Pure Electric Business Enterprises Are Developing In Full Swing, Where Are The Reasons?

With the rapid growth of the national economy in the past 30 years, the physical retail enterprises, especially the supermarket formats and specialized electrical appliance formats have gained a brutal growth. Many enterprises have become one party "commercial warlords", but their performance in recent years can be seen as worse and worse.

There are some small ones in 2015.

It has come to the end.

This is not alarmist, the data of listed retailers are all public, do not believe in their own collection and analysis.

At the same time, some only 35 years of pure.

The development of enterprises has been in full swing, for example, when vip.com was founded in 2012, it will be listed in the United States three years later.

Where is the reason? Let's talk to you.

Methodology: collective disregard of retail business to users

After years of accumulation, retail enterprises have a relatively large volume, which can be regarded as rich, people, and grain. But why is there a failure in the impact of the electricity supplier? I think there is a problem with methodology.

I want to compare the difference between the two formulas.

The business logic of physical retailing is: Profit = sales revenue * gross margin + back charging - operating cost.

The business logic of an electric business enterprise is: Profit = user gold content * user scale * user activity.

Although they are all selling goods, they are totally two totally different business concepts.

One is from the financial point of view, the other is the user perspective.

Because of the different ideas adopted, the methods adopted are quite different.

From the above, we can see that all the strategies of physical retailing are designed around financial indicators, and retail enterprises emphasize the importance of "talking with data". Extensive management has brought about the unsustainable problems that are difficult to eradicate.

Retail businesses are almost stagnant now.

In the past few years, there are still few commercial projects, and the rental level of shops is also very low. Shops often make profits when they come out. Now it is difficult to find suitable projects.

In the next three to five years, many retail businesses are faced with the problem of the expiration of the tenancy of the shops. By that time, many retail businesses are expected to close their stores and stop bleeding (Huarun will close 68 stores in 2016).

Blind promotion

The promotion of physical retailing can be said to be numerous and varied, but the effect of sales promotion is getting worse and worse, and the gross profit is lost.

It seems that the effect of activity is better than that of food.

In order to improve short-term promotional results, sell low quality products.

As a result, the location is getting lower and lower, and users are not buying it.

Bubble of selling price

The price bubble of physical retailing has been very serious. It was a department store format, and now it is a supermarket.

Basically, retail enterprises do not control the pricing power, and the pricing power is actually in the brand business.

In order to cope with the increasing demand for gross profit margin of retailers, suppliers have been pushing prices up.

False de intermediation

In order to control the purchase price, retail enterprises have been shouting to shorten the supply chain to intermediation and direct production. But in fact, they are mostly in the form of a manufacturer. How can the manufacturer sign the contract?

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Charge! Charge! Charge!

Many retailers' back charges to suppliers may have become the main source of their profits.

This is the zero point contradiction in recent years, and the government has repeatedly intervened and legislating.

The fee link can be roughly divided into "entrance fees" and "marketing expenses".

In order to avoid the high cost of entering the door, many manufacturers choose to find the dealers' backdoor listing on the local market, resulting in the formation of some oligopoly dealers who are affiliated with retail enterprises, and they fight against the retail enterprises. The selling of shelf space causes the enterprises to lose control of the right of production.

The paradox of cost control

The retail industry is a labor intensive industry. The important means of controlling cost is the control of employee's salary level.

For example, a city like Shenzhen that breathes air is too expensive. The monthly salary of employees is 2500.

It seems that the cost is low, and the actual employees' slack off is particularly serious.

In addition, most of the stores are salesmen who are stationed by suppliers. They seem to pass the labor cost on the surface. In fact, suppliers will sneak up 10% on the next offer.

Retail companies play like landlords. They do not really care about production, and suppliers are like tenants.

The landlord only cares about how many rents he can take this year, and he doesn't care about the things that are produced, whether they are expensive or not, or who he sells to them.

Master: obviously a poor Cock silk, he will dress up to participate in various activities to get acquainted with his sister's opportunity (promotion and wide open entry), and even go to the street to meet his sister, so he will be bold enough to chat up his cell phone number (push). After that, he will make up the number of the girls he knows, and take down all his character, hobbies, and everything. (User Research), no matter what he wants to do, or try to laugh at the P diagram. And the electric business enterprise is simply "pick up the younger sister".

As for the day to roll the sheets, there is no hurry to run!

In fact, this is not only the way of Jingdong Ali, but also the way of micro business.

In essence, their tactics are user first and "attack the heart to attack the city". The overall product development and operation must focus on user needs, user habits and user experience, and enhance the landing through the design of process, architecture and report forms, so as to really put users in mind and hold hands.

They are clear in strategy, clear in division of labour and quick in action.

I think that all the highest standards of business conduct should be user centered, and the methodology of practicing user thinking is king.

The biggest gap in physical retailing lies in the neglect of users.

Retail enterprises have long dominated the industry in the rapid development of the past 20 years, forming the so-called "channel is king" situation, sitting retailers, kneeling suppliers.

But long-term relative monopoly will also lead to the degeneration and bureaucracy of team professionalism.

In the face of the great changes in the industry today, I would like to ask, is the old man of Lian Po still able to eat?

There is a data about team age: the average age of Baidu employees is 26 years old, the average age of WeChat is 27, and the average age of an employee is 32 years old. People over 35 years old do not want to do so.

The age of the retail industry practitioners should be over 40-45 years old, and the two or three tier cities may be even higher.

Although I would not be extremely convinced that the younger the better, the younger team has a very strong advantage:

Young people are energetic and energetic, and the retail industry really needs these fresh blood.

Young people are very strong in plasticity. If they can get a healthy business environment suddenly or encounter the guidance of good people, their growth potential is amazing.

Another important point is that today's young people's familiarity with target users is like looking at themselves in the mirror: the population born from 1980 to 1990 is about 2.5-3 billion. This group is very strong in terms of population size, willingness to consume and spending power, and your business competitors and they are the same group of people, you are not.

You may say that young teams are inexperienced, but in fact, your so-called experience is not so valuable in this changing era.

Let's talk about the lack of knowledge structure.

The introduction of commodities in the retail industry is often assessed in this way.

1, the introduction of benchmarking stores or competitors, if there is, that can add points.

2. What is the sales performance in other channels?

3, how much admission fee or gross margin can be given, the satisfaction can be added.

4, similar merchandise sales performance is good, can add points

5, the goods mentioned by the boss can be added.

5, supplier impact and PR (omitted here 100 words)

It is not only the lack of consciousness but also the lack of knowledge structure. Without the most important source and premise, the introduction of commodities will become a "order" entirely, relying solely on the character and experience of purchasing, and enterprises will pay a huge cost of trial and error.

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How many of the retail practitioners are still actively learning?

The starting point of the electricity supplier team is very high, but still pays great attention to team learning.

Whisper, "other people are smarter than you, and they are much younger than you."

Barbarians are already hitting your door. Many people are still disdain: "physical retailing is not lost to the electricity supplier, but is affected by the macroeconomic downturn". "The electricity supplier's stamina is not enough, and the customers will eventually return to physical retail". "O2O decisive battle online, we have the advantage of first nature, waiting for the wind to come."

During the Great Qing Dynasty, Wei Yuan cried out "to teach foreigners to build skills", but you didn't even admit the courage of the gap.

In the end, he offered free Joyoung's inner work method: "he is strong in his work, and the wind is blowing the hills." he is shining across the river from the moon. He comes to himself from ruthless, and I am self satisfied. This is the strong Ying Youzhi state. But is your mouth really strong enough?