A Strong Atmosphere Of Entanglement -- Why Does The Retail Service Enterprise Be Afraid Of Entering E-Commerce?

China in 2010

Analysys International released a report on December 30, 2010 that the size of China's B2C online retail market in 2010 has exceeded 100 billion yuan mark, a 373% increase in the ring market.

At the same time, according to Analysys International forecast data, the proportion of C2C and B2C in China's online retail market paction scale has been adjusted to 80%:20% from 91.3%:8.7% in 2009, showing the trend of C2C's further pformation towards B2C mode.

AI's consulting data also corroborated this.

According to AI data, in 2010, the scale of China's network economy reached 154 billion 840 million yuan, and the desktop network economy grew strongly and the growth rate exceeded the mobile Internet.

China's online shopping market has a paction scale of 498 billion yuan, and B2C has become the mainstream of online shopping.

In 2010, the volume of e-commerce pactions in China increased by 4 trillion and 800 billion yuan.

According to Analysys International forecast, the scale of China's B2C market is expected to be close to 200 billion in 2011, and the competition of B2C enterprises will be upgraded. However, price war, as the core competition mode of the primary stage of industry, will remain the normal market of B2C in 2011.

However, in the future, with the further opening of financing channels, differentiated services of products and services will become a new mode of competition among manufacturers.

And in this hot situation, the retail department that should have made a lot of effort is still very entangled in the March.

The fact is that most physical department stores are still in a state of wait and see, or even resist, for e-commerce.

At present, only a few department stores, such as the big business group, Wangfujing group, Guang Bai group and Yintai group, have entered the online shopping mall.

From the overall situation, the online shopping mall of physical department stores is still very rare.

Relying on existing resources is a double-edged sword.

Compared with a group of B2C websites, such as van keppin and so on, in the early days, they spread advertisements on the subway, outdoor and Internet. The B2C mall, which was set up by the entity department store, was based on the big business network of the big business group and the Yintai network under Yintai department store.

Most netizens may not even know who the big business network or Yintai network are.

But in fact, the low profile of marketing does not mean a low-key operation.

The B2C mall opened by department stores has its own advantages.

Based on the development of online stores, the biggest advantage for department stores themselves is that they can make use of the brand awareness of existing department stores that have been in operation for many years and the resources of existing suppliers, especially with a group of loyal customers who are gradually accumulated in the long term business process.

These loyal consumers will choose to pay attention to the online shopping mall of the department store because they like and trust a department store, and then shop in the online shopping mall.

This is much less for the department store itself in its marketing and promotion costs.

At present, the number of real name shopping cards owned by DAC is more than 10 million, and has accumulated considerable credit and service resources in the 53 stores in the whole country.

These resources are potential support for big business networks.

Yintai group now has nearly 30 shopping malls, with about 2000000 VIP users, and 60% of the group's annual sales are contributed by these VIP users.

Yintai network CEO Liao Bin believes that these VIP users can be used for online shopping mall.

As a matter of fact, Yintai network's merchandise category was targeted at the VIP users after data analysis.

Compared with some new B2C enterprises, they are in a rush to shop in the early days, and at least they can not worry about investment.

These excellent department stores usually have hundreds or even thousands of high-quality supplier resources. When the two sides have settled, these suppliers choose to participate in the online shopping mall.

For example, there are SONY, Toshiba, Canon, BenQ, apple, NOKIA and so on, and the jewelry brands include SWAROVSKI, Montecatini and so on; the beauty cosmetics brands include "Ji", "Ji", "Givenchy", "Saint Laurent", ",", ",", ",", ","

These high-quality brand resources are difficult for a new online shopping mall, but for big business networks, it is easier to use them.

However, these advantages of physical department stores will also be a "double-edged sword".

These existing supplier resources will also restrict the expansion of online shopping mall to some extent.

Generally speaking, the number of brands that physical department stores can hold in relatively limited business space is limited.

Take a department store with 7 floors and an area of about 35 thousand square meters, for example, it can hold about 500 brands.

If it sets up an online shopping mall, it will only rely on these hundreds of brand suppliers.

If we want to further expand the expansion of its online shopping mall, it will be unrealistic to invest independently in the online shopping mall system.

Because at the present stage, the online shopping mall is still a supplement to the entity department store, but it is just icing on the cake.

The vast majority of manpower, material and financial resources in department stores are still allocated to physical stores.

However, if online shopping centers abandon hundreds of suppliers of existing stores and invest heavily in other brands, it is obvious that the online store will lose its support system at this time.

So, to what extent, relying on the existing resources, when the online shopping mall develops to a certain stage, how to break through after expansion, these are all problems.

The mode of joint venture is a great constraint.

For many traditional department stores in China, there has been no significant progress in the development of e-commerce. Liao Bin, CEO, believes that the most fundamental constraint is the current mode of operation of the domestic department store - the pool mode.

According to Liao Bin, the procurement, distribution and sales of goods are not in the hands of department stores, but in the hands of hundreds of suppliers.

Under this mode, the department stores have weak control over goods.

"Some department stores have tried e-commerce before, and an important reason is that they do not control the purchase channel, and they can not control the product themselves."

He believes that it is not feasible to do e-commerce in China without mastering goods.

In textbooks, it is considered that electronic commerce requires information flow, cash flow and logistics "three streams". But from a realistic point of view, choosing a good product and building a platform with better user experience is more important than cash flow and logistics.

In view of this, intime department store has adopted its own business model of self marketing, and has its own sales and marketing teams and independent warehouses. Its procurement channel is completely independent from Yintai department store, and it only connects with Yintai group on the platform brand and membership system.

As for the restriction of this mode, Gu Guojian, a domestic retail expert, pointed out that an important breakthrough for domestic retail enterprises to make a difference in the field of e-commerce is to implement the autonomous management system that returns to the essence of retailing.

He believes that compared with the virtual Internet retailers, most of the retail businesses today are constrained by the joint mode, which makes the physical store not only full of advantages but also a geographical sales site.

Online stores sell goods, and compared with virtual retailers, physical retailers lack the comparative benefits that consumers can bring to consumers.

Therefore, the entity retailer enters the network retail market, and the independent operation system that can return to the essence of retailing is insurmountable.

Tangled mentality of physical department stores

As the B2C market is becoming more and more popular, the entity department store is still in a very entangled state as to whether it is involved in online sales.

According to the understanding, most department store managers are very clear in mind that sooner or later they may go online, otherwise they will move against the trend.

Moreover, from a competitive point of view, once competitors first take part in the online operation and mature gradually, it will be a long time for them to enter again.

But at the same time, these bosses have deep entanglement in their hearts.

Like many brand entities, more entities of the department store are worried that once the online shopping mall has formed a climate, on the one hand, the price system is bound to be loosened in the current domestic market stage, which will have an impact on the overall brand image of the department store. On the other hand, if the members of the customer, even some of the members are turned to the Internet, they will inevitably split up the sales performance and passenger flow of the entity store.

It is the most fatal thing that affects the performance and passenger flow of department stores.

In addition, from the perspective of specific management and management, the traditional retail industry stresses the concept of management and service, pays attention to the cooperation and management of suppliers, pays attention to the management of customer resources at the scene, pays attention to the building and upgrading of store hardware and software strength, but on line, it is a completely different "Jianghu".

On the Internet, this "Jianghu", focusing on logistics, information flow and capital flow, also needs to focus on goods and user experience, which is a more complex project.

Only understand the retail experience, do not understand electronic commerce do not work; only understand electronic commerce, no retail experience and accumulation is not good.

In response, Li Xiaobin, general manager of 3D commercial real estate in Hangzhou, recently announced that "network and entity are two businesses, two different ways of thinking and two modes of operation."

Because of this, when a physical department store needs to set foot in the line, it needs another team to form a team.

At present, the new team members have the following backgrounds: one is the long time infiltration in the Internet industry; this is the main one; one is the long time infiltration in the traditional clothing or retail industry; another is a more interactive website, and some professionals will also be integrated into some online games companies.

Relying on such a brand-new compound team, online mall has independent operation and management.

It can be said that it is precisely because of the existence of a variety of factors, to a large extent, restricting the physical shop is hard to expand the online shopping mall.

The sensitivity and participation of online retailing is not enough. In the face of the rapid development of online retailing, its mental state is very complex. The concrete manifestation is: first, it is considered that online sales can not be replaced by physical store sales; second, it is considered that the development space of China's real retail industry is still very large, which can be disregarded for developing online retailing; third, generally speaking, the development of online stores in China has not yet seen the real profit pattern. Therefore, it is not necessary to pay attention to it today. Later, fourth, some retailers who have already touched the Internet have felt that the opening of online shops is completely different from the physical retail stores after a period of time, and the difficulty is far beyond imagination. Retail expert Gu Guojian pointed out that, compared with the traditional entity retailers,

However, under this complex mood, the big move of big business and Yintai marched on the line, which made the industry tangled.

When the Yintai network was formally launched, there were even comments that this was a "landmark" event on the traditional retailers' March.

In fact, the flood of the Internet is coming to speak for itself.

Icebreakers are already there. Next, we'll see how the department stores respond.

It is worth pondering that the people who are already "getting wet" do not appear to be worried about the so-called "right hand to hand fight theory".

Xie Zhonghui, general manager of Da Shang electronic commerce company, pointed out that electronic commerce is the trend of the times. It does not contradict with the operation of the entity store. On the contrary, the interaction under the Internet is more conducive to the promotion of both sides.

He believes that the momentum of e-commerce in the physical store is forcing the store to explore its own way of development, and the domain that e-commerce can not do well is the territory that the physical store can further consolidate.

The impact of e-commerce on traditional channels is inevitable, but the two is not who will replace it, but because of the different shopping experience of the two channels, the two will coexist.

This is worth pondering.