What Should We Do In The Future Of Retailing?

Just after the new year, we ushered in a year of "monkey thunder", but after the Spring Festival, the retail industry was "falling". In this early spring, the retail industry ushered in a thick chill.

All kinds of news about the decline of retail business in the 2015 year are coming.

In fact, the news is not surprising. It can be said that the decline of retail business is becoming a new normal.

According to the statistics of the national business information center, during the Spring Festival Golden Week in 2016, the retail sales of 100 major large retail enterprises decreased by 6.6% compared with the same period last year, and the growth rate dropped to the same level in 2009 after the financial crisis, which was 4.8 percentage points higher than the fall in the golden week of 2015.

The 100 large ones under investigation

Only 25 enterprises have achieved positive growth in retail sales, and 75 other businesses have negative growth in retail sales, with 50 retail sales falling by more than 10%.

Jewelry and other high-end products from Spring Festival to new year's day often become hot new year's products that people are rushing to buy. Therefore, the sales of jewelry stores should be red across the whole line, but this year's actual situation is not quite the same.

Take Zhou Dafu, for example, the sales figures of the Spring Festival holiday released by Zhou Dafu jewelry group show that the retail value of the group dropped by 29% during the Lunar New Year holiday of 14 months in January 25th this year, with a decrease of 25% in fixed exchange rate and an annual decrease of 28% in the same store sales.

Among them, the retail value of Zhou Dafu in the mainland decreased by 30%, the same store sales decreased by 31%, and the same store sales fell by 29%.

Faced with such a situation, how should the retail industry emphasize encirclement? Can we turn the challenge into a challenge?

It opens up a new era of retailing.

With the growth of sales and even negative growth, the general decline of gross profit is an important reason for the decline of retail business performance.

There are three main reasons leading to the continued decline in gross profit in the retail industry.

First, the costs, including taxes, circulation costs, labor costs and store rents, are increasing year by year.

At the same time, the price of commodities is very difficult to get up.

Indeed, rising costs have become the main contradiction in the development of retail industry.

The cost of rental, labor, electricity, card and so on in retail enterprises is more than 70% of the total cost.

Therefore, if the price of various costs keeps rising due to various objective reasons, the gross profit of the retail industry will be greatly affected.

Second, intensified competition in the industry has also led to a decline in retail profits.

In the final analysis, the retail industry is still fighting.

Instead of fighting services.

Many shopping malls are still at the low level of price competition. In the case of commercial oversupply, unless the merger and reorganization is achieved, the gross profit margin of retail businesses will go up.

The third reason comes from the booming electricity providers in recent years.

The emergence of the electricity supplier has caused great pressure to the real business.

The intermediate links of the electricity supplier itself are few, and in addition, in order to seize the market share, some large electricity providers even lose money to carry out sales.

Ma Yun said, the bad news is that the economy is very bad, and it may not be good enough. The good news is just as bad as everyone.

With the Boston matrix analysis, the physical retail industry has become a "thin dog". In the Seventeenth National Congress of the Communist Party of China, it is the most important thing in the profession.

However, no matter how hard the situation is today, we must not continue to fail.

It doesn't matter if you fall down. The most important thing is how to stand up, how to stand firm and never fall down again.