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    Online Stores Fight &Nbsp With Physical Stores; Who Is Better?

    2010/3/29 13:53:00 12

    Online Shop

             

    In 2009, the volume of online shopping market reached 250 billion yuan. E-commerce enterprises firmly believe that the online shopping industry will become the main channel for future consumption.

    However, the traditional retail enterprises seem to have no regard for this change, and think that online shopping is at best a supplement to their personal consumption channels.

    In the pformation of the consumption channel brought by the Internet, who will ultimately have the right to control the channel will still have to wait and see in the new 2010.


    After the explosive growth of the domestic online shopping market in 2007, the high-speed growth trend continued in 2008 and 2009, and famous shopping websites such as Taobao, Jingdong mall, van customer service, Dangdang and so on emerged.


    The base of Chinese netizens represents a bright prospect for the domestic online shopping market.

    With the maturity of online business, such as online payment, trustworthiness service and shopping search, the convenience of online shopping will make online shopping an important shopping mode.


    In the context of the gradual maturity of online shopping habits, well-known brands began to join the ranks of online shopping.

    Since last year, Lining, Jack Jones, BELLE and other enterprises have opened an official online store in Taobao, trying to cultivate their own brand online shopping market through Taobao's customers.


    Not only high profit clothing has become the focus of choice for e-commerce enterprises, but also the online sale of 3C products.

    Statistics released by Taobao yesterday showed that the number of Electric City days visited in January this year has exceeded 3 million passengers. At present, more than 200 genuine brand manufacturers have joined.

    According to publicly available data, Gome has more than 1 billion passenger trips per year with more than 1300 stores, equivalent to a daily average of 2 million 740 thousand passengers.

    The network electric city passenger flow has surpassed the traditional store.


    Online shopping platform is sought after by capital


    The rapid development of e-commerce industry has made emerging e-commerce enterprises become the capital markets.

    This year's government work report put forward the need to "actively develop e-commerce", and let many venture capital institutions have confidence in investing in e-commerce in the future.


    Zhang Zhouping, an analyst with China's e-commerce research center, said that after the Spring Festival, the A share capital market showed a strong pursuit of e-commerce themes and concept stocks.

    Dozens of venture capital institutions hope that the China electronic commerce research center recommends financing projects for e-commerce companies with innovative business models and development potentials.


    In fact, the rapid development of e-commerce is inseparable from the capital market.

    As early as 2003, Dangdang has completed the third round of financing. It was also in the same year that Dangdang's old rival completed 52 million yuan RMB financing, and began large-scale expansion and promotional activities.

    Jingdong mall completed the third round of financing at the beginning of this year, and obtained tiger Global Fund's investment of US $150 million.

    A new round of financing for another e - commerce enterprise is close to hearing.


    After obtaining financial aid, e-commerce enterprises have developed rapidly.

    Dangdang quickly occupied the online book sales market through price war, and gradually realized profits through the development of department stores.

    Jingdong mall quickly occupied the 3C market on the basis of the first two rounds of financing. This year, after obtaining the third round of financing, the action was frequent. This month, the Jingdong mall officially announced the acquisition of the thousand search network, trying to make a big department store industry, followed by the Jingdong mall and the super flash marriage.


    Young group achievement online shopping future


    In the Council of the Beijing E-Commerce Association, the two e-commerce business executives said in an interview with reporters that with the generation of "80 generation" and "90 after" becoming the major consumer groups of the Internet, the online shopping market will usher in a breakthrough development and become the mainstream channel for shopping.


    Xu Lei, vice president of Jingdong mall, said in an interview with reporters that there are various needs of consumers in the future. One way of circulation can not take the place of other ways. Whether it is a physical store or an online shopping mall, the circulation channels should be complementary.


    However, the new seven day electrical direct sale network CEO left Ying Jie has the confidence to the electronic commerce prospect.

    "In the next 5 years, there will be profitable e-commerce enterprises," Zuo Yingjie said. At that time, e-commerce enterprises had already passed the initial stage of development and entered a relatively mature stage.

    "In the next 10 years, e-commerce and physical stores will occupy half the market in the retail sector."


    As for traditional enterprises' doubts about the profit pattern of electronic commerce, such as loss management, Xu Lei also said that there are eye catching businesses and profitable businesses in the process of business marketing.

    It is not a problem for e-commerce enterprises to achieve profits, but for e-commerce enterprises, the scale is higher than profit.


    Zuo Yingjie believes that nowadays, traditional enterprises generally regard the Internet as a tool, and regard e-commerce website as a display platform without sales function.

    Although traditional enterprises regard e-commerce websites as dispensable tools, e-commerce enterprises regard it as the basis for survival.

    This is because the consumption habits of consumers are changing and the channels of distribution must also be changed.


    The opposite characteristics of e-commerce and traditional commercial peak season may provide support for Zuo Yingjie's view.


    Take the just concluded Spring Festival holiday as an example, the peak season of e-commerce enterprises is one or two months before the holiday, while traditional physical stores are on holiday.

    In the busy season of the two days, the passenger flow in the traditional retail channels on weekends is double, and the weekdays, especially the weekdays, are relatively cold. The working order of e-commerce enterprises, especially on Monday, is higher than that of the weekend.


    Traditional retail


    Query shop cost price sales "not long"


    Although the e-commerce industry is booming, it is rare for business to thrive.

    This has become the basis for traditional enterprises to question the mode of e-commerce.


    Suning Appliance chairman Zhang Jindong pointed out the drawbacks of e-commerce directly.

    Zhang Jindong believes that the circulation industry must have added value, but most of the online stores sell products at cost price, which can not provide additional value, which is not in line with the law of commercial development.


    Zhang Jindong said that although the twenty-first Century is the Internet age and the information age, the Internet is just an information platform, and it can not be the fundamental of commercial circulation.

    It believes that "anything that has no added value will not last forever."


    The view that e-commerce enterprises will not become mainstream has been supported by some traditional business executives.

    Besides losing money and earning money, "unable to live experience" is the most talked about defect of online sales in traditional business enterprises, which determines that it can only act as a supplementary function.


    Jin Yuan, general manager of new Yansha MALL, Fu Yuehong, said shopping experience is a process of enjoyment. Clicking on consumption can only provide convenience and can not provide pleasure for shopping, which is an important factor restricting the development of online shopping.


    Although some supermarket executives did not directly explain that online shopping is difficult to shake the mainstream position of traditional channels, it answered this question with the proportion of sales of online sales and traditional channels sold by foreign retail giants such as WAL-MART and TESCO.

    According to public data, online retail sales of foreign retail giants are hard to compare with sales generated by physical stores.


    Retailers launched a defensive battle.


    Although traditional enterprises do not believe that online shopping will replace store sales, traditional enterprises have launched a defensive battle, opening online shopping centers and streaming online shopping customers.


    In January this year, China Chain Association's survey data on large chain enterprises in Beijing, Shanghai and Shenzhen showed that respondents generally mentioned that they began to pay attention to online shopping, and Shanghai's chain enterprises had the highest concern for online shopping.

    Shanghai's agricultural and commercial supermarket has opened online shopping at the end of last year, and is now improving its system to support the store's pick-up business.

    It is understood that at present, COFCO has opened up my buying network, and Xidan shopping mall has intensified its publicity on its online shopping mall.


    Zhang Yanping, an analyst with AI consulting, believes that in the next few years, traditional enterprises will show a trend of net contact, and the number of B2C enterprises will rise rapidly.


    It is reported that the Ministry of commerce is drafting a document on "supporting traditional commercial enterprises to enter e-commerce", which will provide special funding support for traditional commercial enterprises to enter e-commerce, so as to promote commercial enterprises to drive sales of stores by network sales.


    According to the analysis of China Electronic Commerce Research Center, as e-commerce is becoming an important tool for China's pnational trade, e-commerce is extending from B2B to B2C.

    The relevant state departments will introduce preferential measures to increase the traditional commercial enterprises to enter e-commerce.

    Traditional commercial enterprises have good reputation and after-sales service. Although more traditional retail giants are involved, the traditional retail online mall bears more brand effect.


    Channel control requires supplier resources.


    Traditional entity stores, e-commerce or not, who wants to become the main channel of consumption is inseparable from the integration and control of suppliers.

    At present, an indisputable fact is that sales of traditional physical stores are still the main channel of consumption for manufacturers.


    Taking home appliance manufacturers as an example, the director of a color TV company in China talked about the mainstream problems of online shopping and traditional two channels, and said that at present, home appliance stores are still the core sales channels, and the meaning of online sales channels is more "for product display and information release".


    Mr. Wang is not only a supplier of small household appliances and kitchen and bathroom in the three biggest stores in Beijing, but also has an online shopping mall of his own company.

    For the status of physical channels and online shopping malls, Mr Wang said that the online shopping mall is only in a "survival" state, and the company's main profits and businesses are still selling traditional stores.


    According to a diamond dealer, its diamond products are not only sold in Dangdang and other mainstream online shopping channels, but also have physical counters.

    In its view, online shopping and physical stores are two different channels of consumption, both of which can not be ignored.


    Expert opinion


    Online shopping and physical stores can not replace each other


    The opinion of experts seems to be more pertinent in the dispute between e-commerce enterprises and traditional enterprises.


    Lai Yang, Secretary General of Beijing Institute of business economics, believes that although online shopping centers will have an impact on physical stores, they can not replace physical stores. The integration of the two is inevitable.

    If traditional enterprises do not "touch the net", their market will be split by their competitors, but online stores also need to have physical store assists, such as Yue you and other online shopping outlets.

    For consumers, both online stores and traditional physical stores are the same service platform.

    Whoever can provide a reasonable price and convenient service will take advantage.

    "Although the growth rate of e-commerce is very impressive at present, it will become weaker and diluted, and the growth rate will also slow down to a certain extent."

    Lai Yang analysis.


    Fang Yingzhi, an e-commerce analyst, thinks that for the traditional enterprises, the sale of offline stores will occupy a relatively high share in the overall performance, while online sales can be an auxiliary channel. However, the potential of online B2C enterprises on the basis of survival is also very attractive.

    "Future stores and e-commerce must coexist.

    But with the coming of e-commerce boom, its infrastructure construction, derivative services and the continuous improvement of the legal system, e-commerce will bring a "revolution" to traditional enterprises.


       

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