Ma Yun And E-Commerce "Take The Blame" For The Collapse Of Physical Stores

Recently, the sound of physical stores closing has been rising one after another. Large and small malls across the country are facing a rare trend of closure. Wal Mart stores across the country have been closed one after another. Wanda Department Store, the richest man Wang Jianlin, has also been closed frequently. Slogans such as "clearance sale" and "jumping off buildings for sale" can be seen everywhere. For this reason, some people blame Ma Yun, Liu Qiangdong and the rising e-commerce, but is this really the case? Perhaps, online retailers Just carrying the blame for the real culprit!

　　 Physical stores are filled with grief, causing the largest collapse in history

In 2016, the closing tide of physical stores was as fierce as a flood, but also like the post-war cities. So far, not only tier one and tier two big cities, tier three and tier four medium-sized cities, but also 2862 county-level cities in China have all experienced the phenomenon of physical stores closing. In addition to the closing of small shops, the life of supermarkets is also difficult. For example, Wal Mart, the world's supermarket chain, announced that it would close 269 physical stores around the world at the beginning of this year, and Wang Jianlin's Wanda Department Store also closed nearly 40 stores. At the same time, some clothing brands are also gradually closing. For example, in the past three years, Meibang has closed 1500 stores, while Seven Wolves has closed more than 500 stores so far.

In the past, the commercial center and pedestrian street were crowded with people, but now there is an embarrassment of "empty people". Looking around, the slogans of "this room for rent" and "rent back and sublease" have become signs, just like the epitaph of the commercial street, giving a gloomy feeling

"There are few pommel horses in front of the door", and the current situation of physical stores is very bleak. Therefore, this wave of physical store closure was also called the largest wave of closure in history by industry professionals and many shopkeepers.

Is bankruptcy impacted by e-commerce? Ma Yun: I don't carry the pot

Although the rise of e-commerce has indeed affected the development of physical stores, the involvement of e-commerce has shared the benefits of physical stores profit However, with the increase of consumer demand and the outdated business philosophy of physical stores, the development of e-commerce has become unstoppable. At the same time, e-commerce has driven the transformation and upgrading of a large number of traditional enterprises, and also given many people the opportunity to start a second business and obtain employment. Therefore, the impact of e-commerce on physical stores is that the advantages outweigh the disadvantages. To blame e-commerce for the closure of physical stores is undoubtedly to wear the wrong hat, while Ma Yun and Liu Qiangdong are just "heroes with pots on their backs".

　　 Housing prices rise and rents soar, making it difficult for physical stores to sustain

So, who does e-commerce carry the blame for? Who is the real culprit for the closure of physical stores? Is it rental cost or business philosophy? There is no doubt that the answer to this series of questions is the same, that is, the house price and rent are the main culprits for the closure of offline physical stores.

In recent years, the price level has risen rapidly, especially the housing price. As the real estate bubble continues, not only housing prices and rents are rising, but also commercial housing prices and rents are rising. The rise in house prices has led to the rent of stores increasing several times, followed by the gradual increase in the cost of physical stores. Faced with a decrease in customer flow and a rise in rent, many physical stores were forced to close because they could not make ends meet.

It is estimated that the rent of physical stores has accounted for 30% of their total costs, but the increase in rent continues at an annual rate of 20%, which is twice the average sales, and is undoubtedly the culprit for the closure of physical stores.

There is no doubt that the high rent derived from the housing bubble is the cause of offline physical store The "real culprit" of bankruptcy, and e-commerce is just a backer!