure them live in Shandong.

3.3.3 Put Forward the Innovation and Development of Community Services, Better Meet the Needs of Residents Living

Shandong province should strive to innovate the development way of community service industry, increase breed and aid to strength, expand service content, rich services ways and carriers, improve service quality and service level, improve the satisfaction degree of community residents. In support aspect, increase support capital to community services projects, key support to community service center, volunteer service, service for the old and other public welfare projects and services, domestic service and other operating items. In the promotion of community information services, focus on strengthening the building of service platform, opened the building community portal, the establishment of a unified community management and service information system. To improve the quality of service, the introduction of similar “clean corridor, beautification home”, community workers “walk a thousand visit 10 thousand to send cool”, “community service day” activities, improve the quality of community service, improve residents’ degree of satisfaction.

3.4 Change the Traditional Idea, Enhance the Attention on Commercial Services Industry

Change traditional ideas that heavy stage of producing industry and light the stage of service industry, adhere to the combination of promoting traditional service industry and the development of modern service industry, focus on the development of modern logistics, business services and so on which has the comparative advantage, establish the standard shopping mall which has a setting of goods wholesale and retail, logistics, catering, transportation. To effectively change the employment concept, establish a new concept of career, have a correct view of commercial services, strengthen the employment education, enhance the confidence to be a good waiter. Staff of commercial service industry should not only master the business skills, but also raise the awareness of service occupation.

3.5 Adhere to the Service Concept of “People-Oriented”, Improving the Quality of Commercial Services

The service concept of “people-oriented” is customer-oriented, and regard quality of service as the core, provide customers with more detailed, more humane and thoughtful service, look on the customer as the real” god”. It includes a process of the experience of the service level and the overall quality of service from customer arrived until leave. The “people-oriented” service concept is to to provide “recessive “ product and service personnel as a media, it is a core concept of commercial service industry. The “people-oriented” business philosophy emphasizes the service of attention, patience, careful, hard for customer, to carefully observe the customer behavior, to be patient to listen to customer requirements, heartedly provide customers with intimate quality service, make customers have a feeling of feel at home; at the same time, pay attention to emotion exchange with the customer in the service process, and truly embody the “ people-oriented” service concept.

First, pay attention to quality.

As people consumption ability and life quality rise gradually, the demand for the quality of commercial service industry is also increasing, tend to pay attention to the refinement. If business service industry want to truly implement the “people-oriented” business philosophy, it should improve service quality to meet the needs of customers, become competitive in the industry must understand customers, know the service level in your customer’s mind. At the same time, to understand their service quality, so that the commercial service industry quality standards continue to improve and improve, to meet customer’s demand.

Second, pay attention to service.

Service determines the success of management. In the business services, courtesy, politeness is an indispensable part, it infiltration in any aspects of service, throughout the process from beginning to end, either a manager or employee, first of all must be “etiquette ambassador”, pay attention to the courtesy hospitality rules in services provided, to treat the customer on the “guests” position, “people-oriented”, with absolute sincerity as base, humility as a fundamental.

Third, pay attention to value.

“People-oriented”, customer oriented, let the customer to spend and get some valuable things, reveal the identity of the customer, status, taste, this is the direction that all of the commercial service industry must work and struggle for, but also starting point of all the customer purchasing service. Paying more attention to the sense of value, satisfying the customer of quality, price, service design and higher requirements.


KANG, Hua (2001). Prensent Situations and Trend of Development of Service Industry of UK. Technology and Economic Perspective, 12.

National Statistics of UK. Retrieved from http://statistics.gov.uk

YU, Xuan (2011). Experience and Its Enlightenment of the Development of Service Industry and Service Trade of UK to China. HLJ Foreign Economic Relations & Trade, 2.


  • There are currently no refbacks.

Copyright (c)


  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

2. Submission

Online Submissionhttp://cscanada.org/index.php/css/submission/wizard

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.
  • We only use four mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: caooc@hotmail.com; office@cscanada.net; ccc@cscanada.net; ccc@cscanada.org

 Articles published in Canadian Social Science are licensed under Creative Commons Attribution 4.0 (CC-BY).


Canadian Social Science Editorial Office

Address: 1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net; Http://www.cscanada.org 
E-mail:caooc@hotmail.com; office@cscanada.net

Copyright © Canadian Academy of Oriental and Occidental Culture