The Concept Of "New Retail" Turned Out To Be A Thousand Stone Waves.

"New retail" is a new challenge, requiring every retail practitioner to face and ponder seriously. After finding the right direction, adhering to the spirit of "persistence, persistence and persistence", it is possible for a department store to get out of the predicament and meet the hopeful future.

In the 2016 business network

On the other hand, the "new retail" theory put forward by Lian Shang network and Ma Yun was born.

Instant, one stone stirs up thousands of waves, and the conclusion of the end of the pure electricity business era is really exciting for the small partners of physical retail. It also seems to see a little hope in the physical store in the cold winter.

However, what is "new retail", as one of the important formats of physical retailing, how can department stores integrate organically online, offline and logistics? This paper tries to analyze the difficulties and difficulties of department stores in realizing "new retail" from the perspective of supply chain, and tries to put forward some specific solutions.

For stores with good location and guaranteed performance, we will provide shipping business for online orders while developing offline sales.

Once this practice is extended, the department store will completely become a fitting room for the offline storage and e-commerce platform of the brand, and will lose the initiative of the game department for the department store with declining performance.

I. status quo

Department stores generally establish cooperative relationship with brand dealers in the form of counters, that is, sharing interests with brands through sales division.

In the past few years, many department stores not only "difficult to enter the door, ugly face", but also set a low level of "bottom guarantee". Once the target is not reached, the brand still needs to pay by "paying the bill".

Income.

The long-term interest game makes the relationship between department stores and brands more and more intense. Once the performance of department stores is declining, the brand will appear to be no longer willing to buy or even withdraw.

In the process of sales activities management, the vast majority of department stores and brands are in a "disjoint" state in terms of commodity management.

That is: the department stores provide venues, organize promotions, provide unified cash registers, and are responsible for commodity maintenance and inventory management by brand dealers, and cooperate with department stores in promoting sales.

The responsibilities of both sides are clearly defined.

Over the years, department stores have not grasped commodity information for a long time and do not own the ownership of goods, resulting in the demand for customers can not be accurately grasped. "Two landlords" business model is difficult to manage in the environment of commercial real estate oversupply.

In recent years, Bailian, Wangfujing and other industry leading enterprises have put forward the concept of "deep pool" and "single product management". They hope to deeply participate in the process of commodity maintenance and inventory management of brands, so as to grasp commodity sales information in a timely and comprehensive manner, and further understand consumer needs through data cross analysis with their own CRM system, and create conditions for improving department store operation efficiency and promoting performance recovery.

Two, crisis

The "two skin" relationship between department stores and brands in commodity management determines the different management ideas of the two sides in the information system.

The Department Store adopts POS centralized cash collection system. It only hopes to manage the sales of brand operators uniformly, provide protection for "bottom sale", and reasonably occupy a large amount of working capital through the sales account period.

Therefore, department stores are not concerned with what brands sell and how to sell them.

The so-called ERP, the front desk is often extended version of the POS collection system, and through the "big class code" recorded sales.

Although the brands are subject to department stores, they can not use extensive "big class code" management as department stores do. They adopt precisely the high management accuracy and strict control of SKC and inventory.

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While recording sales through the department store's POS system, brand operators also need to carry out the operation of "entering, selling, adjusting and storing" in their own ERP system.

Through field observation, it can be found that many brands of mature ERP systems have integrated online and offline business management, and integrate offline sales with Tmall, Jingdong, vip.com and other online business platforms.

After carefully balancing revenues and costs, some smart brands have begun to selectively close some of the 100 store counters.

For stores with good location and guaranteed performance, we will provide shipping business for online orders while developing offline sales.

Once this practice is extended, the department store will completely become a fitting room for the offline storage and e-commerce platform of the brand, and will lose the initiative of the game department for the department store with declining performance.

Three, predicament

In fact, the insight in the industry has long seen the crisis, and has repeatedly shouted, hoping that department stores can achieve self salvation through "single product management" and "buyer self employment" as soon as possible, but few enterprises have actually put into practice and achieved results.

Why we should implement the "single product management" is generally considered to be based on the following two points:

First, "single product management" can injecting electricity supplier genes into department stores. There is no "single product management", and online and offline integration will be impossible.

Two, the "single product management" can collect accurate commodity information, without "single product management", and the department store will miss the "big data" wave.

However, in the case of neither brand ownership nor inventory control, department stores want to push the "single product management" to be somewhat incompetent. Detailed analysis can be seen in the "O2O shop" and "solutions".

In the process of promoting the online sale of branded goods, there are difficulties again.

First, brand operators can set up self controlled online stores on Tmall, Jingdong and other electronic business platforms. There is no need to hand over goods to department stores on the line, and the cost of independent supply by brands will be significantly lower than that of department stores.

Second, if the Department Store simply synchronize the offline products to the electronic platform sales, then its purchase price is lacking in strength. Even if there is sales, it will be a drop in the bucket before the huge operation cost.

For department stores, the sale of touches through brand names can only be carried out in the mirror.

As for the good blueprint of "big data", it is even more illusory under the premise of lacking "single product management".

Without breakthrough innovation, the "new retail" of department stores will inevitably enter a "blind alley".

Four, solving problems

In the face of difficulties, do department stores really have no way to go? Is the implementation of "single product management" a life-saving straw in department stores? What kind of IT structure can make ERP of department stores and branding companies constitute double engines with double effect? The general sentence is: what kind of new supply chain relationship should be constructed so that department stores can break through?

From the historical experience and lesson, if we want to achieve strategic breakthrough, we must recognize the direction and implement it unswervingly until we achieve the established strategy.

It should be said that Ma Yun's "new retail" trend, which is organically combined online and offline, has indeed pointed out the direction for the department store.

If the managers of department stores fail to understand deeply and identify from their hearts, it will be difficult for enterprises to embark on the path of "new retail".

Only when the "leaders" go into battle in person, can they lead the department store to restructure supply chain relationship and commodity management mode, so as to achieve strategic breakthrough.

When people have been soberly aware that online and offline convergence will be the trend of the trend, who can achieve integration as soon as possible, who will take the lead in the future competition.

Five, scheme

(1) realization of "single product management"

The implementation of "single product management" is very difficult, but the greater the difficulty, the greater the opportunity.

Before the industry, the judgement on the benefits brought by "single product management" to department stores is accurate. The results of the Japanese and European and American retail businesses over the years have verified this judgement.

Therefore, domestic department stores must make up their minds to overcome psychological barriers and achieve "single product management" as soon as possible.

(two) fill in the "EPP gap"

In order to achieve "new retail", the premise of a department store is to become an indispensable link in the "new retail" supply chain.

The ERP of the department store is connected with the supplier's ERP, and the information is butted with Tmall, Jingdong, vip.com and other platforms, so as to realize the integration of online and offline businesses.

In the process of system integration, resource sharing is realized, operation efficiency is improved, and total cost is reduced.

(three) straighten out the "interest relationship".

Hustle and bustle are all profits. No matter online or offline, the purpose of sales is to create economic benefits. However, because of the differences among brands, electricity suppliers, department stores, stores and logistics, the distribution of benefits is divided.

In order to achieve efficient information sharing, all participants can benefit equally, so that "new retail" will continue to develop healthfully.

If a customer orders online, a physical department store takes delivery of goods, is shipped by a brand dealer, and the third party logistics participates in the distribution, the four participants need to make reasonable profit distribution. The electronic business platform charges the platform fee, the department store receives the sales commission, the sale scale of the brand is maximized, the logistics obtains the logistics fee, the parties profit at the same time, the social efficiency is improved, and the total cost of the supply chain is reduced.

(four) building "new C2M"

C2M (consumer to producer) mode is a good business model for certain categories, which not only reduces circulation costs, but also provides good quality and cheap products.

However, if we skip all the links directly and arrive directly from the consumers, we will seriously affect the vested interests of the participants in the existing supply chain, and there will be great resistance in the actual promotion.

It is hard to win the recognition of the vast majority of brands and department stores.

Therefore, if we can rebuild the supply chain relationship, on the one hand we can achieve information C2M, and on the other hand, simplify the circulation link and keep the relevant interests of the reasonable participants in the supply chain, then the cost reduced through the optimization of the supply chain can be turned into revenue.

In the ideal state, if we can increase sales or improve operational efficiency, we will bring higher marginal revenue.

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