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Ceng Xuehai: Layout Of China'S Retail Industry Based On Offline O2O
< p > ThoughtWorks, as an internationally known IT service provider, has served in GAP and other customers. It entered China many years ago, before mainly serving other industries such as finance and insurance. However, as the retail business in China became hot, ThoughtWorks began to exert its strength in the retail industry, and launched the O2O solution based on the Chinese market. Currently, leading logistics companies in China and some real estate enterprises have already tried. < /p >
< p > < strong > this is an exclusive interview: < /strong > < /p >.
< p > < strong > O2O below the line < /strong > < /p >.
P: < strong > reporter: the solution of ThoughtWorks is to drain through the online way, enhance the efficiency of the entity store, or open up more online business? < /strong > /p >
< p > Ceng Xuehai: our idea of O2O is to take offline as the basis. The goal is to bring incremental to offline stores instead of taking away the original customers. < /p >
< p > a department store example, it has done many years of offline stores, and has accumulated many advantages: first, the number of shops is relatively large; second, store display and shop staff training are doing well, customers come in after the user experience is also good; third, customers are very trusting to offline stores. But when it began to make Tmall stores, these three advantages were not reflected, forced into the price war, discounted, and concessions were made, but the advantages under the line were lost. For such enterprises, we suggest that the Internet is a channel for them, that is, a tool. The aim is to attract more people to the physical stores to see the advantages of their offline businesses through the application of Internet technology, and to make this advantage even greater. This is our way of thinking for these enterprises. < /p >
< p > now when we communicate with many retailers, they gradually realize the importance of being offline. Offline is their fundamental lifeline, and it is hard to abandon them. If they do not have a good team online, they lack experience and no traffic entry. The volume of traffic is now almost split up, and the cost of traffic is extremely high. There is no advantage but a price war. Such a move may make a lot of revenue online, but there is no obvious increase in profits, or even a loss. So they slowly think about it. < /p >
< p > < strong > the difference between domestic and foreign < a href= "http:// www.91se91.com/news/index_c.asp" > O2O < /a > domestic enterprises should do well in data collection < /strong > /p >
< p > < strong > reporter: what do you think of the differences or differences in the application of O2O at home and abroad? < /strong > /p >
< p > Ceng Xuehai: in fact, foreign O2O practices and ideas are not ahead of China. The power to do O2O in China is very strong. On the one hand, the impact of the electricity supplier on the "a href=" http:// "www.91se91.com/news/index_c.asp" below the line /a below is too large. On the other hand, the competition of domestic retail itself is too intense. Now, though we feel that large shopping centers and urban complexes are the future of business, the density is very high. The problem they face is how to make differentiation. Now, consumer preferences gradually become digital, mobile, and self-service, more convenient, and then remote. Such a strong demand for O2O is not so obvious in foreign countries, because people living abroad are more colorful than in China. They may not have such a large demand on shopping and shopping, but they are different in China. < /p >
P: < strong > reporter: now many enterprises have managed membership and accumulated some data, but domestic enterprises are weak in data analysis and application. What are your suggestions in this regard? < /strong > /p >
< p > Ceng Xuehai: now domestic enterprises are very weak in data collection and analysis, but this thing has not yet become the shortest board for O2O, because the whole business process has not yet been combed smoothly. For example, data acquisition is not clear enough even for people to buy anything in the shop. For example, a coupon has been issued on the Internet. Does the person spend money or not, and now the traditional retail business has not done well. So, the analysis and mining of this data are the next step. Now we are saying that we should first help retailers to run their business processes, accumulate data, and make good use of infrastructure before we can talk about the next step. < /p >
< p > < strong > talk about commodities and < a href= "http:// www.91se91.com/news/index_c.asp" > pricing > /a > depreciate standardized commodities < /strong > /p >
Reporter: now, many physical stores do O2O, there are several core issues, one is the choice of goods, whether the goods sold online are more abundant goods or superior commodities, the second is pricing, the price of online and offline, and the third is distribution. What are your suggestions for these aspects? < /strong > /p > P, strong.
< p > Ceng Xuehai: the choice of commodities is determined by the historical development of retail enterprises. We do not touch on this content. With regard to pricing, commodities are now standardized. It is very easy to compare prices, how much money online, and how much money they are under the line. This part of the commodity should be gradually reduced in price, because the impact of electric business must be done at the moment, but some goods are not very easy to compare, such as special goods, or special properties are not easy to compare prices. Therefore, when pricing, we can consider the reduction of standardized commodities as a way to attract people, and turn them from income items into means of income, attract people, and then do related sales, and sell those products that are not easily priced and have relatively high gross margins. < /p >
< p > third problems. Distribution is a sensitive issue. Different formats have different choices. If consumers are not directly to the store, they will not be able to achieve related sales. There are two choices. First, the future stores will shrink only to do business and services, no longer stockpiling goods, and no longer do such a big cost. Second, the purpose of distribution is not to keep customers away. For example, a seller who sells milk powder is also delivered to the home, but stores open the same way. The reason is that the shop assistants are well trained. In fact, the door-to-door delivery shows that the relationship between customers and stores has not been cut off. Businesses not only send things to customers, but also send trial packages, customers can try them in stores, including inviting customers to participate in activities, taking babies to do parent-child activities in stores, and making friends with customers, so that customers still retain the motivation and interest of entering stores. If businesses fail to do this, delivery is equivalent to cutting off the flow of stores under their own lines. In this matter, enterprises must think clearly and strategically do this thing, and there is no unified answer. < /p >
< p > < strong > on the decision making thinking of the entity retailers needs a strong push < /strong > < /p >
P > strong > reporter: for traditional retailers, what kind of impression do you have in the process of business, especially on the attitude towards the Internet and technology? < /strong > < /p >
< p > Ceng Xuehai: actually, China's retail business has been doing since the beginning of reform and opening up. The older generation of entrepreneurs is now in the next generation's shift. The leadership of these enterprises is also gradually becoming younger, and their acceptance of the Internet and technology is actually quite high. Therefore, when we talk with them, we often feel that they are more urgent about this matter, hoping to make use of the Internet. But the biggest problem is that they have the resources and budget, but they do not know what to do. In the past, we talked to them about how to do marketing, but their current question is whether to make Tmall shop or what Tmall store to do. This problem has not yet been solved, let alone how to give Tmall Tmall a flow of links. Their problem now is that the assets under the line are so large that they can not be thrown away. What should they do in this situation? They have a very good understanding of the Internet and mobile Internet. < /p >
Reporter: we have been exposed to many department stores or state-owned enterprises in the past six months, and many of their leaders are very unfamiliar with the Internet. They are fighting professional managers. Professional managers may be here this year. They will not be here in a few years. Who will spend that big investment and take such a big risk and basically put their KPI in the first place. How do you think about this problem? < /strong > /p > P strong.
< p > Ceng Xuehai: the spanformation of the department store industry needs a strong person to push forward. How can it be strong enough? The interests are big enough and the motivation is big enough. Therefore, professional managers, you have to rely on him to promote a strategic change, this is more difficult, he may just do something that can be seen in three years. If a company wants to make a strategic change, it is really necessary for the decision-makers to act on it and push it forward. < /p >
< p > < strong > this is an exclusive interview: < /strong > < /p >.
< p > < strong > O2O below the line < /strong > < /p >.
P: < strong > reporter: the solution of ThoughtWorks is to drain through the online way, enhance the efficiency of the entity store, or open up more online business? < /strong > /p >
< p > Ceng Xuehai: our idea of O2O is to take offline as the basis. The goal is to bring incremental to offline stores instead of taking away the original customers. < /p >
< p > a department store example, it has done many years of offline stores, and has accumulated many advantages: first, the number of shops is relatively large; second, store display and shop staff training are doing well, customers come in after the user experience is also good; third, customers are very trusting to offline stores. But when it began to make Tmall stores, these three advantages were not reflected, forced into the price war, discounted, and concessions were made, but the advantages under the line were lost. For such enterprises, we suggest that the Internet is a channel for them, that is, a tool. The aim is to attract more people to the physical stores to see the advantages of their offline businesses through the application of Internet technology, and to make this advantage even greater. This is our way of thinking for these enterprises. < /p >
< p > now when we communicate with many retailers, they gradually realize the importance of being offline. Offline is their fundamental lifeline, and it is hard to abandon them. If they do not have a good team online, they lack experience and no traffic entry. The volume of traffic is now almost split up, and the cost of traffic is extremely high. There is no advantage but a price war. Such a move may make a lot of revenue online, but there is no obvious increase in profits, or even a loss. So they slowly think about it. < /p >
< p > < strong > the difference between domestic and foreign < a href= "http:// www.91se91.com/news/index_c.asp" > O2O < /a > domestic enterprises should do well in data collection < /strong > /p >
< p > < strong > reporter: what do you think of the differences or differences in the application of O2O at home and abroad? < /strong > /p >
< p > Ceng Xuehai: in fact, foreign O2O practices and ideas are not ahead of China. The power to do O2O in China is very strong. On the one hand, the impact of the electricity supplier on the "a href=" http:// "www.91se91.com/news/index_c.asp" below the line /a below is too large. On the other hand, the competition of domestic retail itself is too intense. Now, though we feel that large shopping centers and urban complexes are the future of business, the density is very high. The problem they face is how to make differentiation. Now, consumer preferences gradually become digital, mobile, and self-service, more convenient, and then remote. Such a strong demand for O2O is not so obvious in foreign countries, because people living abroad are more colorful than in China. They may not have such a large demand on shopping and shopping, but they are different in China. < /p >
P: < strong > reporter: now many enterprises have managed membership and accumulated some data, but domestic enterprises are weak in data analysis and application. What are your suggestions in this regard? < /strong > /p >
< p > Ceng Xuehai: now domestic enterprises are very weak in data collection and analysis, but this thing has not yet become the shortest board for O2O, because the whole business process has not yet been combed smoothly. For example, data acquisition is not clear enough even for people to buy anything in the shop. For example, a coupon has been issued on the Internet. Does the person spend money or not, and now the traditional retail business has not done well. So, the analysis and mining of this data are the next step. Now we are saying that we should first help retailers to run their business processes, accumulate data, and make good use of infrastructure before we can talk about the next step. < /p >
< p > < strong > talk about commodities and < a href= "http:// www.91se91.com/news/index_c.asp" > pricing > /a > depreciate standardized commodities < /strong > /p >
Reporter: now, many physical stores do O2O, there are several core issues, one is the choice of goods, whether the goods sold online are more abundant goods or superior commodities, the second is pricing, the price of online and offline, and the third is distribution. What are your suggestions for these aspects? < /strong > /p > P, strong.
< p > Ceng Xuehai: the choice of commodities is determined by the historical development of retail enterprises. We do not touch on this content. With regard to pricing, commodities are now standardized. It is very easy to compare prices, how much money online, and how much money they are under the line. This part of the commodity should be gradually reduced in price, because the impact of electric business must be done at the moment, but some goods are not very easy to compare, such as special goods, or special properties are not easy to compare prices. Therefore, when pricing, we can consider the reduction of standardized commodities as a way to attract people, and turn them from income items into means of income, attract people, and then do related sales, and sell those products that are not easily priced and have relatively high gross margins. < /p >
< p > third problems. Distribution is a sensitive issue. Different formats have different choices. If consumers are not directly to the store, they will not be able to achieve related sales. There are two choices. First, the future stores will shrink only to do business and services, no longer stockpiling goods, and no longer do such a big cost. Second, the purpose of distribution is not to keep customers away. For example, a seller who sells milk powder is also delivered to the home, but stores open the same way. The reason is that the shop assistants are well trained. In fact, the door-to-door delivery shows that the relationship between customers and stores has not been cut off. Businesses not only send things to customers, but also send trial packages, customers can try them in stores, including inviting customers to participate in activities, taking babies to do parent-child activities in stores, and making friends with customers, so that customers still retain the motivation and interest of entering stores. If businesses fail to do this, delivery is equivalent to cutting off the flow of stores under their own lines. In this matter, enterprises must think clearly and strategically do this thing, and there is no unified answer. < /p >
< p > < strong > on the decision making thinking of the entity retailers needs a strong push < /strong > < /p >
P > strong > reporter: for traditional retailers, what kind of impression do you have in the process of business, especially on the attitude towards the Internet and technology? < /strong > < /p >
< p > Ceng Xuehai: actually, China's retail business has been doing since the beginning of reform and opening up. The older generation of entrepreneurs is now in the next generation's shift. The leadership of these enterprises is also gradually becoming younger, and their acceptance of the Internet and technology is actually quite high. Therefore, when we talk with them, we often feel that they are more urgent about this matter, hoping to make use of the Internet. But the biggest problem is that they have the resources and budget, but they do not know what to do. In the past, we talked to them about how to do marketing, but their current question is whether to make Tmall shop or what Tmall store to do. This problem has not yet been solved, let alone how to give Tmall Tmall a flow of links. Their problem now is that the assets under the line are so large that they can not be thrown away. What should they do in this situation? They have a very good understanding of the Internet and mobile Internet. < /p >
Reporter: we have been exposed to many department stores or state-owned enterprises in the past six months, and many of their leaders are very unfamiliar with the Internet. They are fighting professional managers. Professional managers may be here this year. They will not be here in a few years. Who will spend that big investment and take such a big risk and basically put their KPI in the first place. How do you think about this problem? < /strong > /p > P strong.
< p > Ceng Xuehai: the spanformation of the department store industry needs a strong person to push forward. How can it be strong enough? The interests are big enough and the motivation is big enough. Therefore, professional managers, you have to rely on him to promote a strategic change, this is more difficult, he may just do something that can be seen in three years. If a company wants to make a strategic change, it is really necessary for the decision-makers to act on it and push it forward. < /p >
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