The Pformation And Upgrading Of The Physical Retail Industry Needs "Soldier To Divide Four Roads" Before We Can Stand Firm.

The rapid development of China's electricity supplier can be said to exceed the speed of development of any country in the world. One of the main reasons is that China's traditional retail industry is lagging behind. The main reason for the backward development of the retail industry lies in the high cost and the ultimate consumer price.

In a world manufacturing power like ours, the price of retail terminals is high, and Chinese people buy foreign products from China.

To alleviate these contradictions, there is an urgent need for pformation and upgrading of the retail industry.

Why can electricity providers impact on physical stores? In the United States, Japan and other countries, the electricity supplier can not "end explosion" entity store.

The development dilemma of traditional retail industry can be basically summed up as pressure from cost. With the new technologies such as Internet and big data, the electricity supplier has gained the cost advantage and price advantage.

Logistics providers and manufacturers can directly face consumers at lower commodity prices.

In contrast, the traditional retail industry has no advantage in cost and price, nor can it take any other advantages.

Competition.

The following are specific aspects: first, the ability to apply new technologies in the network is relatively weak.

Two, the rise of various costs has become a major contradiction in the development of retail industry.

The cost of rent, labor, electricity, card and so on accounted for more than 70% of the total cost.

Rents continue to rise, most of the retail industry is leased property management, in recent years, real estate prices continue to rise, retail rents are also rising.

The aging of the population is serious and the rate of employee turnover is high. Even in the southwest border cities such as Dongxing, Guangxi, supermarkets are unable to recruit people, and they want to use Vietnamese workers.

Therefore, the traditional retail industry to increase the wages of employees to cope with recruitment difficulties.

The price of water and electricity varies from industry to commerce, and this problem remains unresolved. It is also a major predicament facing the retail industry.

Three, the operation mode of joint point deduction is unsustainable.

The business mode of joint point deduction accounted for about 95%.

Department stores and supermarkets have become the two landlords. "Building sites to collect rents", in the face of all kinds of pressures such as external rents and so on, the retail industry has shifted the pressure through the increase of the rate of deduction and the entry fee. This kind of pressure has finally been pmitted to the terminal consumer price and improved the commodity price.

In addition, due to the low proportion of self operation, it is difficult to bring into full play the advantages of chain operation and unified distribution, and fail to achieve economies of scale, which also makes the cost remain high.

The brand and channel control of joint ventures is weak, and there is no commodity pricing power, which also restricts the development of O2O.

Four, policy support is cold.

Government departments frequently support various policies to support the development of e-commerce, while the support policy of physical retailing is less.

Many traditional retail businesses also have the idea of testing the water business platform, but they still linger. One important reason is that the electronic business platform is completely different from the entity store business mode. The development of the electronic business platform requires technology and capital cost, which is a great challenge to the traditional zero sale industry.

The pformation and upgrading of the physical retail industry need to be based on two main points and four main directions.

The two is to reduce costs and create new advantages.

The four main directions are integration of online and offline, horizontal integration, vertical integration and self promotion.

First, explore the O2O business model, develop "Internet +", and reconstruct the business value chain.

Physical stores connect with online channels to create contacts that facilitate consumption.

The demand for continuous shopping.

Entities need to relocate, optimize the supply chain, provide fast and convenient distribution options, unify management of prices, categories and promotions, eliminate barriers to online and offline channels, and achieve seamless convergence between physical stores and online channels.

In addition, the electricity providers should dig out the shopping experience and the advantages of the chain stores, effectively integrate the resources of the physical stores, and realize the fast handover of online shopping and physical store shopping.

After a few years, the labor resources of express delivery personnel will shrink, and the abandonment of a large number of packaging materials will deviate from the concept of green development.

Expanding the terminal convenience store network to "all-weather post office" and achieving "net booking store" is an effective way to solve the "last mile" problem of electronic commerce distribution.

Two, integrate supply chain, integrate service system, break through geospatial space, and create integrated.

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For example, in 2015, Yonghui joined the Lianhua supermarket and became the second largest shareholder of Lianhua supermarket, and bought 100% of Wuhan's 20% shares.

Yonghui, Lianhua, Wuhan Zhong Bai and Hongkong milk international set up a joint procurement center in Shanghai. The scale of purchasing organization is more than 100 billion yuan.

Its significance lies not in capital operation, but in linking up two companies through capital ties, complementing data and matching advantages, integrating supply chain, and combining scattered procurement sets to jointly purchase and share suppliers and service systems.

This is also a direction for the reform of retail enterprises. It not only introduces private capital, but also introduces the concept and management experience of private capital.

The three is to build a "full channel" circulation mode.

Such as WeChat, Alipay and other platforms for payment cooperation.

We will develop a large complex integrating department stores, leisure, entertainment and tourism.

Expand value-added services.

From procurement to sales to payment to value-added services, and so on, integrate and cooperate with each other and conduct all-round marketing.

Four is to expand its own business model.

By increasing experience function, precision marketing, personalized customization and so on, we will seize the "vacuum zone" between the electricity supplier and the traditional retail industry.

Explore self run, enhance the control of channels and brands, thereby enhancing market control.

Developing buyers, starting from self operated core commodities, gradually improving the proportion of self operated enterprises.