Traditional Retail Enterprises Face O2O'S Dilemma

The traditional retailing companies are not able to compete with the online retailing in terms of the richness of the category, but they will not be able to synchronize with the online retailing. They will inevitably lose a large number of users, and some of the physical shops will even become the fitting rooms for online retailing.

Chen Jingjing, an analyst with China Internet Network Information Center, believes that O2O has made the network retail and traditional retail go from opposite directions to integration. However, traditional retail enterprises are facing difficulties in the pformation and upgrading of O2O, which are mainly manifested in the following three aspects:

First, the risk of O2O pformation in traditional retail enterprises is large, lacking enough motivation and courage.

Traditional retail is indeed affected by online retailing, but at present it is only a slowdown in revenue growth and a decline in profits.

In the process of O2O pformation, it is likely to burn money in large quantities, and the capital market will take a cautious attitude towards the pformation of O2O in traditional retail enterprises. It is difficult for traditional retail enterprises to endure long time profits and even losses.

However, once the trend of online retailing is obvious, the subsequent substitution effect will be overwhelming.

This is what traditional retail enterprises call "pformation death, not pformation".

Second, traditional retail enterprises lack Internet genes, and O2O user experience and operational efficiency are far from retail.

Traditional retail enterprises have low level of informatization, management, suppliers, inventories, etc.

The expansion of such systems is relatively weak, and it is difficult to support the integration of online and offline channel systems. Informatization needs to invest a lot of manpower and capital to support enterprises.

Alibaba

The purpose is to make use of the technological power of Internet enterprises.

However, at present, the software and resources of Internet companies are not customized for traditional retail enterprises. Some Internet concepts and software integration applications are not satisfactory.

Third, users' consumption habits are reshaped by the Internet, and traditional business users are losing a lot.

From Taobao's "C2C era" to Jingdong, Tmall's "B2C era", and then to Tmall international, Hai Tao Forum's "cross-border electricity supplier" rise, consumer's pursuit of goods from "low price" to "genuine low price" and then to "brand low price".

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Over the years, advanced customization has been strongly praised by local fashion brands, and whether its market and mode have changed.

However, although the "cake" of advanced customization looks tempting, but after several groping, the market has different voices.

Some enterprises involved in advanced customization business admit that the "cake" of advanced customization is beautiful, but it is not easy to cut.

"In the past year, we have tried to make advanced customization.

However, because of the high starting point and high price, many consumers often forget the price, and even if consumers are embarrassed to make the first set of clothes, it is difficult to form long-term cooperation.

Mr. Lin, director of a designer's brand, has no choice but to speak.

White collar Mr. Chen told reporters that because of work reasons, almost every day they have entertainment.

Originally wanted to customize a set of clothes for his own image, but after consulting, I found that a good price for custom made clothing was over 10000 yuan, which was a little expensive, and gave up the idea.

"The main reason for choosing high is to fit."

Mr. Li, a young entrepreneur in Jinjiang who has considerable economic strength, told reporters that he had made a tie on the Internet for a custom necktie shop, but the quality was not good enough.

"The consumption concept of advanced customization is relatively popular in foreign countries. I personally pay more attention to the reputation and quality of brands.

Due to the fact that the domestic advanced customization clothing features are not outstanding, and compared with the international brand, there is a certain gap between the services provided by the enterprises, so that a number of high-end consumers with this demand are lost overseas.

As a matter of fact, whether consumers are "looking for a price" or the quality and service provided by some enterprises can not meet the needs of consumers, many enterprises have admitted that the promotion of advanced customization business is not smooth.

Mr. Lin, an industry insider who has been in the apparel industry for 20 years, says that most of the advanced custom services launched by local clothing brands are aimed at celebrities and consumers are narrower.

Compared with scale production, advanced customization is still a niche market.

In addition, clothing advanced customization is not a profiteering industry, and even many peers are losing money.

Because clothing customization is targeted at high-end consumers, even if a company has a fixed high-end customer group, if the average person is not big enough, and the demand for advanced custom clothes is time-consuming, so the cost is very high.

Mr. Lin believes that the development of advanced customization service is a new marketing mode, which has the characteristics of zero inventory, low risk and zero waste.

But compared to the prevailing monopoly system, the development of advanced customization service is only a supplement, and can not become a mainstream marketing mode.